Many people refer to a Binding Financial Agreement (BFA) as a “prenup” or prenuptial agreement.
In Australia, a prenuptial agreement can be legally binding, but only if it is prepared and entered into in accordance with the requirements of the Family Law Act 1975.
A Binding Financial Agreement is a legal agreement that allows couples to set out how their financial matters will be dealt with if their relationship breaks down.
What Should Couples Discuss Before Entering a Binding Financial Agreement?
A Binding Financial Agreement (BFA) is not only a legal document — it is also an opportunity for couples to have open and practical discussions about their financial expectations and future plans.
Before entering into a Binding Financial Agreement, couples should consider discussing important issues such as:
Employment and Financial Contributions
- Who will work during the relationship?
- Will both partners continue working, or will one partner reduce or leave employment?
- How will income, expenses and financial responsibilities be managed?
Children and Family Responsibilities
- Do you intend to have children?
- Are there children from previous relationships?
- How will caring responsibilities be managed?
- How might future parenting responsibilities affect financial arrangements?
Changes in Circumstances
Relationships can change over time. Couples may wish to consider:
- What happens if one partner is unable to work due to illness, injury or disability?
- What happens if a child has additional needs requiring significant care?
- How might unexpected changes affect financial arrangements?
Future Financial Goals
It may also be helpful to discuss:
- retirement goals;
- ownership of property and other assets;
- financial priorities;
- savings and investment plans; and
- expectations about financial independence.
Why These Conversations Matter
A well-prepared Binding Financial Agreement should reflect the circumstances, intentions and priorities of both parties.
Taking the time to discuss these issues openly can help couples make informed decisions and reduce uncertainty about the future.
At Mathews Family Law & Mediation Specialists, our Accredited Family Law Specialists assist clients with Binding Financial Agreements before, during and after relationships. We provide practical advice to help ensure agreements are properly prepared and tailored to each client’s circumstances.
What Can a Binding Financial Agreement Cover?
A Binding Financial Agreement may deal with matters including:
- how property and financial resources will be divided following separation;
- responsibility for liabilities and debts;
- ownership of assets;
- financial arrangements during the relationship; and
- spousal maintenance arrangements.
The agreement can be entered into:
- before marriage or a de facto relationship;
- during a relationship; or
- after separation.
What Makes a Binding Financial Agreement Legally Binding?
For a Binding Financial Agreement to be valid and enforceable, certain legal requirements must be satisfied.
These include:
- the agreement must be in writing;
- both parties must sign the agreement;
- each party must receive independent legal advice from a qualified lawyer; and
- the required legal formalities must be followed.
The purpose of obtaining independent legal advice is to ensure each person understands the effect of the agreement and the advantages and disadvantages of entering into it.
Can a Binding Financial Agreement Be Cancelled or Set Aside?
Yes.
A Binding Financial Agreement may be terminated by written agreement between the parties.
In some circumstances, a Court may also set aside a Binding Financial Agreement, including where legal requirements have not been met or where other circumstances justify setting aside the agreement.
Because of the potential financial consequences, it is important that a Binding Financial Agreement is carefully prepared and reviewed by an experienced family lawyer.
Binding Financial Agreement Lawyers Melbourne
At Mathews Family Law & Mediation Specialists, our Accredited Family Law Specialists advise clients about Binding Financial Agreements before, during and after relationships.
We assist with:
- preparing Binding Financial Agreements;
- reviewing proposed agreements;
- providing independent legal advice;
- advising about asset protection; and
- resolving complex family law financial matters.
Our specialist family law expertise allows us to provide practical advice tailored to your circumstances.
Contact Mathews Family Law & Mediation Specialists to discuss whether a Binding Financial Agreement is appropriate for you.
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 your circumstances.