Drafting a Binding Financial Agreement requires precision, thoroughness, and a deep understanding of Australian family law. At Reid+Alexander Lawyers, our family law team prepares BFAs that are tailored to each client's unique financial circumstances, ensuring the agreement is comprehensive, enforceable, and provides genuine protection.
Why Professional Drafting Matters
A Binding Financial Agreement is only as strong as its drafting. Australian courts have set aside numerous BFAs due to technical deficiencies, ambiguous language, or failure to comply with the strict requirements of Part VIIIA of the Family Law Act 1975. Common drafting pitfalls include:
- Vague or incomplete descriptions of assets, liabilities, and financial resources
- Failure to address future contingencies such as the birth of children, changes in income, or acquisition of new assets
- Inadequate treatment of superannuation interests, trust assets, or company structures
- Provisions that may be considered unconscionable or contrary to public policy
Professional drafting by an experienced family lawyer significantly reduces the risk of a BFA being challenged or set aside at a later date.
What We Include in a BFA
Every Binding Financial Agreement we prepare is carefully structured to address the full scope of the parties' financial affairs. Depending on your circumstances, a BFA drafted by Reid+Alexander Lawyers will typically cover:
- Identification and valuation of all existing assets, liabilities, and financial resources of each party
- Provisions for the division of jointly held property and individually owned assets
- Treatment of superannuation interests, including any agreed splitting arrangements
- Spousal maintenance obligations or waivers
- Arrangements for assets held through trusts, companies, or partnerships
- Provisions addressing potential future changes in circumstances
- Dispute resolution mechanisms in the event of disagreement about the agreement's interpretation
Full and frank financial disclosure by both parties is a prerequisite to a valid BFA. We work with you to compile a comprehensive schedule of assets and liabilities that forms the foundation of the agreement.
Our Drafting Process
We follow a structured process to ensure your BFA is thorough and fit for purpose:
- Detailed instructions: We meet with you to understand your financial position, your objectives, and any specific concerns you wish the agreement to address.
- Financial disclosure compilation: We assist you in preparing a complete disclosure of your financial circumstances, which will be annexed to the agreement.
- Preparation of the draft: Our lawyers draft the agreement, incorporating all agreed terms and ensuring compliance with legislative requirements.
- Negotiation and revision: Where the other party proposes amendments, we negotiate on your behalf and revise the draft as needed to reach a workable agreement.
- Finalisation and execution: Once both parties are satisfied with the terms, we coordinate the signing process, including the provision of independent legal advice and solicitor's certificates.
Key Considerations in BFA Drafting
Several factors can influence the complexity and cost of drafting a Binding Financial Agreement. These include the number and nature of assets involved, whether there are business interests or trust structures, whether the agreement is being prepared before or after a relationship, and whether children are involved.
It is also important to consider whether the agreement should include provisions for periodic review or variation, particularly for agreements entered into before marriage where circumstances may change significantly over time.
"The investment in having a BFA properly drafted is modest compared to the cost and uncertainty of litigating a property dispute in court."
To discuss your BFA drafting requirements, contact Reid+Alexander Lawyers for a confidential consultation with one of our family law specialists.