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.

Both you and your ex-partner are entitled to live in your home after separation regardless of whose name is on the title. You cannot be forced to leave just because the property is not in your name. The only way you can be forced to leave is if the Court orders it.

If you do have to move out, it will not affect your property entitlement. Your rights continue even if you leave. If you fear violence, you should seek advice immediately.

Sometimes one party may seek a sole occupancy order which requires the other party to leave. This allows the remaining spouse to live in the house until the property is divided. This order will usually only be made in exceptional situations where there is domestic violence, threats are being made or if the house has been adjusted because somebody has a disability.

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.

Step 1 – identifying and valuing the assets, liabilities and financial resources of the parties.

Step 2 – assessment of the contributions made by the parties during their relationship.

Step 3 – assessing the future needs of each of the parties.

Step 4 – decide if the proposed division of property fair to both parties.

Spousal, de facto or same sex couple periodic maintenance may be paid when one party has the financial capacity to pay and when the other party is unable to financially support himself or herself adequately.

In determining whether or not periodic maintenance is paid, each party’s financial income and commitments are assessed.

There is a competing obligation upon the courts to ensure that, as far as practicable, any orders made finally determine the financial relationships between the parties. As a result, there is a tendency for periodic maintenance orders to be for a shorter duration.

In addition to the assets and liabilities of the relationship, financial and non-financial contributions, other considerations such as future needs, income earning capacity as well as maintenance concerns will be taken into account when determining a property settlement.

Carol and her school-aged daughter Emily moved to Australia from the United States. Emily settled into school and Carol started in a new job which was a major promotion and pay rise. Meanwhile, unbeknown to Carol, Emily’s father sought and was granted custody of Emily through a Court in the USA. The Court ordered Emily to return to live in the USA. To her surprise, Carol was also told that if she accompanied Emily to the USA it was highly likely she would be arrested and imprisoned. Emily was very upset and confided in her teacher that she was very happy in Australia and wanted to stay with her mother. A timely application to the Australian Family Court enabled Emily to stay with her mother in Australia.

[Case: Emily avoids being returned to the USA]

Peter and Claudia were a fantastic father and daughter team, they spent many hours discussing their favourite sports. Peter was deeply involved with Claudia’s home schooling. He lived with Claudia and her mother. One night, though, Peter returned home from shopping to discover both Claudia and her mother were gone. An urgent application was made to the Family Court of Australia and the Australian Federal Police found Claudia safe in West Australia and a few days later she was home safe and sound with her dad. Peter and Claudia continue to spend many happy hours together today.

If the other parent breaches an order affecting your children, you can:

• use mediation to resolve the problem or
• apply to the Court that the other party has contravened the parenting order.

The Court takes breaches of its orders very seriously. The breaching parent can:

• be referred to a parenting program;
• fined; or
• made to provide “catch up” time.

The breaching parent may show a reasonable excuse. For example, a very sick child may be considered a legitimate reason.

If the orders breached are no longer workable, the Court may order that both parents attend a parenting program, or adjourn the case to consider varying the orders.

Unless your case involves family violence, child abuse or is urgent, family dispute resolution is required before court proceedings about children can commence.

The Court will usually appoint a family consultant to assist and advise parties.

The Court must consider the needs of the child and the impact of the proceedings on the child. The Court must conduct the proceedings so that the child is safeguarded from family violence and abuse. The proceedings should intend to promote cooperative and child focused parenting and should avoid delay and formality.