Binding Financial Agreement Lawyer Services
Located in Revesby Servicing South West Sydney
What a Binding Financail Agreement does
BFAs are legally binding private contracts covering a couple’s property division, including how property is treated when dividing assets. It can cover the relationship’s entire asset pool, including:
Business interests.
Financial resources, such as an expected inheritance.
Bank accounts.
Investment properties.
The family home.
Personal debts.
Mortgages.
BFAs can also have provisions for financial support, like spousal maintenance. Agreements made during a relationship may also be described as postnuptial agreements, while one made before marriage is often called a prenuptial agreement. Spouses can enter a BFA during their marriage or after separating. The Family Law Act also allows couples in a de facto relationship to agree to a BFA. Agreements made before marriage are sometimes called a pre-nuptial agreement, and during marriage may be referred to as postnuptial agreements, although that language is more common in the USA.
What Two Decades of BFA Work Has Taught Us
A binding financial agreement lawyer is a qualified legal professional who drafts, reviews and advises on Binding Financial Agreements (BFAs) so they are legally enforceable and suited to your circumstances. A Binding Financial Agreement sets out property and financial arrangements during or after a relationship, including assets, debts, superannuation and financial support, and the Family Law Act regulates these agreements at the federal level in Australia. For married and de facto couples, it is a way to secure future financial arrangements and obligations clearly and decide your own financial terms privately, rather than leaving property division to the courts. If you’re still weighing up whether a BFA is the right option, our guide to what a binding financial agreement is covers the basics before you speak with a lawyer.
“After 20 years, we’ve seen exactly how these agreements succeed and where they fall apart,” says founder Bruce Batey.
Protecting your finances after a relationship breakdown is crucial. But there is no need to wait until after a separation to begin thinking about property matters or financial separation. You can use a binding financial agreement to make financial arrangements at any time, and they are often especially useful where there are children, second relationships, unequal contributions, or complex structures such as businesses and trusts that call for a family law specialist and careful legal support.
Bateys Law Firm has been helping clients in Revesby and South-West Sydney protect their financial future with a BFA for over 20 years. This guide explains what a binding financial agreement is, when it may help, how it differs from consent orders, what the process and costs usually involve, and how these agreements can be changed or brought to an end. Before signing, each party should seek independent lawyers with specific BFA experience so the legal advice covers the full implications of the agreement, including its risks, benefits, and impact on each person’s rights and responsibilities; our team provides those legal services for local clients.
When a BFA may suit you
Our clients have benefited from a BFA for a variety of reasons. Here are some common scenarios where BFAs can be advantageous.
You may be operating a family business and wish to avoid risking losing ownership control. Assets like family trusts and investment properties can be complicated to deal with. A BFA can give you strict control over exactly how you want these assets to be managed.
You and your partner may both have children from a previous relationship. BFAs can provide asset protection and help you balance a desire to ensure your children are taken care of, and the current relationship. Where there are children involved, a BFA can sit alongside broader planning about parenting arrangements while keeping the focus on financial issues. An agreement can reduce the chances of facing disputes that arise from uncertainty.
A court order has to be approved by the Federal Circuit and Family Court of Australia (FCFCOA). That means that the division is out of your hands to some extent. A BFA can give you more control and keep your financial matters private. It can also help you avoid financial proceedings with an ex partner by formalising financial separation privately. If you cannot agree on terms, lawyers may negotiate on your behalf to help reach agreement without going to court.
What makes a BFA legally binding?
Binding financial agreements are governed by the Family Law Act 1975, Part VIIIA for married couples and Part VIIIAB for de facto couples. BFAs have to meet strict legal requirements to be a valid legal document, and family law solicitors must ensure all statutory requirements are addressed for the agreement to be enforceable. This includes the following criteria:
A properly drafted BFA usually involves more formal requirements than consent orders, which is one reason consent orders are often cheaper.
Years of Family Law
A BFA can be set aside if these legal requirements aren't met.
BFAs can also be set aside for broader reasons than consent orders, including:
- One party was coerced into agreeing or agreed under duress.
- Financial disclosure that failed to divulge a material matter.
- There's been a significant change in circumstances related to the care and welfare of a child, causing hardship.
In some cases, disputes about validity can return to the court’s jurisdiction under family law, and an agreement that is not fair based on the circumstances may be challenged, depending on the facts.
How Long Does a BFA Take and What Does It Cost?
In our experience, a binding financial agreement usually takes between two and eight weeks to finalise in Sydney. There is a caveat, though: where parties are in conflict, the process can sometimes drag out to months, and in the worst cases, years. The timing depends on the complexity of your asset pool and how quickly both parties can gather their documentation.
We never rush the drafting. We've seen too many people come to us after a rushed agreement has already caused them serious problems. A BFA that's prepared too quickly is far more likely to be challenged or set aside later, so we take the time to get the wording right. That care upfront is what makes the agreement hold up.
To prepare your agreement, we’ll typically ask you for documents such as recent bank statements, current property valuations, and superannuation details. Having these ready early helps us give you accurate advice and keeps the process moving.
As a general guide, BFAs in Australia often range from around $4,000 to $10,000 or more, depending on the complexity of the asset pool and whether both parties’ arrangements are straightforward. Transparent billing helps you understand the likely legal costs before preparation begins. Because each agreement is different, we’ll talk you through the likely effects and enforceability of your BFA from the outset, so you understand what you’re agreeing to before you sign.
Can a BFA be changed or ended?
A binding financial agreement is designed to last, but it isn’t always permanent. An informal agreement between parties does not offer the same protection as a Binding Financial Agreement. A court may set aside or modify a BFA in limited circumstances, for example where the agreement has become unjust or unreasonable, and separate property settlement steps after divorce can also involve strict time limits. The parties can also choose to end an agreement themselves by signing a Termination Agreement.
A BFA continues to operate after one party’s death and binds their estate, unless it has been terminated. Because life circumstances change through children, new property, or a change in financial position, it’s sensible to review your agreement every 3 to 5 years to make sure it still reflects your intentions.
Consent orders versus BFAs
Clients who are looking to enter a property settlement sometimes struggle to decide whether they should go for a consent order or a BFA. If this is you, here are some factors to consider. Some people prefer consent orders because:
- They typically have lower legal costs.
- They're approved by the FCFCOA and so aren't generally easy to challenge.
- There's a straightforward application process that may be completed without a lawyer.
Our aim is always to negotiate a settlement during a safe and steady process, by maintaining relationships with an eye on your family’s future.
BFAs tend to appeal to parties that:
- Want privacy when managing their finances.
- Need the flexibility to tailor specific clauses.
- Owned considerable assets going into the relationship.
- Have children with a former partner they wish to provide for.
Neither option is necessarily better than the other. It all depends on your situation. If you’re not sure what would work for you, we can help you understand how each may impact your circumstances.
Why clients trust our process
We’ve developed a deep trust with our clients because our family law team approaches cases with compassion and provides steady guidance across family law matters. When you work with us, you benefit from a team led by family lawyers who work predominantly in family law, and we follow a clear process for your peace of mind:
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Disclaimer: This page provides general information only. It is not legal advice. Family law outcomes depend on your circumstances. You should speak with a family lawyer before making decisions about your matter.