Prenuptial Agreements known as Binding Financial Agreements (BFA) in Australia are recognised and valid. BFA’s allow couples to determine how their assets, debts, and financial resources will be divided in the event of separation or divorce. However, BFA’s will not be suitable for all couples.

Given the legal complexities associated with BFA’s, it is crucial for individuals to seek independent legal advice from a specialist family lawyer before entering into such agreements. A lawyer can guide you through the process, explain the legal implications, ensure the agreement complies with the relevant legal requirements and protect your interests.

BFA’s are legally binding documents provided they meet the requirements set out in the Family Law Act 1975 (Cth). The BFA can cover financial matters including property divisions, spousal maintenance, superannuation and other financial resources.

Prior to signing a BFA each party must fully disclose their financial position and receive independent legal advice. BFA’s must be entered into voluntarily and without coercion or undue influence. It is important that both parties fully understand the agreement terms and implications before signing.

To ensure that BFA’s remain valid the document should be regularly reviewed and updated as circumstances change during a relationship. It is recommended that the agreement be reviewed periodically or in certain situations such as the birth of a child, significant changes in income or the acquisition of new assets.

Whilst BFA’s are generally binding, the court retains the discretion to set aside or vary an agreement if it is deemed to be unfair or unconscionable. The court will consider factors such as significant changes in circumstances, inadequate disclosure of assets, coercion or undue influence or situations where enforcing the agreement would not be just and equitable in all the circumstances.

Seeking legal advice from a specialist family lawyer is crucial to ensure the agreement meets legal requirements and safeguards the rights and interests of both parties.