Ever heard of a Binding Financial Agreement? You might know it as a prenup—but in Australia, it can be made before, during, or after a relationship ends.

A Binding Financial Agreement (BFA) lets you and your partner agree on how your assets will be divided—without going to court.

It’s a legal document, but we’re here to explain it in plain English—so you know when it’s helpful, how it works, and what to watch out for.

What Is a Binding Financial Agreement?

A Binding Financial Agreement is a written agreement between you and your partner that sets out:

• Who gets what if you separate

• How to divide property, money, super, and even debts

• Whether spousal maintenance will be paid

You can make one:

• Before you move in or get married

• During the relationship

• After separation or divorce

Example 1 – Before Marriage:

John owns a small business and wants to protect it if things go wrong. He and his fiancée Emma make a BFA that says he’ll keep the business if they split. Everything else will be shared fairly.

Example 2 – After Separation:

Amy and Lee separated after 10 years. They agreed on who keeps the house and how super would be split. They formalised it with a BFA instead of going to court.

Why Do People Use a BFA?

• To protect pre-owned assets (like property or a business)

• To avoid court disputes if the relationship breaks down

• To lock in a fair agreement in writing

• To reduce legal costs and stress later on

It gives both people peace of mind—especially if one has more assets.

Is a BFA Legally Binding?

Yes—if it meets legal requirements, including:

• Both people get independent legal advice

• The agreement is signed properly

• Full financial disclosure is made

If not done correctly, it may not hold up in court.

Can You Change or Cancel a BFA?

Yes. You can:

• Make a new one

• Cancel it by agreement

• Ask the Court to set it aside in rare cases (e.g. fraud, unfair pressure)

Is It Better Than Consent Orders?

It depends. A BFA is private and flexible, but:

• Consent Orders are approved by the Court and can offer stronger enforcement

• BFAs can be challenged more easily if not drafted properly

Many people use a BFA when they want control and privacy—especially before marriage.

Final Thought

A Binding Financial Agreement isn’t just for the rich. It’s a smart way for everyday Australians to protect their property and avoid future conflict.

At Aussie Divorce, we explain your options clearly—so you can decide what’s right for your situation.