Binding Financial Agreements in Australia: What You Need to Know Before Marriage

A Binding Financial Agreement (BFA), often called a prenup or postnup, lets couples set out how assets will be divided on separation. Under the Family Law Act, BFAs can save time, cost and uncertainty—but must meet strict requirements. 

1. What Is a Binding Financial Agreement?

A BFA is a private contract between de facto partners or spouses specifying financial and property arrangements if the relationship ends. It can cover property division, spousal maintenance and superannuation splitting.

2. Who Can Enter a BFA?

Eligible parties include:

• Ready-to-marry couples (prenup).
• Married couples at any time (postnup).
• De facto couples (including same-sex partners).

3. Formal Requirements

To be valid, each party must:

• Obtain independent legal advice on the effect and disadvantages.
• Sign the agreement, with each lawyer certifying advice given.
• Ensure all assets and liabilities are fully disclosed before signing.

4. Content & Scope

BFAs can address:

• Division of specific assets (home, bank accounts, investments).
• Spousal maintenance obligations (amount, duration).
• Superannuation splitting percentages or formulas.

5. Enforceability & Variation

Courts may set aside a BFA only in limited circumstances (fraud, unconscionability, failure to disclose). You can vary or revoke an agreement by entering a new signed BFA.

Need Help Drafting Your Agreement?

Contact LawWise Australia for expert drafting, advice on risks and ensuring your BFA meets legal standards.

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