Prenups Aren’t Just for Celebrities:

How BFAs Can Protect Your Family’s Wealth in Australia

Why Talk About Money Before Marriage?

You’ve built wealth — or your family has. Maybe you’re set to inherit property, or your parents have established a family trust. Then love comes along. A serious relationship or marriage begins.

But what if things don’t work out?

A Binding Financial Agreement (BFA) — Australia’s version of a prenup — can mean the difference between a smooth separation and a costly dispute. For families with trusts, inheritances, or business interests, the stakes are even higher.

What Is a BFA?

A Binding Financial Agreement is a legally enforceable contract that outlines how property, money, and liabilities will be divided if a relationship breaks down. It applies to both married and de facto couples.

It can be made:

• Before marriage or cohabitation (commonly called a “prenup”)
• During the relationship
• After separation

Why Wealthy Families Use BFAs

Protecting Inheritance and Trust Assets
If your family has built or plans to pass down a trust or investment portfolio, a BFA can help ensure those assets stay within the family and are not subject to division under family law.

Avoiding Separation Disputes
With a clear agreement in place, a BFA can help avoid litigation, legal costs, and emotional strain during a relationship breakdown.

Clarity in Blended Families
If one or both partners have children from prior relationships, a BFA can clearly define what is protected for each family group.

Safeguarding Business Interests
For individuals with business ownership or family company shares, a BFA can prevent separation from triggering complex commercial disruption.

Case Study

Lucas is set to inherit $4 million in property and shares via a family trust. He’s engaged to Emma, who he loves deeply — but his parents are concerned about long-term asset protection.

Their lawyer recommends a BFA before marriage. It ensures:

• The family trust and future inheritance are clearly excluded from division
• Both parties receive independent legal advice
• Emma is also protected with a fair fallback arrangement if the relationship breaks down

The result: a fair, transparent plan that protects family wealth and respects the relationship.

_________

FAQ

Q: Are prenups enforceable in Australia?
A: Yes, if done properly. Both parties must receive independent legal advice, and the agreement must be clear, fair, and compliant with the Family Law Act 1975.

Q: Can we do this after marriage?
A: Yes. A BFA can be made before, during, or after marriage or a de facto relationship.

Q: Will this offend my partner?
A: It depends on how the conversation is framed. Many couples today see BFAs as smart, respectful planning — particularly in second marriages or when significant family assets are involved.

Q: Will a BFA fully protect trust assets?
A: It helps — but it’s not foolproof on its own. A properly structured trust combined with a well-drafted BFA offers the strongest protection.

(Note: This article provides general information only and does not constitute legal advice. You should seek advice from a qualified professional before acting on any of the information contained herein.)

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