Binding Financial Agreements (BFA’s) have been with us since 27 December 2000 with the intention of allowing adults to make their own arrangements for the division of their assets and maintenance on the breakdown of their relationship which will be enforceable.
However, the validity of BFA’s have been consistently challenged in the Family Court. In many cases the Court has made orders setting aside financial agreements.
The Federal Parliament has tried to counter these uncertainties. The laws surrounding financial agreements have been the subject of many amendments over the past decade; however the uncertainty has remained and, some argue, increased.
As the law currently stands, it is not possible to assure any person that a financial agreement will be found binding and that family assets will be protected. Despite the intention behind the original introduction of BFA’s, over time it has become evident that they are not bulletproof.