A Binding Financial Agreement (BFA) only works if it meets certain legal standards. Otherwise, it can be challenged or even thrown out by a court. This guide explains what’s required to make your BFA enforceable under Australian family law.

1. It Must Be in Writing

Verbal agreements won’t stand up in court. A BFA must be written down and signed by both parties. This ensures there’s a clear record of what was agreed.

2. Each Person Must Get Independent Legal Advice

This is a must. You and your partner need to:

• Get advice from different lawyers

• Understand what the agreement means for your legal rights

• Get a signed certificate from your lawyer confirming the advice

Without this step, your agreement isn’t legally binding—no matter how fair it seems.

3. You Must Disclose All Assets and Debts

Full financial transparency is essential. If either party hides assets or income, the agreement can be challenged later for being misleading or unfair.

4. No Pressure or Coercion

The agreement must be made freely. If someone was pressured, rushed, or manipulated into signing, a court may set the agreement aside.

5. Both Parties Must Sign

No signatures? No agreement. It’s that simple. Both parties must sign after receiving legal advice—not before.

Example of What Can Go Wrong

Sophie and James created a BFA using an online template and signed it themselves without getting legal advice. When they broke up, Sophie tried to rely on it in court—but the judge ruled it invalid because they hadn’t met the legal requirements.

Can the Court Set Aside a Binding Financial Agreement?

Yes—but only in certain situations, such as:

• The agreement was made with fraud or dishonesty

• One party was forced or misled

• There’s been a major change (e.g., a child’s illness or disability)

• The agreement has become impractical or unfair

Final Thought: Don’t Cut Corners

BFAs can protect your future—but only if done properly. Trying to save time or money by skipping legal advice can end up costing you far more later.