A Binding Financial Agreement (BFA) is a private contract between you and your former partner that sets out how your property, finances and superannuation will be divided after separation. It can be made before, during or after a relationship or marriage.
Unlike Consent Orders, a BFA is not approved by the court – it is a contract governed by the Family Law Act 1975. However, if done correctly, it is legally binding and enforceable.
A BFA can deal with:
- The division of property and debts
- Spousal maintenance (whether it will be paid or waived)
- Financial arrangements during the relationship (in pre-nuptial or cohabitation agreements)
For a BFA to be valid, both parties must receive independent legal advice from separate lawyers, and the agreement must meet strict legal requirements. If these requirements aren’t followed, the agreement can be set aside by the court.
BFAs are often used when:
- Parties want more flexibility than what the court might approve in Consent Orders
- There is a desire to keep financial matters entirely private
- There is an unequal power dynamic or asset pool and one party seeks to limit claims
However, BFAs can be more complex to draft and may be more vulnerable to challenge if not carefully prepared.
At Make Peace Family Law, we provide tailored legal advice and ensure all legal requirements are met, so your agreement has the best chance of withstanding future scrutiny and giving you peace of mind.
