Binding Financial Agreement After Separation: Fixed Fee BFA Lawyers

Separating is difficult, but dividing your assets does not have to be. You want certainty that your former partner cannot return years later seeking more money or a share of your future success. A binding financial agreement closes that door, providing a clean break so you can move forward.

What Is a Binding Financial Agreement (BFA)?

A binding financial agreement (BFA) is a private written contract between you and your former partner that sets out exactly how your property, superannuation and liabilities will be divided after the relationship ends.

Unlike consent orders, a BFA never goes to court. No judge reads it and no Registrar reviews it for fairness. It sits entirely outside the family court system, which makes it a powerful option for couples who want to keep their financial affairs private and retain full control over the outcome.

BFAs After Separation: Sections 90D and 90UD Explained

The Family Law Act 1975 governs property settlements across Australia. The section that applies depends on your relationship status at separation:

• Section 90D applies to married couples who have divorced.
• Section 90UD applies to de facto couples whose relationship has ended.

Both sections achieve the same legal outcome: they permanently sever your financial ties. The drafting differs slightly depending on whether you were married or in a de facto relationship, and getting this classification right is the first step to a valid agreement.

There are also the below sections to consider:

• Section 90B applies before marriage
• Section 90UB applies before a de facto relationship 
• Section 90C applies during a marriage
• Section 90UC applies during a de facto relationship

Our Fixed Fee BFA Packages

Hourly billing can make legal costs unpredictable. The Legal Drafter instead provides a specialised family law drafting service for a fixed fee: you know the exact cost upfront, with no hidden charges. We draft the entire agreement based on your negotiated terms and turn your documents around within 24 hours, so you can move on sooner.

What Makes a Financial Agreement Legally Binding

A financial agreement is only binding if it meets strict legislative criteria. An informal document signed at home will not survive a challenge. To be legally binding, a BFA must satisfy all of the following:

• The agreement must be in writing.
• Both parties must sign voluntarily, without pressure or coercion.
• Both parties must receive independent legal advice before signing.
• The lawyers must sign a Statement of Independent Legal Advice.
• Each person must keep a copy of the final signed document.

If even one of these requirements is missed, the agreement is invalid and unenforceable.

Independent Legal Advice: Why It Is Mandatory for a BFA

Independent legal advice is the biggest hurdle, and it cannot be skipped. The law requires each party to obtain advice from a different lawyer, who must explain the advantages and disadvantages of the agreement and confirm you understand what you are giving up. This rule exists to prevent people being pressured into unfair deals.

We draft the BFA for you and provide you with advice, then the other party takes the drafted agreement to an independent solicitor to obtain their mandatory certificate. This hybrid approach can save thousands compared with having a firm draft the document from scratch on hourly rates.

BFA vs Consent Orders: Which Is Right for You?

Feature	Consent Orders	Binding Financial Agreement
Court approval	Yes, reviewed for fairness	No court involvement
Mandatory legal advice	Not required	Required for both parties
Typical cost	Lower	Higher, due to advice certificates
Flexibility of terms	Must be just and equitable	Can record unusual or uneven splits

Consent orders are cheaper and simpler for most people: they do not require mandatory lawyers, and the court approves them if the split is fair. BFAs cost more overall because of the advice certificates, but they offer flexibility the court will not allow. If your agreement is highly unusual, a BFA is often the only viable option.

When a BFA Is the Better Option (Super, Spousal Maintenance, Uneven Splits)

The court will decline to approve consent orders it considers unfair. But what if you both genuinely want an uneven split? Perhaps one party keeps the entire business while the other takes all the superannuation, or you agree to a 90/10 division because of an inheritance.

A BFA allows you to bypass the court’s fairness test. As long as both parties receive independent legal advice and sign willingly, you can record almost any arrangement. BFAs are also effective for locking in complex financial terms such as spousal maintenance arrangements that a court might otherwise question.

Why You Need a BFA, Not a Template

Downloading a cheap online template is a serious risk. Family law is complex, and a generic template will not address the specific features of your asset pool. Vague wording gives your former partner grounds to challenge the BFA later, and if the challenge succeeds, the agreement is set aside and you are back to square one.

Precise, purpose-drafted documents are what hold up under scrutiny. To protect your assets and your future, contact The Legal Drafter for a fixed fee binding financial agreement, available Australia-wide.

Frequently Asked Questions

Is a binding financial agreement valid without legal advice?

No, a binding financial agreement is not valid without independent legal advice. The Family Law Act requires each party to receive advice from a separate lawyer, who must sign a Statement of Independent Legal Advice. Without both certificates, the agreement is unenforceable.

Can a BFA record an uneven property split?

Yes, a BFA can record an uneven property split. Because a BFA is not reviewed by the court for fairness, the parties can agree to almost any division, provided both receive independent legal advice and sign voluntarily. This flexibility is a key advantage over consent orders.

How long does it take to draft a BFA?

The Legal Drafter drafts binding financial agreements within 24 hours of receiving your negotiated terms. After drafting, the other party takes the agreement to their own independent solicitor for their mandatory legal advice and certificate before signing, which determines the overall completion time.

This page contains general information only and does not constitute legal advice.