Binding Financial Agreements in Hawkesbury

A Binding Financial Agreement (BFA) is a legal document that sets out how assets and financial resources will be divided if a relationship ends. By signing a BFA, both parties waive their right to future claims under the Family Law Act and instead agree on a predetermined division of property and finances.

A BFA functions similarly to a prenuptial agreement in the U.S., which provides a structured plan for asset division in case of separation.

While often referred to as a "prenuptial agreement," the Australian equivalent is a Binding Financial Agreement. Like a prenup, a BFA allows couples to outline asset division, including superannuation, but it is governed by Australian Family Law.

A BFA isn’t limited to those planning to marry. It can be made before, during, or even after a relationship ends.

Yes, de facto couples, including same-sex partners, can enter into a BFA. This agreement provides a clear framework for dividing assets if the relationship breaks down.

For a BFA to be legally valid, it must be in writing, signed by both parties, and each must have received independent legal advice. If these requirements are not met, the agreement may be unenforceable and could be overturned by the court.

Yes. For a BFA to be legally binding, both parties must obtain independent legal advice. Each person must consult their own lawyer, who will explain the agreement’s impact on their rights, as well as any potential benefits and risks. The agreement must be signed voluntarily after receiving legal advice, and once signed, it becomes legally enforceable.

A BFA provides clarity and security by setting out how property and assets will be divided if the relationship ends. It can protect pre-existing assets and future inheritances, preventing disputes and reducing the likelihood of legal battles. A well-drafted BFA allows couples to avoid default Family Law provisions, provided the agreement remains valid and is not later set aside.

Technically, you can draft your own Binding Financial Agreement (BFA), but it is not advisable.

A BFA must meet strict legal standards under Australian law. The Family Law Act requires both parties to obtain independent legal advice before signing. This advice must explain the impact of the agreement on each party’s rights, as well as its benefits and risks. Without legal advice, the agreement is unlikely to be enforceable.

If a BFA is not correctly drafted, it could be challenged in court, leading to disputes, delays, and additional costs. Given the complexity of financial matters, seeking guidance from experienced family lawyers at Kells ensures your agreement meets legal requirements and fully protects your interests.

While a BFA helps protect financial assets, poorly prepared agreements can face legal challenges. If a BFA does not meet legal requirements, involves duress, fails to disclose assets, or is deemed unfair, the court may set it aside.

Additionally, BFAs may not account for future changes, such as financial shifts or the birth of children, which could require revisiting the agreement. With the right legal advice, these risks can be minimised, ensuring the agreement remains fair and enforceable.

A properly drafted BFA provides peace of mind, but it must be carefully structured with legal guidance to avoid future complications.

The cost of a BFA depends on the complexity of the assets, the level of negotiation required, and the need for independent legal advice for both parties.

At Kells, we recognise that cost is a key consideration. We provide high-quality legal services at competitive rates and offer a clear estimate based on your circumstances. This ensures you receive expert legal advice while keeping costs manageable.