Financial Agreement Lawyer

Life happens and relationships change. When couples form or end relationships, uncertainty about money and property can cause stress. Many people want a simple way to protect assets, prevent disputes and make sure each partner is treated fairly.

Revolance Legal offers strategic guidance on binding financial agreements. These agreements allow couples to set out how property, money and debts will be divided if they separate. Our team explains the law in plain language so you understand your options and can move forward with confidence.

What is a Binding Financial Agreement?

A binding financial agreement (BFA) is a contract between partners that sets out how their property and finances will be divided if their relationship ends. BFAs can be made before marriage (often called a pre‑nup), during a marriage or de facto relationship, or after separation.

Under the Family Law Act, a BFA must meet strict conditions to be valid. Each person must receive independent legal advice about the agreement’s effect and advantages and disadvantages. The parties’ lawyers must sign a certificate confirming they provided this advice. The agreement must be voluntary and free from fraud, duress or unconscionable conduct.

Types of financial agreements

• Pre‑relationship agreements: Couples can make an agreement before they marry or start living together. This is useful for protecting assets brought into the relationship or ensuring inheritances stay within a family.
• During the relationship: Partners can enter into an agreement while they are together. This may be appropriate if circumstances change, such as starting a business or receiving a large gift.
• Separation agreements: After separation, parties can avoid court by agreeing in writing to divide property and finances. Once validly executed, the agreement prevents future claims.

Benefits of a Financial Agreement

Financial agreements can:

• Provide certainty and reduce conflict if the relationship ends.
• Protect assets and preserve inheritances or family businesses.
• Give partners control over how property is divided rather than leaving decisions to a court.
• Save time and costs by avoiding litigation.

Many people use BFAs to ensure fairness when partners have unequal assets or children from previous relationships. The agreement can outline how each person’s contributions will be recognised and whether any spousal maintenance will be paid.

Legal Requirements

To be binding, a financial agreement must:

1. Be in writing and signed by all parties.
2. Identify the relevant section of the Family Law Act (sections 90B–90KA for married couples and sections 90UC–90UN for de facto couples).
3. Include certificates of independent legal advice. Each party’s lawyer must certify that they explained the effect of the agreement and the advantages and disadvantages.
4. Be voluntary and fair. Agreements cannot be the result of fraud, duress or undue influence. Courts can set aside agreements that are unjust or where a party failed to disclose assets.

When can a court set aside a financial agreement?

Even if a BFA meets formal requirements, a court may still set it aside in certain circumstances. Examples include:

• A party did not receive proper legal advice or the certificate is defective.
• There was duress, unconscionable conduct or one party exploited the other.
• The agreement was signed to defeat creditors or to avoid payment of child support.
• Circumstances have changed (for example, care of a child) making enforcement impractical.

Courts have discretion to uphold agreements even if technically deficient if the parties intended to be bound. However, they will not enforce an agreement that is manifestly unjust or tainted by fraud.

How To Create A Solid Agreement

Creating a reliable BFA involves more than downloading a template. Steps include:

1. Discuss goals with your partner. Talk openly about assets, debts, income and how you would like them divided. Transparency builds trust and reduces later disputes.
2. Obtain independent advice. Each partner should choose their own lawyer. Revolance Legal provides clear explanations and ensures you understand the agreement’s impact before signing.
3. Disclosure of assets. Both parties must fully disclose all assets, liabilities and superannuation. Failure to disclose can lead to the agreement being set aside.
4. Drafting the agreement. Your lawyer will prepare a detailed document that meets statutory requirements and reflects your intentions. It should cover property division, debts, financial resources and any ongoing support.
5. Signing and certification. After reviewing the draft and obtaining advice, both parties sign the agreement and the lawyers sign certificates. Keep the original safely and provide copies to each party.

Financial Agreements And De Facto Couples

De facto partners can also make BFAs under the Family Law Act. A de facto relationship exists when partners live together on a genuine domestic basis and meet certain criteria such as duration of the relationship, financial interdependence and the presence of childrenaustralianfamilylawyers.com.au. Partners have up to two years after separation to apply for property orders if there is no BFAaustralianfamilylawyers.com.au.

An agreement provides security and prevents the need for court. However, it must comply with the law and be properly executed.

How Revolance Legal Can Help

• We act as both a strategic partner and supportive guide. Our lawyers:
• Explain the benefits and limitations of financial agreements.
• Prepare and review BFAs tailored to your circumstances.
• Ensure all procedural requirements are met, including certificates and disclosure.
• Negotiate terms with your partner’s lawyer to reach agreement efficiently.
• Advise on other options such as consent orders if appropriate.

Frequently Asked Questions (FAQs)

Secure Your Future with Our Guidance

Financial agreements require careful drafting and legal expertise. Revolance Legal offers direct, efficient service while providing compassionate support. To discuss a binding financial agreement or review an existing one, contact us at 02 9266 0688 or email [email protected].