Binding Financial Agreement Lawyers Melbourne

A Binding Financial Agreement is a private legal contract between two people in, or about to enter, a marriage or de facto relationship. It is governed by Part VIIIA (married couples) or Part VIIIAB (de facto couples) of the Family Law Act 1975 (Cth). A BFA sets out how assets, liabilities, superannuation, and financial resources will be divided if the relationship ends. Unlike consent orders, a BFA does not need to be approved by the Federal Circuit and Family Court of Australia, but it is only legally binding if both parties received independent legal advice and the agreement was properly executed.

The cost depends on the complexity of the agreement, primarily the number and type of assets involved, whether superannuation splitting is required, and whether any negotiation is needed. A straightforward pre-marriage BFA with limited assets will be less expensive than a mid-relationship or post-separation agreement involving a business, investment properties, and superannuation. Pearsons provides a clear fixed-fee estimate after your initial consultation. Your first appointment is free – call 1300 699 688 to get started.

A standard BFA takes four to eight weeks from initial instruction to execution, assuming both parties co-operate and obtain independent legal advice promptly. Post-separation BFAs can sometimes be completed more quickly if both parties are motivated to finalise the matter. We recommend starting the process well in advance of any deadline (such as a wedding date) to avoid the legal risks associated with agreements signed under time pressure.

Yes. The Family Law Act 1975, sets out specific grounds on which the Federal Circuit and Family Court of Australia can set aside a BFA. These include: a party entered the agreement by fraud or failed to disclose material information; the agreement was made to defraud or defeat a creditor; unconscionable conduct at the time the agreement was made; or a material change in circumstances relating to the care, welfare, or development of a child of the relationship that would cause hardship. An agreement that was not properly executed, including where independent legal advice was not genuinely provided, can also be voided. Pearsons’ drafting process is structured to address each of these risks.

Under Part VIIIAB of the Family Law Act 1975, de facto couples (including same-sex couples) have access to the same property settlement and financial agreement frameworks as married couples, provided the relationship is of two years or more, or there is a child of the relationship. A BFA for a de facto relationship operates in the same way as one for a married couple and requires the same procedural steps, including independent legal advice for both parties. If you are in a de facto relationship and want to protect your assets or clarify financial arrangements, we can advise you on the right type of agreement.

Both a BFA and consent orders can finalise the financial aspects of a separation, but they work differently. Consent orders are filed with and approved by the Federal Circuit and Family Court of Australia, giving them the same force as a court order and allowing enforcement through the court registry if breached. A BFA is a private contract that takes effect without court approval, it is faster and more private, but enforcement if breached requires separate court action. For post-separation matters where both parties agree on terms, Pearsons can advise which option best fits your circumstances and risk tolerance.