Family Law
Binding Financial Agreements (BFA)
Binding Financial Agreements (BFA)
A Binding Financial Agreement (BFA) is a legal agreement that sets out how assets, liabilities, and financial resources will be handled if a relationship breaks down. It can be made before, during, or after a relationship.
A properly prepared BFA can reduce uncertainty and future dispute - but it must be done carefully. We focus on making sure the agreement is clear, enforceable, and reflects your genuine intentions, with proper disclosure and risk management.
Understanding Parenting Arrangements
Parenting arrangements set out how separated parents will care for their children, covering aspects like:
Parental Responsibilities:
Parental responsibility refers to all the duties, powers, responsibilities, and authority that parents have in relation to their children, as defined in section 61B of the Family Law Act 1975. It includes making major long-term decisions about the child’s welfare, such as:
- Education
- Health and medical care
- Religion and cultural upbringing
- Living arrangements that significantly affect the child’s development
- Name changes
Living Arrangements:
- Where the children will live and with whom.
- How time will be shared between parents.
- Day-to-day care and supervision.
Communication and Contact:
- How parents will communicate with each other regarding their children, and how they will communicate with their children while the children are in the care of the other parent.
- Arrangements for the involvement and contact of extended family members.
Handover Arrangements:
- When, where and how the children will move between each parent’s care.
Schooling, School Holidays, Travel and Special Occasions:
- Plans for schooling, how school holidays are shared, rules for local or overseas travel, and how time is spent on special occasions like birthdays, Christmas, Easter, and Mother’s and Father’s Day.
Others:
- Parents can agree on their own tailored arrangements based on what works best for their children and unique family situation.
Courts consider the Family Law Act 1975, prioritising children’s safety, stability, and emotional wellbeing. The aim is to encourage cooperative parenting where possible while protecting children from harm.
BFAs Are Often Used To
- Protect assets you brought into the relationship
- Clarify how property, debts, and financial support will be handled
- Manage family wealth, business interests, inheritances, or trusts
- Reduce the risk of costly disputes later
Types of BFAs
Pre-Relationship BFA
A pre-relationship BFA (sometimes called a “prenup”) is designed to set financial expectations before a relationship becomes legally serious (including before marriage or moving into a de facto relationship). It’s often used where one or both partners has significant assets, family wealth, a business interest, or children from a previous relationship.
During-Relationship BFA
A during-relationship BFA can be useful when your financial circumstances change - for example, you purchase property together, receive an inheritance, start a business, or one person steps back from work to care for children.
This type of agreement can help both partners feel secure by setting expectations and protecting major assets while the relationship continues.
Post-Separation BFA
Separated doesn’t always mean “sorted”. If you and your former partner have reached (or are close to reaching) an agreement about property and finances, a Post-Separation Binding Financial Agreement (BFA) can help lock in the deal and reduce the risk of it unravelling later.
This can be especially important when one person is worried the other might change their mind, delay, hide information, or start making new demands once emotions settle - or once new relationships or family pressure enter the picture.
Why Choose Honest Grace Legal?
We understand that financial agreements can feel complex and high-stakes. Our team is here to support you with:
Strategic Advice
Guidance aligned with your goals assets and risk profile
Strong Compliance
Careful disclosure clear terms and proper process to strengthen enforceability
Practical Implementation
Real-world steps and timeframes so the agreement works beyond the paperwork
Common Questions About BFAs
What is a Binding Financial Agreement (BFA), and when can it be made?
A Binding Financial Agreement (BFA) is a legal agreement that sets out how assets, debts, and financial resourceswill be handled if a relationship breaks down. It can be made before a relationship (pre-relationship/prenup), during the relationship, or after separation.
Why do people choose a BFA instead of “sorting it out later”?
A well-prepared BFA can reduce uncertainty and future disputes by clearly setting expectations upfront. People often use BFAs to protect assets brought into the relationship, manage family wealth, business interests, inheritances or trusts, and clarify how property, debts, and financial support will be handled if things change.
What makes a BFA valid and less likely to be challenged?
BFAs must be prepared carefully. We focus on the key factors that reduce the risk of the agreement being overturned later, including clear drafting, full and frank financial disclosure, realistic terms, and practical risk management - especially for post-separation BFAs, where delays, pressure, or missing information can cause agreements to fall apart.
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