A Binding Financial Agreement (BFA) is an agreement between parties to a marriage or de facto relationship about how their financial matters will be dealt with in the event of a relationship breakdown. It ‘binds’ them in the sense that it is enforceable like any other contract and the parties give up their right to claim under the Family Law Act. It is therefore important to also refer to information on property division. You can find out more in our Property Settlement topic. Whilst the content of the agreement is important it is especially important to appreciate how the law would apply without any agreement. Whether you are at the happy beginning of a relationship or unhappy end you will need to consult a lawyer about this issue. It could be the longest running contract you ever enter.

A BFA can be entered:

• before marriage (often called ‘pre-nuptial’);
• during marriage (before or after separation);
• after divorce;
• before entering a de facto relationship;
• during a de facto relationship; or
• after a de facto relationship separation providing the separation occurred on or after 1 March 2009 in most states. If you are in South Australia or Western Australia especially check for differences in the law.

This Legal Guide on Binding Financial Agreements provides information about entering financial agreements before, during and after a relationship. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.