A Binding Financial Agreement (BFA) is meant to protect your assets and give you clarity—but if not done properly, it can fall apart. Here are some of the most common mistakes people make when creating a BFA—and how to avoid them.

1. Not Getting Independent Legal Advice

This is the #1 reason BFAs fail. Australian law requires both people to get legal advice from different lawyers. No shortcuts, no sharing one lawyer. Without this, the agreement is not enforceable.

2. Using a Generic Online Template

Online forms might seem convenient, but every relationship is different. A “one-size-fits-all” agreement can miss important details or include clauses that don’t meet legal standards in Australia.

Example
Tina used a downloadable prenup template before moving in with her partner. It didn’t cover her super, didn’t value their assets, and skipped legal advice. It was later ruled invalid.

3. Not Disclosing All Assets and Debts

If one party hides assets or gives false information about their financial situation, the agreement can be challenged. Full, honest disclosure is essential.

4. Unfair or One-Sided Terms

Courts may set aside a BFA if it’s too lopsided or would cause significant hardship in the future—especially if children are involved. Agreements must be reasonably fair.

5. Pressure to Sign Quickly

A BFA signed just before a wedding, especially under pressure, may be challenged later. Both people need time to think, review, and get proper advice.

Example
Alex’s partner asked him to sign a BFA two days before their wedding. He felt rushed and didn’t get advice. When they divorced, the court said the agreement wasn’t fair or freely made.

6. Forgetting to Update or Review

Circumstances change—children, illness, inheritance, or business success. If your agreement doesn’t reflect your current situation, it may no longer protect you.

Final Tip: Get It Done Properly the First Time

A well-drafted BFA can save you time, stress, and money. But it needs to be clear, fair, and legally sound. Rushing the process can leave you exposed.