Our Melbourne Binding Financial Agreement lawyers help you protect your assets and avoid costly disputes with tailored, legally binding agreements.
Resolve financial matters privately without court involvement.
Securely protect property and assets through a legally enforceable agreement.
Achieve a clear financial settlement that prevents ongoing disputes.
Separating couples often seek certainty and finality in dividing their property, finances and responsibilities. One option available is a binding financial agreement. These agreements are recognised under the Family Law Act 1975 (Cth) and provide a private contract between parties, setting out how assets, liabilities and ongoing financial support will be managed after separation.
A binding financial agreement (BFA), or family law financial agreement, is a legally binding document that outlines how property and financial settlements are to be carried out after separation or divorce. Such agreements can also be made before or during a marriage or de facto relationship, functioning much like a prenuptial agreement.
They are designed to clarify financial arrangements without the need for court proceedings and must be drafted carefully to ensure they meet strict legal requirements. If the financial agreement complies with the Family Law Act, it becomes a legally enforceable way to divide assets and finalise financial responsibilities.
Although both financial agreements and consent orders deal with financial arrangements, they are different legal processes.
Couples may prefer a binding financial agreement if they wish to keep their financial matters private or avoid the delays and costs associated with the court process.
whether business interests or significant assets are involved.
Typically, the costs include:
While the process may be more expensive upfront than filing consent orders, many parties see it as an investment in protecting assets and securing their financial future.
If you want to create a legally binding financial agreement to divide property at the end of your marriage or de facto relationship, you’ll need to carefully follow the steps to create agreements that are valid and enforceable.
Transfer of assets or debts as per agreement: Assets and debts can be transferred as per your agreement once it has been signed by both parties.
These agreements can address a wide range of financial matters, including:
They can also include provisions for a termination agreement, allowing the financial agreement to be ended if both parties later agree.
Binding settlement agreements are most suitable for:
It’s essential to seek legal advice for any family law matter.
Unlike consent orders, binding financial agreements are private contracts. This means financial circumstances remain confidential, and there is no requirement for public court proceedings. For many people, the privacy of a financial agreement is a significant advantage.
A financial agreement is legally binding only if the strict requirements of the Family Law Act are met. The most critical requirement is that both parties must have received independent legal advice from a qualified legal practitioner and made the agreement free of coercion or fraudulent disclosure. Without this, the agreement will not be enforceable.
A court may set aside an agreement if:
For this reason, financial agreements must be drafted carefully and reviewed by specialist family lawyers.
While binding financial agreements are designed to create certainty, personal circumstances can change. If there are significant changes to financial resources, business interests or ongoing financial support needs, it is advisable to review the agreement. Obtaining legal advice ensures the agreement continues to meet legal requirements and reflect current circumstances.
Our Family Lawyers play a critical role in ensuring that any financial agreement under the Family Law Act complies with all requirements, giving you certainty in your financial future. Get started today by booking an appointment.
Lawyer
Ash is currently working as a Lawyer in our Wills and Estates & Family Law teams.
If you need expert legal advice about making a financial agreement, or are ready to create one, please get in touch with our specialist family law team today.
