Hillwest Legal prepares and advises on binding financial agreements (BFAs) for clients across the Hills District and Greater Western Sydney. A BFA is a legally binding contract made under the Family Law Act 1975 (Cth) that sets out how assets, liabilities and financial resources will be dealt with if a relationship ends. BFAs can be entered into before, during or after a marriage or de facto relationship and they don't require court approval.
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Our BFA services
Drafting
We draft binding financial agreements tailored to your specific circumstances covering property, assets, debts, superannuation and any other financial matters the parties wish to address.
Independent legal advice
For a BFA to be enforceable, each party must receive independent legal advice from a separate solicitor. If your partner has had a BFA drafted and you need advice before signing, we can provide that independent advice.
Prenuptial agreements
A prenuptial agreement is a BFA made before marriage. It typically protects pre-existing assets and defines how property will be divided if the marriage ends.
Post-nuptial agreements
A post-nuptial agreement is a BFA made during a marriage or de facto relationship. It's used to formalise financial arrangements while the relationship is ongoing.
Separation agreements
A separation agreement is a BFA made after a relationship has ended. It sets out the agreed property split without the need for court proceedings.
Superannuation splitting
Superannuation can be split as part of a BFA. The process requires specific procedural steps, including obtaining information from the super fund and including a superannuation splitting agreement within the BFA.
How a binding financial agreement works
A BFA is a private agreement between two people in a relationship married or de facto. It deals with the division of property and financial resources, and can also address spousal maintenance. Unlike consent orders, a BFA doesn't go to court and doesn't need judicial approval.
For a BFA to be legally binding, three key requirements must be met:
- The agreement must be in writing and signed by both parties.
- Each party must receive independent legal advice from a separate solicitor about the effect of the agreement on their rights and about the advantages and disadvantages of the agreement.
- Each solicitor must sign a certificate confirming that the advice was provided.
If these requirements aren't met, the agreement may be set aside by a court.
When you might need a BFA
Before getting married. A prenuptial agreement protects assets you're bringing into the marriage such as property, a business, or an inheritance.
During a relationship. A post-nuptial agreement formalises financial arrangements while you're still together for example, if one partner receives an inheritance or starts a business.
After separation. A separation agreement is a BFA made after the relationship has ended. It's an alternative to consent orders and is entirely private.
When your partner has a BFA for you to sign. You need your own solicitor to provide independent legal advice before you sign. This is a legal requirement, not optional.
BFA vs consent orders
BFAs are private agreements. They don't require court approval, are quicker to finalise, and remain confidential. However, they can be more vulnerable to challenge if the requirements weren't properly met at the time of signing.
Consent orders are court-approved. They carry the force of a court order and are enforceable through the court. The court must be satisfied that the orders are just and equitable before making them.
We help you decide which path is right for your situation. Where property and parenting matters both need to be resolved, consent orders may be more appropriate because BFAs cannot deal with parenting arrangements.
Frequently asked questions about binding financial agreements
Related services
- Consent orders Court-approved alternative to BFAs.
- Property transfer Transferring property after a financial agreement.
- Will and power of attorney Update your estate plan after entering a BFA.
The information on this page is general in nature and does not constitute legal advice. For advice specific to your circumstances, please contact us directly.