A binding financial agreement (BFA) is a legally enforceable written agreement between couples outlining the division of assets and financial matters in case of relationship breakdown. It can cover property, spousal maintenance, superannuation, and other financial resources.

To ensure compliance with the Family Law Act 1975, it’s imperative that both parties receive independent legal advice before signing anything.

To create a prenuptial agreement in Australia, the parties must:

  • Disclose their financial situation
  • Reach an agreement on the terms of their BFA
  • Have their BFA drafted by a family lawyer
  • Seek independent legal advice regarding the proposed new financial agreement, as it is in their best interests and compliant with the Family Law Act.
  • Sign the written agreement after independent legal advice

The cost of a binding financial agreement varies based on complexity, the number of assets, and legal fees. It’s essential to seek legal advice to understand your financial situation and ensure the agreement meets all legal requirements, including full disclosure and compliance with the Family Law Act.

Yes – but only after each person has obtained independent legal advice. This is much more than just ‘getting a signature’. To start with, it’s a legal requirement to ensure the agreement is binding. Each lawyer must personally review the agreement in full, and explain to their client how it will affect their rights.

This requires a full understanding of your financial position, and you will be advised on any advantages or disadvantages of entering into the agreement. Once your lawyer has reviewed the agreement and your personal circumstances, you will be given clear advice on what signing it will mean in your situation.

From there, you will receive a certificate confirming that you have had independent legal advice, which makes the agreement enforceable. Get in touch with our Brisbane binding financial agreement lawyers to have a chat about how we can help.

Binding financial agreements can be worth it if both parties want certainty and security over financial matters in case of separation. They provide a legally enforceable framework for property settlement, asset division, spousal maintenance and superannuation splits, preventing future disputes and protecting both parties’ financial interests.

A binding financial agreement can be made at various stages of a relationship, including before marriage (prenuptial agreements), during the relationship, or after separation. It can also be made for de facto couples and covers financial matters, spousal maintenance, and property division.

A binding financial agreement can cover asset division, spousal maintenance, child support, superannuation, and financial resources. It ensures both parties agree on financial matters and provides clarity in the event of separation or divorce, offering a legally enforceable framework to avoid court involvement.

An existing binding financial agreement can be changed with the consent of both parties, provided that a new written agreement is created. Significant changes in circumstances, such as financial resources, spousal maintenance, or child care, may justify adjustments to the original agreement.

A court can set aside a binding financial agreement in certain circumstances, such as non-disclosure of financial resources, lack of independent legal advice for either party, material change in circumstances, or if one party acted under duress. A court order may also occur if the agreement is deemed unfair or unenforceable.

Yes, a binding financial agreement can be terminated if both parties agree in writing or a court order is made to set aside the agreement. Termination typically occurs when the relationship ends or if there’s a significant change in financial circumstances or material matters.

A termination agreement is a written agreement between both parties that cancels or ends a previous binding financial agreement. It effectively removes the enforceability of the original agreement, and both parties must seek legal advice to ensure it complies with the Family Law Act.

No. In Australia, a family lawyer cannot simply ‘sign off’ on a Binding Financial Agreement, because independent legal advice for both parties is a legal requirement. The advice given must be specific to the individual and the actual terms of the agreement.

A lawyer is required to advise their client on how the agreement will affect their legal rights and on the advantages and disadvantages of entering into the agreement at that time. Only after providing this advice can the lawyer sign a certificate confirming that the advice was given. This certificate is a legal requirement.

Because of this, a lawyer cannot ethically or legally ‘just sign’ a BFA without properly reviewing the agreement, understanding the client’s financial circumstances, and providing tailored legal advice.