Family Law: What is a Binding Financial Agreement?

A Binding Financial Agreement (or ‘BFA’) is a written agreement between two or more people, made either before, during or after their marriage or de facto relationship. It sets out how property, financial resources and spousal maintenance will be dealt with in the event of a relationship breakdown.

 A BFA must be compliant with the Family Law Act 1975 (Cth) to actually be ‘binding’. If it is valid, it takes away the Court’s power to deal with any of the financial matters that have already been decided in the agreement. This means that you and your partner can decide the financial circumstances of your relationship and what is to happen in the event of a relationship breakdown.

 The law in Australia sets out a number of requirements that must be met before a BFA can be binding. Failure to meet these requirements means the BFA may not be binding. A non-binding Financial Agreement may still be considered by the Court but does not take away the Court’s power to deal with that particular family law matter in the way a BFA does.

To find out if a BFA is right for you, or if you have any other questions about family law, please do not hesitate to contact us on (02) 9688 6023 or email us at info@franklegal.com.au.

 This article is provided to the reader for general information. It is not legal advice. It was written by Karla Elias and edited by Andrea Spencer.

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