What is a Binding Financial Agreement, or ‘BFA’?
A binding financial agreement is an agreement reached between parties about the division of their assets in the event of a relationship breakdown. Binding Financial Relationships are also known as ‘prenup’s’ or ‘financial agreements’ or ‘separation agreements’. They cover all sorts of relationships. Couples might be just about to enter into a defacto relationship or to get married, they might already be in a de facto relationship or married, or they might have already separated. They might be male/female, or same sex relationships. Essentially, the parties have an agreement about how their assets will be divided in the event of a separation, which effectively ousts the Family Court from becoming involved at one party’s instigation at a later date. Typically, BFA’s are entered into so that either one or both parties are able to protect or quarantine assets they own prior to the commencement of the relationship from being divided in the event of a separation.