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What are Binding Financial Agreements and Do You Need One in 2025? Binding financial agreements are legally enforceable documents that outline how assets, property, and financial resources will be divided if a relationship breaks down. In Australia, they apply to both married and de facto couples. These agreements can help prevent costly legal disputes and offer peace of mind, especially for people with significant assets, businesses, or children from previous relationships. Understanding Binding Financial Agreements in Australia A binding financial agreement (BFA) is a private legal contract between two people that sets out how financial matters will be handled during or after a relationship. Under the Family Law Act 1975, these agreements can be made: Before a relationship or marriage (commonly known as a prenup) During a relationship After separation or divorce The main goal of a BFA is to avoid uncertainty or conflict if a relationship ends. While it may not be the most romantic topic, it’s a smart legal move especially in 2025, when financial independence and asset protection are more important than ever. Why Do People Enter Into Binding Financial Agreements? There are several reasons why individuals and couples choose to create binding financial agreements: To protect assets acquired before the relationship To safeguard businesses, property, or inheritances To clearly define financial responsibilities To prevent future legal disputes or court proceedings To manage expectations for children from previous relationships For example, if one partner owns a business, a BFA can ensure it remains protected in the event of separation. This can be crucial for business continuity, especially in cases where other family members are involved in the enterprise. For more insight into how divorce or separation can affect your business, this guide from Westpac offers helpful financial considerations. Are Binding Financial Agreements Legally Enforceable? Yes, but only if they meet specific legal requirements. To be legally binding under Australian law, the agreement must: Be in writing and signed by both parties Clearly outline how assets and liabilities are to be divided Include confirmation that both parties received independent legal advice Be compliant with the relevant provisions of the Family Law Act 1975 It’s not enough to draft an agreement yourselves, you must seek advice from a lawyer, which ensures that your interests are protected and that the agreement is enforceable in court if challenged. Binding Financial Agreements and De Facto Relationships BFAs are not just for married couples. In Australia, de facto couples are treated similarly to married couples under the law. If you’re living together and sharing finances, a binding financial agreement can offer clarity and protection should the relationship end. This is especially relevant for people entering a second relationship or bringing significant personal or business assets into a new partnership. Do You Really Need a Binding Financial Agreement? This is one of the most commonly asked questions, and the answer depends on your personal circumstances. Here are some signs that a BFA might be a smart decision: You or your partner own a home, business, or other high-value assets One person earns significantly more than the other You have children from a previous relationship You’re entering into a second marriage or partnership You want to avoid the emotional and financial cost of court disputes Even if you never need to rely on the agreement, having one in place offers security and peace of mind, much like insurance. Common Misunderstandings About BFAs “It’s just for wealthy people.” BFAs are valuable for anyone with assets to protect, not just the ultra-wealthy. “It’s unromantic or pessimistic.” Planning for the future is a responsible act. Just as you take out insurance, a BFA is about preparation, not prediction. “We’re already living together, it’s too late.” You can create a BFA at any stage of a relationship, even after you’ve separated. How a Lawyer Can Help With Binding Financial Agreements Because of the strict legal requirements involved, you should never attempt to draft or finalise a binding financial agreement without legal assistance. At Janson Lawyers , our experienced family law team can help by: Drafting or reviewing a binding financial agreement tailored to your needs Ensuring the agreement meets legal standards and is enforceable Offering independent legal advice, as required by law Helping you understand your rights and obligations We aim to make the process clear, supportive, and as straightforward as possible because protecting your financial future shouldn't be complicated. Final Thoughts: Peace of Mind Starts With the Right Advice If you’re in a relationship and want to protect your assets, plan for the future, or avoid legal battles down the road, a binding financial agreement could be the right solution for you. We understand that every relationship is different, and so are your legal needs. That’s why Janson Lawyers takes the time to provide personalised advice based on your circumstances, no jargon, no stress. Ready to Secure Your Future? Whether you’re starting a relationship, planning a wedding, or already living with your partner, it’s never too early, or too late to take control of your financial future. Get in touch with Janson Lawyers today to find out how a binding financial agreement could protect what matters most to you.

For many Australians, writing a will seems straightforward, especially with so many ‘do-it-yourself’ (DIY) templates and online kits available. But while preparing your own will may look like a way to save time and money, even a small mistake can make the document invalid or cause major disputes later. At Janson Lawyers , we often see the costly problems that arise from DIY will mistakes. Here are five of the most common mistakes people make when writing their own will, and why seeking legal advice is the best way to protect your wishes. 1. Using the Wrong Template or DIY Kit DIY wills are often based on generic templates that don’t comply with Australian legal requirements. What might look like a valid will on paper can actually be rejected by the courts, leaving your loved ones to deal with unnecessary stress and expense. 2. Incorrect Signing and Witnessing A will must be signed and witnessed according to strict rules. If the wrong people witness your will, or if it isn’t signed correctly, the entire document may be declared invalid. This is one of the most common ‘DIY will mistakes’ we see when people attempt to prepare their own documents. 3. Choosing the Wrong Executor An executor is responsible for carrying out your wishes after you pass away. Too often, DIY wills appoint someone who is unwilling, unable, or simply unsuitable for the role. This can lead to conflict, delays and even disputes in court. Want to learn more about what an executor actually does? The Law Handbook SA has a clear explanation of executor responsibilities in South Australia. 4. Forgetting to Update the Will Life changes to marriages, divorces, the birth of children or the purchase of new property, can all impact your will. Common ‘DIY will mistakes’ are failing to update the document after these events, leaving outdated instructions that may no longer reflect your wishes. 5. Overlooking Complex Assets or Family Situations Homemade wills rarely cover complex situations such as blended families, businesses, overseas property or superannuation. These oversights often result in will disputes, leaving your family to face drawn-out and expensive legal battles. Why DIY Will Mistakes Can Be Costly Writing your own will might feel like a simple task, but the risks of getting it wrong are high. From invalid documents to costly disputes, ‘DIY will mistakes’ can cause far more pain and expense than they save. A qualified wills and estates lawyer can ensure your will is valid, up-to-date and tailored to your personal circumstances. At Janson Lawyers , we help clients across Christies Beach and Adelaide’s southern suburbs prepare wills that provide peace of mind for the future. Don’t leave your estate to chance, contact Janson Lawyers today and let us help you get it right.

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