Insights from Doolan Callaghan Family Lawyers on BFAs

 Binding Financial Agreements (BFAs) help couples clearly define how finances will be handled during or after a relationship. In this article, Doolan Callaghan Family Lawyers explain what BFAs cover, why they're important, and how to make sure yours is valid. Whether you're entering a relationship or navigating a separation, a well-prepared BFA can bring clarity and peace of mind. Learn how this respected law firm on the Northern Beaches supports clients in creating fair and legally-sound agreements. 

When couples enter a relationship, talking about finances isn’t always easy. But sorting out financial arrangements early can help avoid stress later. 

One option available under Australian law is a Binding Financial Agreement (BFA). These agreements outline how assets, liabilities, and financial matters will be managed if a relationship ends. 

At Doolan Callaghan Family Lawyers, a trusted law firm on the Northern Beaches, we help families make clear, legally-sound financial arrangements is what they do best. 

Understanding Binding Financial Agreements (BFAs) 

A Binding Financial Agreement is a private contract between two people in a relationship. It sets out how finances will be divided if they separate. It also covers things like spousal maintenance and debt. 

Legal Basis BFAs are governed by the Family Law Act 1975. Sections 90B to 90KA apply to married couples, while sections 90UA to 90UN cover de facto relationships. These laws make BFAs legally enforceable, provided certain conditions are met. 

Types of BFAs -  

  • Before marriage or a de facto relationship begins (also called a prenuptial agreement). 

  • During the relationship, to agree on financial matters while still together. 

  • After separation or divorce, to finalise financial arrangements and avoid going to court. 

Why Consider a Binding Financial Agreement? 

  • Protecting Assets and Financial Interests - A BFA can protect personal assets like property, savings, or a business. It can also safeguard inheritances or future financial gains. 

  • Clarifying Financial Expectations - It helps both parties understand what will happen financially if the relationship ends. That clarity can make day-to-day decision-making easier. 

  • Avoiding Costly Legal Disputes - Without an agreement, dividing finances after a breakup can lead to long and expensive court battles. A BFA provides a clear roadmap, reducing conflict. 

  • Peace of Mind and Financial Transparency - Talking openly about money builds trust. A well-drafted BFA brings peace of mind and sets a solid foundation for the relationship. 

What Can a BFA Cover? 

BFAs are flexible and can be tailored to each couple’s unique situation. 

  • Division of Property and Assets - This includes homes, cars, investments, and other belongings. The BFA can set out who keeps what, and under what conditions. 

  • Financial Support (Spousal Maintenance) - It can specify whether one partner will support the other financially after separation—and for how long. 

  • Liabilities and Debts - BFAs can assign responsibility for existing debts, such as loans or credit cards, and how they will be handled after separation. 

  • Superannuation Interests - The agreement can detail how superannuation will be divided, including whether it will be split or retained by each person. 

  • Inheritance and Family Business Considerations - If one partner expects an inheritance or owns part of a family business, a BFA can protect those interests. 

Legal Requirements for a Valid BFA 

To be legally binding, a BFA must meet strict legal standards. 

  • >Both parties must sign a written agreement for it to be valid. 

  • >Each person must get legal advice from their own lawyer about the effect of the BFA on their rights and whether it’s in their best interests. 

  • >Both lawyers must sign a statement confirming they provided independent advice. 

  • >The agreement must follow the rules in the Family Law Act 1975. 

  • >If someone is pressured into signing, or key information is hidden, the agreement might not hold up in court. 

Can a Binding Financial Agreement Be Challenged or Set Aside? 

While BFAs are designed to be final, they can be set aside in certain situations. 

  • Grounds for Setting Aside Fraud or Non-Disclosure - If one party hid assets or lied, the court can overturn the agreement. 

  • Unconscionable Conduct - If the agreement heavily favours one person in a way that is unfair, it may not hold. 

  • Changed Circumstances - If the agreement causes hardship due to major changes (especially involving children), the court might intervene. 

 

A Binding Financial Agreement isn’t just legal paperwork—it’s a proactive step towards clarity and peace of mind. A BFA helps protect your assets, reduce stress, and provide certainty in case of separation. It’s legally enforceable and flexible when properly drafted. 

The best time to think about a BFA is before it’s needed. Whether starting a life together or looking to finalise arrangements after separation, timely legal advice makes all the difference. 

Doolan Callaghan Family Lawyers is a respected law firm on the Northern Beaches, brings a practical, thoughtful approach to every agreement. They’ll guide you with experience, clarity, and care. 

Contact Today If you're considering a Binding Financial Agreement, start with expert advice. Book a consultation with Doolan Callaghan Family Lawyers. 

Location: Sydney NSW, Australia

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