What makes a Binding Financial Agreement legally binding?
- BFAs must comply with strict legal guidelines as outlined in the Family Law Act (1975).
- They must be in writing.
- Each person must have received independent legal advice before signing the BFA about the advantages and disadvantages of entering into the Agreement and the effect of the Agreement on their rights.
- Each person must have signed the BFA voluntarily (free from coercion, duress or undue influence). For example, this means one person cannot tell the other that they will not marry them unless they sign a BFA.
- The BFA should contain full disclosure of each person’s financial situation.
