What Is a Binding Financial Agreement?
(Explained by Brisbane Family Lawyers at R&G Law Group)
When couples separate — or even before they marry or move in together — they often ask:
“Do we need a financial agreement to protect our assets?”
In Australia, the answer is often yes, and that document is called a Binding Financial Agreement, or BFA.
What Is a Binding Financial Agreement?
A Binding Financial Agreement (BFA) is a private contract between two people that sets out how their property, assets, superannuation, and financial resources will be divided if their relationship ends.
It’s often compared to a “prenup”, but in Australia, a BFA can be made:
Before marriage or cohabitation (to protect pre-existing assets);
During a relationship (to clarify financial arrangements); or
After separation or divorce (to finalise property settlement and spousal maintenance).
BFAs are recognised under the Family Law Act 1975 (Cth) — specifically under sections 90B–90KA for married couples and 90UA–90UN for de facto couples.
Why Do People Make a BFA?
A BFA helps couples:
Avoid court by agreeing privately on financial arrangements;
Protect assets owned before the relationship;
Provide clarity about contributions and future entitlements;
Secure peace of mind, especially for business owners or those entering a second marriage; and
Reduce stress and conflict if separation occurs later.
It’s not just for wealthy couples — it’s about certainty, fairness, and control.
How Is a BFA Different from Consent Orders?
Although both a Binding Financial Agreement (BFA) and Consent Orders can finalise a property settlement, they work quite differently.
A BFA is a private agreement between the parties — it does not require court approval and remains confidential. It allows couples to decide how their property, assets, and finances will be divided without involving the court system. Each person must, however, receive independent legal advice from a qualified Australian lawyer before signing. Their lawyers will each provide a signed certificate confirming that advice was given.
By contrast, Consent Orders are approved and sealed by the Court. Once made, they have the same legal effect as a court order. The Court will only approve Consent Orders if it considers the agreement to be “just and equitable” under the Family Law Act. While Consent Orders provide strong enforceability and are often used after separation, they tend to be less flexible than a BFA because they must satisfy the Court’s fairness test.
In short, a BFA offers more privacy and flexibility, whereas Consent Orders provide court-backed certainty. Which option is right for you depends on your relationship stage, level of trust, and the complexity of your financial arrangements.
Legal Requirements for a Valid BFA
A Binding Financial Agreement will only be valid if:
It is in writing and signed by both parties;
Each party receives independent legal advice before signing;
Each lawyer provides a signed certificate confirming that advice was given; and
Both lawyers are qualified Australian legal practitioners.
Without these steps, the agreement can be set aside by the Court.
When Can a BFA Be Set Aside?
The Court may declare a BFA invalid if there has been:
Fraud, duress, or undue influence;
Non-disclosure of assets or debts;
Significant change in circumstances (e.g. hardship involving children); or
Failure to meet technical legal requirements.
That’s why it’s important to use an experienced family lawyer who can ensure your BFA is properly drafted and compliant.
How We Help at R&G Law Group
At R&G Law Group, our family lawyers in Brisbane assist clients across Queensland to:
Draft and review Binding Financial Agreements;
Advise on fairness, enforceability, and tax implications; and
Ensure your agreement meets all legal standards under the Family Law Act.
We take the time to understand your circumstances and goals — so your agreement truly protects what matters most to you.
📞 Need Clear Advice?
If you’re considering a Binding Financial Agreement — whether before marriage, during your relationship, or after separation — our team can help.
💬 Book your free initial consultation
📍 Level 4, The Greenhouse, 97 Boundary Street, West End QLD
📞 07 3543 2545 | ✉️ info@rglawgroup.com.au