WOODHAM & ERICKSON (No.2)

In *Woodham & Erickson (No.2)*, Judge McGuire of the Family Court of Australia considered a dispute concerning the validity and construction of a co-habitation and Binding Financial Agreement (BFA) entered into by the parties. The primary issue before the court was whether the BFA should be set aside, and consequently, how the proceeds of sale of the former matrimonial home should be distributed.

The court was required to determine whether the agreement constituted a valid Binding Financial Agreement under section 90G of the *Family Law Act 1975* (Cth). This involved an assessment of whether the formal requirements for such an agreement had been met, and if so, how the terms of the agreement should be interpreted and applied to the distribution of the sale proceeds of the former matrimonial home.

Judge McGuire found that the co-habitation and Binding Financial Agreement was indeed a valid Binding Financial Agreement pursuant to section 90G(1B) of the *Family Law Act 1975*. The court's reasoning, though not detailed in the provided text, led to the conclusion that the agreement should be upheld. Consequently, the court ordered that the proceeds of the sale of the former matrimonial home be distributed in accordance with the terms of the BFA. This included the payment of sale costs, a specific sum of $240,000 to the wife, and an equal division of the remaining balance between the husband and wife.