Are Binding Financial Agreements Valid After Separation? Step-by-Step Guide

The process of separation can complicate financial issues, especially if the couple has multiple joint accounts. A BFA is one of the main tools used to overcome these issues. Some people, however, wonder if BFAs are still valid once separation happens. Through this blog, we guide you through what makes a BFA valid, how the process works with the assistance of  financial agreement lawyers in Perth, and the practical steps to take after separation in Australia.

What Is a Binding Financial Agreement?

A Binding Financial Agreement (BFA) is a contract between parties in a relationship—married or de facto—who agree in writing how property, money, and other assets are to be divided if the relationship breaks down.

A BFA can be executed:

• Before marriage or living together (pre-nuptial or cohabitation agreement),
• While in the relationship,
• Or after the separation of the relationship (post-separation or post-divorce agreement).

Skilled binding financial agreement lawyers Perth frequently work with couples after the breakdown to draw up and sign BFAs in order to prevent litigation and facilitate a smoother transition financially.

Are BFAs Binding After Breakup?

Yes, BFAs are binding after separation as long as they meet the requirements laid out in the Family Law Act 1975. The agreement must:

• Be signed by both parties,
• Be accompanied by independent legal advice to both parties (with signed certificates),
• And not be obtained through fraud, duress, or undue influence.

A post-separation BFA is beneficial to prevent court delays and expenses. Settlement lawyers for finances assist the separated parties through this complex process while safeguarding their rights and interests accordingly.

Step-by-Step Guide to Creating a BFA After Separation

Below is a step-by-step guide on how to enter into an appropriate Binding Financial Agreement after separation in Australia.

Step 1: Obtain Independent Legal Advice

Both individuals need to be provided with independent legal advice before they sign a BFA. This is for the purpose of making sure that the agreement is fair and legal and cannot be reversed in the future. The divorce separation lawyers Perth provide confidential guidance on your situation.

Step 2: Full Financial Disclosure

You and your ex-partner have to make full disclosure of all your assets and liabilities, which include:

• Property,
• Superannuation,
• Business interests,
• Debts and loans,
• Personal belongings of significant value.

Non-disclosure voids the BFA or makes it vulnerable to challenge by a court. It is an important step where the services of the best property settlement lawyers guarantee transparency and fairness.

Step 3: Drafting the Agreement

The agreement is required to make the following explicit:

• How the property and liabilities will be shared,
• Any orders for spousal maintenance,
• Superannuation splitting (if necessary),
• What happens to jointly owned assets?

Your solicitor will prepare a custom-made agreement in line with your instructions and financial position. The lawyers who specialise in financial settlements are adept at preparing binding agreements that protect your economic interests.

Step 4: Review and Sign

When the agreement is finished:

• Both parties need to have their lawyer read over the document.
• Make any changes required.
• Sign the agreement and obtain a legal advice certificate from their respective lawyers.

The certificate ensures that both parties have received suitable legal advice—a legal necessity under the Family Law Act.

Step 5: Protect and Enforce the BFA

After signing:

• Retain the original BFA and legal advice certificates in safe custody
• Notify institutions where appropriate (e.g., banks, super funds)
• Commence putting this agreement into effect (e.g., property transfers, payment of debts).

Binding financial agreement lawyers Perth also help in liaising with financial institutions to ensure that everything goes on as planned.

When Can a BFA Be Challenged?

Although BFAs are contractually binding, they can be set aside in court if:

• A party did not receive independent legal advice,
• The agreement was made by compulsion or coercion,
• There has been a significant change in circumstances (e.g., the needs of the child changed),
• A party concealed significant financial information.

Approaching divorce lawyers Perth early on will make your BFA solid and avoid the risk of future legal dilemmas.

Conclusion

So, are Binding Financial Agreements binding on separation? Yes—but only if and only if they satisfy legal criteria. A properly drafted BFA is one of the fastest means of settling property and financial issues on relationship breakdown. It’s critical, however, to engage the appropriate experts at each stage.

If you’re facing separation and you want to protect your financial future, expert binding financial agreement lawyers Perth and financial settlement solicitors are here to assist you. From negotiation to finalisation, they walk you through the process with care and legality.