Binding Financial Agreements

A Binding Financial Agreement (BFA) is a legally binding contract that allows couples to determine how their assets, liabilities, and financial resources will be divided in the event of separation, rather than relying on the Family Court to decide.

Often referred to as “pre-nuptial agreements,” BFAs offer certainty and protection for your financial future, whether you are entering a relationship, already in one, or contemplating separation. These agreements are governed by the Family Law Act 1975 (Cth), which applies uniformly across Australia, and have strict requirements for enforceability, including the paramount need for independent legal advice for both parties.

Our experienced family law team specialises in drafting, reviewing, and advising on Binding Financial Agreements, providing you with clarity, peace of mind, and protection for your financial interests.

Types of Binding Financial Agreements We Handle:

BFAs can be made at various stages of a relationship, catering to different needs:

  • Before Marriage or De Facto Relationship (Pre-Nuptial Agreements): commonly known as “pre-nups,” these agreements are ideal for individuals entering new relationships, particularly those with significant pre-existing assets, business interests, inheritances, or children from previous relationships, seeking to protect their wealth.
  • During Marriage or De Facto Relationship (Post-Nuptial Agreements): these agreements can be made at any time during a relationship to formalise financial arrangements, manage expectations, or address changes in financial circumstances or asset accumulation.
  • After Separation: these agreements are made after a relationship has ended but before divorce (for married couples) or final property orders are made. They offer a private and often less contentious way to formalise a property settlement.

The Critical Importance of Independent Legal Advice:

For a Binding Financial Agreement to be legally enforceable under the Family Law Act 1975, both parties must receive independent legal advice from their own solicitor before signing the agreement. The solicitor must then provide a certificate confirming that this advice has been given. Failure to meet this strict requirement can render the BFA unenforceable, leaving your financial arrangements vulnerable to a court’s discretion.

Our role is to:

  • Explain Your Rights & Obligations: we clearly articulate the effect of the agreement on your rights and how it impacts your financial position in the event of separation.
  • Advise on Disadvantages: crucially, we highlight any disadvantages to you in signing the agreement, ensuring you are fully aware of potential sacrifices or risks.
  • Discuss Alternatives: we discuss whether it would be advisable for you not to sign the agreement and explore alternative avenues for resolving financial matters.
  • Provide the Solicitor’s Certificate: once you fully understand and consent to the agreement, we provide the necessary certificate, confirming that you have received independent legal advice, a non-negotiable step for the BFA’s validity.
Safeguard your financial future. Contact us today for expert and independent legal advice on Binding Financial Agreements.
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