Binding Financial Agreements

At Kara Legal, we help clients navigate the complexities of Binding Financial Agreements (BFAs) with clear, practical, and legally sound advice. Whether you're entering a new relationship, getting married, or separating from a partner, a professionally drafted BFA can offer certainty and peace of mind.  

What is a Binding Financial Agreement (BFA)?  

A Binding Financial Agreement is a private contract between couples that outlines how property, assets, liabilities, and financial resources will be divided in the event of separation or divorce. BFAs are available to:  

-Couples entering a de facto relationship.  

-People intending to marry.  

-Married or de facto couples during the relationship.  

-Couples who are separating or have already separated.  

Starting a Relationship? Protect Your Assets with a Binding Financial Agreement  

Entering a new relationship is exciting, but it’s also the right time to consider how your financial future will be managed. A binding financial agreement can help safeguard personal or family assets, investments, superannuation, and business interests.  

Our Legal Services for BFAs Before/During Relationships:  

- Drafting property division agreements tailored to your personal and financial circumstances.  

- Reviewing agreements prepared by your partner’s lawyer.  

- Advising on enforceability and risks.  

- Ensuring the agreement meets the strict requirements of the Family Law Act.  

- Providing independent legal advice and certification.  

Ending a Relationship? A BFA Can Provide Certainty and Closure  

When a relationship breaks down, financial uncertainty can make the process even more stressful. A Binding Financial Agreement after separation allows couples to avoid lengthy litigation by clearly setting out how assets and debts will be divided.

Is a Binding Financial Agreement the same as a prenup?A "prenup" is one type of BFA — made before marriage or a de facto relationship. BFAs can also be made during a relationship or at separation.

Can a BFA be overturned? Courts can set aside a BFA in limited circumstances, such as fraud, duress, or if it wasn't prepared correctly. Getting proper independent legal advice at the time of signing is what protects its enforceability.

Do both partners need separate lawyers? Yes — this is a legal requirement for a BFA to be valid. We can act for one party and refer the other for independent advice.