Protecting Your Future – Understanding Financial Agreements in Relationships
Why Financial Agreements Matter
Relationships are built on trust, love, and shared experiences, but when it comes to financial security, it’s just as important to plan ahead. Many couples hesitate to discuss financial agreements, thinking it’s unromantic or pessimistic. In reality, having a clear plan in place before or during a relationship can actually protect both parties and prevent unnecessary disputes if the relationship ends.
What Are Binding Financial Agreements (BFAs)?
Financial Agreements, commonly known as Binding Financial Agreements (BFAs) or prenups, allow couples to decide in advance how their assets and financial matters will be handled, offering certainty and peace of mind.
These agreements are recognised under the Family Law Act 1975 and can be entered into before, during, or even after a relationship ends. They are commonly used by people who have substantial assets, own businesses, or want to protect their financial interests, particularly if they have children from a previous relationship.
Who Can Benefit from a BFA?
Couples with significant assets
Business owners seeking asset protection
Individuals with children from previous relationships
Anyone wanting financial clarity in their relationship
Key Aspects Covered in a Financial Agreement
A well-drafted Financial Agreement can cover all aspects of a couple’s financial affairs, including:
Property Division – How assets will be distributed
Superannuation – Addressing retirement savings
Spousal Maintenance – Financial support post-separation
Debt Responsibilities – Clarifying financial obligations
Legal Requirements for a Binding Agreement
BFAs are only effective if they are legally binding. Each party must receive independent legal advice before signing, covering:
The agreement’s legal effect
Impact on their rights
Whether it serves their best interests
When Can a BFA Be Challenged?
Despite their benefits, Financial Agreements are not immune to legal challenges. Courts can set aside an agreement if:
Fraud – One party failed to disclose assets (e.g., Barlow & Barlow [2024])
Unfair Terms – Agreements overwhelmingly favouring one party (e.g., Ridgeway & Ridgeway [2024])
Duress – Signed under pressure or undue influence (e.g., Nguyen & Tran [2024])
Why Regularly Updating a BFA is Important
BFAs should be reviewed and updated when significant life changes occur, such as:
Having children
Receiving an inheritance
Major health changes
Get Expert Legal Advice on Financial Agreements
At Jameson Law, we understand that discussing financial agreements can be sensitive. However, taking the time to establish clear financial expectations can prevent legal battles and financial uncertainty.
Whether you are entering a new relationship, planning a marriage, or protecting assets post-separation, our experienced family lawyers will ensure your agreement is fair, legally binding, and tailored to your situation.
Contact Us Today
If you’re considering a Financial Agreement, now is the time to get it right. Contact our team for expert legal guidance and safeguard your financial future.
