A Couples Guide to Binding Financial Agreements (BFAs)
Binding Financial Agreements (BFAs) are legal contracts that help couples (both married and de-facto) manage their financial arrangements in the event of a relationship breakdown. BFAs can be made before cohabitation (pre-nuptial), during cohabitation, or after separation, offering couples flexibility in protecting their assets and ensuring financial clarity.
What is a Binding Financial Agreement?
A BFA outlines how a couple’s assets and financial resources will be divided if their relationship ends. It can also include provisions for spousal maintenance and other financial matters, helping couples avoid court intervention by providing clear, private agreements.
Types of Binding Financial Agreements
- Pre-Cohabitation Agreements (Pre-Nuptial): Created before living together or marriage, these agreements protect assets like property, businesses, or inheritances, reducing potential disputes if the relationship ends.
- During Cohabitation Agreements: These are made while the couple is living together or married. These agreements also protect assets like property, businesses, or inheritances, reducing potential disputes if the relationship ends. They are also used to address changes in circumstances, allowing for updated financial arrangements.
- Post-Separation Agreements: After separation, BFAs formalise asset division and financial support, avoiding costly court proceedings by providing a clear plan for distribution.
Why Consider a BFA?
BFAs offer certainty, allowing couples to control asset division and avoid court. They are cost-effective, flexible, and tailored to meet each couple's specific needs. We are often able to offer a fixed-fee service.
BFAs can be a valuable tool for couples at any stage of their relationship. By understanding the different types of BFAs and their benefits, couples can make informed decisions to protect their financial interests. As always, it is essential to seek independent legal advice to ensure the agreement is legally binding.
Our specialised
family law team is dedicated to helping navigate BFAs, providing guidance and personalised support to ensure financial interests are protected.
Disclaimer: This article is for general understanding and should not be used as a substitute for professional legal advice. Any reliance on the information is strictly at the user's risk, and there is no intention to create a lawyer-client relationship from this general communication.
