Binding Financial Agreements in Australia: Protect Your Assets and Rights

Introduction

A Binding Financial Agreement (BFA) is a legal contract between parties that sets out how assets, liabilities, and financial resources will be divided in the event of separation or divorce. In Australia, BFAs are a key tool under the Family Law Act 1975 (Cth) to provide certainty and protect financial interests.

What Is a Binding Financial Agreement?

A Binding Financial Agreement is a legally enforceable contract that allows parties to:

• Decide how property and financial resources will be divided upon separation

• Address spousal maintenance obligations

• Protect pre-marital assets or inheritance

• Establish terms for de facto relationships, marriages, or same-sex relationships

Unlike a Will, a BFA comes into effect during life and can help reduce disputes in the event of separation.

Who Can Make a Binding Financial Agreement?

BFAs are available for:

• Married couples (before, during, or after marriage)

• De facto couples (including same-sex relationships)

• Parties seeking to alter financial rights after separation

Both parties should provide full financial disclosure, and each must obtain independent legal advice for the agreement to be binding.

Benefits of a Binding Financial Agreement

1. Certainty and Control – You decide how assets are divided rather than leaving it to a Court.

2. Flexibility – BFAs can be customised to your unique financial and personal circumstances.

3. Protection of Inheritance or Family Assets – Ensures family assets or inheritances remain protected.

4. Reduced Legal Disputes – Minimises costly and lengthy litigation.

BFAs are particularly useful for second marriages, blended families, business owners, and couples with significant pre-existing assets.

Risks and Considerations

While BFAs provide certainty, they must be drafted carefully to avoid being set aside. Courts may invalidate a BFA if:

• There was fraud, duress, or undue influence when signing

• Full financial disclosure was not provided

• The agreement is unjust or unconscionable

• Independent legal advice was not obtained

Our family law team in Melbourne ensures all BFAs meet legal requirements, reducing the risk of later disputes.

How Kennon Lawyers Can Help

At Kennon Lawyers, we provide comprehensive advice and services for Binding Financial Agreements, including:

• Drafting customised BFAs for couples and individuals

• Reviewing existing agreements to ensure legal compliance

• Providing independent legal advice to one or both parties

• Representing clients in disputes regarding BFAs

We take a practical, strategic approach to protect your financial future and minimise conflict.

Contact Kennon Lawyers

Protect your assets and financial rights with a professionally drafted Binding Financial Agreement.

Contact Kennon Lawyers today for confidential advice from experienced family lawyers in Melbourne.

Visit www.kennonlawyers.com.au or call (03) 9828 1456 to book a consultation.