Binding Financial Agreement – what it is and how to get one

A Binding Financial Agreement (BFA) is a legally recognised way for Australian couples to decide how their assets and finances will be divided without going to court. This page explains what a BFA is, when you need one, what it costs, and how RP Emery’s service works.

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What is a Binding Financial Agreement?

A Binding Financial Agreement is a legally binding contract made under Part ViiiA or Part ViiiAB of the  Family Law Act 1975. It sets out how a couple’s assets, liabilities, and financial resources will be dealt with and it can be made at any stage of a relationship: before moving in together, during the relationship, or after separation.

You may have seen them referred to as:

• Prenuptial agreements or “prenups” – are agreements made before marriage under section 90B of the Family Law Act 1975.
• De facto financial agreements – for couples in a de facto relationship are made under sections 90UB, 90UC or 90UD of the Family Law Act 1975, (except in Western Australia)
• Separation agreements – when used to formalise property division after a relationship ends are made under sections 90C, 90D, or for a de facto couple section 90UD.

All of these are Financial Agreements under the Family Law Act 1975. The term “Binding Financial Agreement” or “BFA” is an umbrella term for all of them.

Why couples get a Binding Financial Agreement

The Family Law Act 1975 gives courts significant power over property and financial arrangements in both married and de facto relationships. A Financial Agreement is how a couple exercises control over that outcome themselves – keeping their arrangements private, out of court, and on their own terms.

The most common reasons couples use a BFA:

• To formalise a property settlement after an amicable separation – without spending thousands of dollars on opposing lawyers;
• To protect assets one or both parties bring into a new relationship;
• To protect children’s inheritance from a previous relationship;
• To record clearly what would happen financially if the relationship ended; and
• To avoid the family costly legal battles.

“I was sceptical at first – I thought if it was this affordable, there had to be a catch. There wasn’t. The process was straightforward and our agreement was certified without any dramas.”  Rita P., Google Review

Situation	Agreement type	Section
Entering a marriage (prenuptial)	Pre-marriage financial agreement	s90B
During a marriage (post-nuptial)	During-marriage financial agreement	s90C
Married, separated but not yet divorced	Separation financial agreement	s90C
Married, finalised divorce	Divorce financial agreement	s90D
Before entering a de facto relationship (not WA)	Pre-cohabitation agreement	s90UB
During a de facto relationship (not WA)	During-relationship agreement	s90UC
De facto, separating (not WA)	De facto separation agreement	s90UD
De facto, any stage – Western Australia only	West Australian Agreements	s205ZN, s205ZO or s205ZP

Western Australia note: De facto relationships in WA are governed by the Family Court Act 1997 (WA), not the Commonwealth Family Law Act 1975. WA de facto couples use either the s205ZN (pre cohabitation) s205ZO (cohabitation) or s205ZP (separation) agreement, which is specific to that legislation. Married couples in WA use the national legislation.

What makes a Binding Financial Agreement legally binding?

A Financial Agreement is only legally binding under the Family Law Act 1975 if both parties have received independent legal advice before signing. This is not optional – it is a legal requirement.

“Independent” means each party has their own separate solicitor – not one solicitor advising both. Each solicitor issues a Certificate of Independent Legal Advice. Without both certificates, the agreement will not be binding and would not survive a court challenge.

The legal advice requirement exists to protect both parties. The solicitor must explain your rights before you sign the agreement, as well as the rights you may be giving up by entering into it. They are also required to advise whether signing the agreement is in your best interests and whether it would be to your advantage or disadvantage. Without this advice your agreement would not be binding.

BFA vs Consent Orders vs Court Proceedings

A BFA is one of several ways to formalise a property settlement. Here’s how it compares.

A BFA is not a Consent Order – they are different legal instruments. A Consent Order requires court approval; a Financial Agreement does not. RP Emery provides Financial Agreements, not Consent Orders.

A Financial Agreement works best when both parties have already reached agreement on how assets should be divided and want to formalise it properly. If you are in genuine dispute, a family lawyer is the appropriate path.

How the RP Emery service works

RP Emery is a legal document publisher, not a law firm, and we do not provide legal advice. However, our panel of lawyers does. We offer a complete two-part system for putting a legally binding financial agreement in place, at a fraction of the usual cost.

