Love and relationships can get messy, but money doesn’t have to be. A Binding Financial Agreement (BFA) isn’t just a prenup for the rich and famous; it’s your relationship’s quiet guardian, letting you define “fair” on your terms before life throws a curveball.
Imagine you’ve found the one, you’re building a life together and then — bam — the what-ifs creep in. What happens to your hard-earned savings, that family heirloom, or your business you started before they came along, if things go south? A Binding Financial Agreement (BFA) isn’t just a prenup for the rich and famous; it’s your relationship’s quiet guardian, letting you define “fair” on your terms before life throws a curveball. In today’s world, asking your partner to have a BFA is increasingly viewed as a proactive, responsible step rather than a sign of mistrust. Far from predicting the end of a relationship, initiating this conversation is about financial transparency and mutual protection.
UNDERSTANDING FINANCIAL AGREEMENTS: WHAT THEY ARE AND WHY THEY MATTER
alking about money in a relationship isn’t always easy. Whether you’re moving in together, planning a wedding, building a life as partners, or redefining your relationship after separation, conversations about finances can feel often uncomfortable, sometimes even confronting. However all relationships can benefit from clarity, transparency and mutual understanding. Because clear expectations don’t weaken a relationship — they can protect it.
MORE THAN A “PRENUP”
When people hear the term “prenup”, it often brings to mind celebrity relationships or high-net-worth couples. But in reality, financial agreements are for anyone who wants to feel secure and aligned in their relationship. In Australian family law, these agreements are called Binding Financial Agreements (BFAs).
And importantly, they are available to: married couples, de facto couples and couples at any stage of their relationship. BFAs recognise that every relationship is different and allow you to create an agreement that reflects your life, not a one-size-fits-all model.
WHAT IS A BINDING FINANCIAL AGREEMENT?
A Binding Financial Agreement is a legally enforceable document that sets out how assets, liabilities and financial resources will be divided in the event of a relationship ending.
WHY FINANCIAL AGREEMENTS CAN BE IMPORTANT
There are situations where additional clarity can be incredibly valuable, such as:
- Protecting assets built independently before the relationship
- Clarifying financial arrangements in blended or chosen family structures
- Supporting parenting arrangements that may not follow traditional models
- Safeguarding business interests or shared investments
- Creating certainty where legal recognition may differ across time or circumstances
A BFA allows you to define what fairness looks like for your relationship, not what a court might assume later.
WHAT MAKES A BFA LEGALLY VALID?
A Binding Financial Agreement must meet strict legal requirements to be enforceable, these include:
- The agreement must be in writing and signed by both parties
- Each person must receive independent legal advice
- There must be full and honest financial disclosure
- The agreement must comply with the Family Law Act
Because of these requirements, it’s essential that BFAs be prepared carefully under the guidance of an experienced family lawyer. Despite this, however, a BFA is more than just a legal document, it’s a way to create clarity, protect what matters and move forward together with confidence.
This article has been written by By Jacqui Curtis, Director and Family law specialist from Parker Coles Curtis. They are committed to helping LGBTIQ+ people navigate challenging situations, ensuring a safer future for everyone. If you need support, advice or representation, you can book a free confidential 15-minute chat with them by calling 02 5114 2660.
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