Binding Financial Agreements (BFA) in Victoria | Legal Property Settlements

A Binding Financial Agreement (BFA) is a type of agreement that permits you and another party to have control over your own property settlement before, during and/or after separation by de facto or divorce.

What is the Agreement?

A BFA sets out what the parties agree will happen with their property, this removes the power of the courts to become included in dividing property or ongoing maintenance claims, such as spousal maintenance. The term of the BFA don’t necessarily need to be fair, not does the property need to be divided in a way that conforms to the usual family law principles.

It is required that the BFA’a comply with the formalities outlined under the Family Law Act 1975 (Cth), and when complied correctly, parties may enter into and make arrangements to formalise the agreement to best suit their circumstances.

When can a BFA be entered into?

In Victoria, a BFA can be entered into prior to a relationship, during and/or after the breakdown of the relationship. These might be referred to as ‘pre-nup’, but Financial Agreements can be entered into at any point in the relationship, not just before marriage. This also includes in de facto relationships, a BFA can be entered into by parties regardless of whether they are married or not.

In the event your circumstance changes, such as having a child, a change in assets, it is vital parties consider renewing or updating the BFA to reflect these changes. The reason being is a significant change in circumstances that results in the BFA having caused one party financial hardship, may be grounds to invalidate the agreement.

Do I require a lawyer?

In order for a BFA to be legally binding, it must comply with the formalities. Prior to signing the agreement, parties must receive independent legal advice from a legal practitioner about:

• The effect of the agreement or their rights; and
• The advantages and disadvantages pf making the agreement.

Its important to note parties must use separate lawyers to obtain this advice.

How can we help?

Our family lawyers are ready to assist you and your legal challenged with professionalism, empathy and legal expertise, contact us today so we may assist you through this process.