A Binding Financial Agreement (BFA) is a legal agreement that allows parties to a marriage or de facto relationship to decide how their financial matters will be dealt with if their relationship breaks down.
Although often referred to as a “prenuptial agreement” or “prenup”, a Binding Financial Agreement can be entered into:
- before marriage or a de facto relationship;
- during a relationship; or
- after separation.
A BFA can provide certainty and assist couples in managing financial issues by setting out how assets, liabilities, financial resources and other matters will be dealt with in the event of separation.
Why Consider a Binding Financial Agreement?
There are many reasons why a person may consider entering into a Binding Financial Agreement.
Common circumstances include:
Protecting Existing Wealth or Assets
A person who has accumulated significant assets before entering a relationship may wish to clarify how those assets will be treated in the event of separation.
This may include:
- property;
- investments;
- shares;
- businesses;
- trusts; or
- other financial interests.
Protecting a Business or Professional Interests
Business owners and professionals may consider a BFA to help manage the potential impact of relationship breakdown on:
- family businesses;
- companies;
- partnerships;
- professional practices; or
- business succession arrangements.
Protecting Inheritances or Family Wealth
Some people wish to preserve family wealth, anticipated inheritances or assets intended to benefit children from a previous relationship.
Providing Certainty for Blended Families
Where a person has children from a previous relationship, a Binding Financial Agreement may form part of a broader financial planning strategy to provide clarity and certainty.
Addressing Significant Financial Differences
A BFA may be appropriate where there is a significant difference between partners in relation to:
- wealth;
- income;
- debts;
- financial resources; or
- future earning capacity.
Reducing the Risk of Future Disputes
Relationship breakdown can be emotionally and financially challenging.
A carefully prepared Binding Financial Agreement may help reduce uncertainty and avoid disputes about financial arrangements in the future.
Who Else May Consider a Binding Financial Agreement?
A BFA may also be considered by people who:
- have substantial debts;
- are entering a second or subsequent marriage;
- wish to protect particular assets;
- have complex financial arrangements;
- wish to address spousal maintenance obligations; or
- want greater certainty about future financial arrangements.
Are Binding Financial Agreements Automatically Enforceable?
No.
Binding Financial Agreements are technical legal documents and strict requirements must be satisfied for an agreement to be binding.
Both parties must obtain independent legal advice about:
- the effect of the agreement on their rights; and
- the advantages and disadvantages of entering into the agreement.
Because of the significant legal consequences, it is important that a BFA is prepared carefully and reflects the circumstances and intentions of both parties.
Binding Financial Agreement Lawyers Melbourne
At Mathews Family Law & Mediation Specialists, our Accredited Family Law Specialists provide advice about Binding Financial Agreements for couples before, during and after relationships.
We assist clients with:
- preparing Binding Financial Agreements;
- reviewing proposed agreements;
- providing independent legal advice;
- financial arrangements following separation; and
- complex family law financial matters.
Our approach combines specialist family law expertise with practical advice designed to provide clarity and certainty.
Contact Mathews Family Law & Mediation Specialists to discuss whether a Binding Financial Agreement is appropriate for your circumstances.
About Vanessa Mathews — Accredited Family Law Specialist
This page was prepared and reviewed by Vanessa Mathews, Principal of Mathews Family Law & Mediation Specialists. Vanessa is an Accredited Family Law Specialist, Accredited Family Dispute Resolution Practitioner (FDRP) and Mediator who practises exclusively in family law. She assists clients throughout Australia with separation, divorce, parenting disputes, property settlements, financial agreements and other complex family law matters.
Helping families resolve conflict through specialist legal expertise and constructive dispute resolution.
Last reviewed: 24 July 2026
Disclaimer: This page provides general information only and does not constitute legal advice. Every family law matter is different and you should obtain advice tailored to
