Our Practice Areas

Binding Financial Agreements

Certainty for your relationship and your future

Your relationship with your spouse or de facto partner is one of the most complex relationships in your life, as it involves sharing the responsibilities of life together. In the event of a break-up, having a Binding Financial Agreement in place can bring clarity and certainty about your rights and responsibilities.

A Binding Financial Agreement (BFA) is a legal document that outlines how finances and assets will be divided in case of separation or divorce. It offers the flexibility of being made before, during, or after a relationship, enabling couples to address property, assets, debts, and other finances outside of court proceedings.

In order for a BFA to be considered legally valid and enforceable, both parties must seek independent legal advice before signing the agreement to ensure that they fully understand its implications and have not been coerced into signing.

We Can Assist With

Our Holistic Approach

We take a pragmatic approach when creating BFAs with the goal of reaching a mutual understanding and agreement on the key terms. Our round-table conferences foster direct communication between the parties, promote transparency, and enable collaborative decision-making. The real-time adjustments, consideration of each party's perspective, and considered compromises all lead to a more tailored and satisfactory Binding Financial Agreement.

Legal Resolution Options

In the rare event that negotiations concerning the terms of a BFA reach an impasse, our dedicated legal team at Ferraro & Singh can provide guidance on alternative avenues for resolution. While BFAs are primarily designed to facilitate private agreements without court involvement, our team can assist in exploring mediation, arbitration, or other dispute resolution mechanisms to help reach a satisfactory conclusion. We prioritise out-of-court settlements and strive to find amicable solutions that align with your best interests and legal rights.

If there has been a significant change in your circumstances since the BFA was created, such as the birth of a child, a substantial increase or decrease in assets, or a change in your financial situation, you may seek to have the agreement set aside or varied by the court. If you consider your BFA may not be legally valid due to reasons such as coercion, fraud, or unconscionable conduct, you may contest the validity of the agreement in court.

Time to consider a Binding Financial Agreement?

Why Create a Binding Financial Agreement?

There are a number of advantages for couples to create a BFA.

If you are looking to create clarity and certainty over the long term, a BFA can be a useful tool in your legal toolkit. In the event of a relationship breakdown a BFA can provide direction for financial considerations, including property ownership, spousal maintenance, superannuation, and more.

A Binding Financial Agreement will allow you to protect your individual assets, investments, businesses, inheritances, and other financial interests. It can stipulate how these assets will be treated in case of separation or divorce.

In Australia, Binding Financial Agreements are recognised under the Family Law Act 1975 (Cth), providing a legally binding framework for couples to arrange their financial affairs. This recognition adds an extra layer of security and enforceability to the agreement.

The uncertainty of what may happen if a relationship ends can cause stress for some people, and prevent couples from confidently facing the future together. A BFA gives you the chance to talk through your concerns together, as well as each partner seeking external advice from a family lawyer. Your relationship may be stronger for having these conversations and going through the legal process.

A BFA allows couples to plan for unforeseen circumstances and establish clear guidelines for financial responsibilities. It can provide peace of mind and reduce uncertainty about financial matters in the long term.

By having a BFA in place, couples can potentially avoid lengthy and costly court proceedings related to the division of assets and financial matters. The agreement provides a legal framework for settling financial disputes outside of the court system.

Unlike court proceedings, which are generally public, a Binding Financial Agreement is a private document between the parties involved. It allows couples to keep their financial arrangements confidential and maintain their privacy.

Our Binding Financial Agreements Team

Olga Tatiana Holguin

Paralegal

Olga Tatiana Holguin

Paralegal

Olga Tatiana Holguin

Paralegal

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