Watch this short two minute video to see how our process works

Step 1 – Purchase the kit ($147 for most agreements)

The agreement is the blueprint for documenting your arrangement. Use the top navigation or table to choose the right agreement

Step 2 – Complete your Agreement

You add your personal information to the  template agreement. These are the things you already know about your life – what you own, what you owe and how it will be divided.

Completing the agreement is straightforward process because you will use the resources included in the kit. Resources like:

• a dedicated Members Area;
• sample agreements;
• sample clauses;
• the essential user’s guide;
• access to our friendly customer support.

Step 3 – Submit your draft for review

When your draft is ready, submit it to our team for review. Every draft is personally assessed to make sure it is suitable for our fixed-fee service. Some couples may have more complex arrangements that fall outside the scope of our standard service, or they may be better suited to a different arrangement. If we are unable to accept your agreement under the standard fee, we will explain why.

Step 4 – Legal Review Service ($3,250 for most agreements)

Once your draft is confirmed suitable, two independent family law solicitors – one for each of you – provide the advice required under the Family Law Act 1975, by phone or Zoom. Following the advice session/s, each solicitor issues a Letter of Advice and their Certificate of Independent Legal Advice, the legal instrument that makes the agreement binding. In the vast majority of cases the process completes without issue.

Step 5 – Sign and done

Both certificates are issued, you sign the agreement in front of a witness (preferably a JP), and your Financial Agreement is legally binding. No combative Lawyers, No court and No waiting for court approval.

What does a Binding Financial Agreement cost?

This web site will show you how to make a compliant, legally Binding Financial Agreement (BFA) with Legal advice from two Independent Australian Family Law specialists for just $3,397.

* Superannuation agreements are $197, and combined (de facto and Prenup) agreements are $245
** $3,397 covers most standard two-party agreements. More complex situations – including those involving child support or unusually complex asset structures, may be priced differently. The $3,250 Legal Review Service fee is paid after your draft has been reviewed and confirmed suitable, not at the time of kit purchase. Prices include GST.

Frequently asked questions

Which agreement do I actually need?

It depends on whether you are married or in a de facto relationship, and where you are in the relationship. The table above is a quick reference.

Do we need to go to court?

No. A Financial Agreement does not require court approval to be legally binding. This is one of its key advantages over a Consent Order.

Can everything be done remotely?

Yes – entirely. The kit is downloaded immediately. The draft is submitted online. Solicitor advice sessions are by phone or Zoom. No office visits are required at any stage. The process works whether you are in the same city or on opposite sides of the country.

What if we need to divide superannuation?

Specific kits are available for agreements that include superannuation splitting. If your agreement includes super, your super fund must also review and approve the superannuation section before you can proceed to the legal advice stage which adds some time to the process. The fund is required to respond within 28 days, though timing can vary. SMSF-specific kits are also available.

Is the Certificate of Independent Legal Advice guaranteed?

In the vast majority of cases, yes. In rare circumstances – for example, if a solicitor identifies concerns about duress, undisclosed assets, or a party indicates they are unhappy with the agreement during the advice session – a certificate may not be issued. If that occurs, we will discuss the situation with you directly. It is uncommon.

How long does the process take?

It varies. You control how quickly you complete your draft. Once your draft is reviewed and the Legal Review Service fee is paid, solicitors aim to complete advice sessions within approximately 10 working days. Some couples complete the full process in a week. Others take longer – there is no pressure at the drafting stage.

Can property be transferred using a Financial Agreement?

Yes. In most Australian states, a Financial Agreement enables a stamp duty exemption on property transfers between former partners. The saving can be substantial – often far exceeding the cost of the agreement itself. If property transfer applies to your situation, ask us about this when you make contact.

Is this the same as a Consent Order?

No. A Financial Agreement and a Consent Order are different legal instruments. A Consent Order requires court approval; a Financial Agreement does not. RP Emery provides Financial Agreements, not Consent Orders.

Ready to get started?

Get the kit for your situation – professionally drafted, written in plain English, and used by thousands of Australian couples since 2009.

Use the navigation or table above to find the right kit. Or call us 1800 608 088 – a real person will answer your questions and help you work out which agreement applies to your situation.