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.

The Family Law Act provides for binding financial agreements to be made between parties to a marriage, a de facto relationship, or a same-sex couple. These agreements can be made before, during or after the end of the marriage or relationship. Parties entering into a relationship agree on what will happen in the event that they separate. Parties entering into a second relationship or with substantial assets often like the protection of a financial agreement.

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