Binding Financial Agreements in Australia
Are binding financial agreements enforceable in Australia
Are Binding Financial Agreements Enforceable in Australia? (2025 Breakdown)
Yes — Binding Financial Agreements (BFAs) are enforceable in Australia when done correctly.
But poor-quality agreements are often challenged and overturned.
This article gives you the most up-to-date explanation of what makes a BFA enforceable in 2025, including the latest court decisions.
What Makes a BFA Enforceable?
Under the Family Law Act 1975, your BFA must include:
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- independent legal advice for both parties
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- full disclosure
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- voluntary signing (no pressure, no deadlines)
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- proper drafting
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- correct clauses
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- correct certificates
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- no fraud or concealment
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- no significant unfairness
If these criteria are satisfied, BFAs carry the same weight as court orders.
Contact us to access lawyers who specialise in drafting BFA’s.
Why Some BFAs Get Overturned
Here are the most common reasons courts invalidate BFAs:
Pressure or coercion
Signing the night before a wedding is a classic problem.
Inadequate legal advice
Templates + cheap lawyers = high risk.
Poor drafting or overseas templates
American/Canadian prenup templates do not comply with the Act.
Non-disclosure
Hiding assets or debts is fatal.
Significant unfairness
If the agreement leaves one party destitute, courts may intervene.
Key 2020–2024 Case Law You Should Know
Thorne v Kennedy (2017)
— High Court
It has been established that coercion or inequality can invalidate a prenuptial agreement.
Chaffin v Chaffin (2020)
Prenup overturned due to inadequate advice and rushed signing.
Fairbanks v Fairbanks (2022)
BFA upheld because the advice was thorough and voluntary.
Pollard v Weston (2023)
BFA upheld despite unequal contributions — because the process was fair.
Dunstall v Dunstall (2024)
BFA was overturned due to the failure to disclose shares and crypto.
The trend:
Courts uphold well-drafted agreements and strike down sloppy ones.
How to Make Your BFA “Challenge-Proof.”
A strong BFA will include:
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- tailored financial clauses
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- disclosure schedule annexures
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- future inheritance protections
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- full spousal maintenance positions
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- independent legal advice certificates
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- cooling-off periods
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- no rushed deadlines
At Adams United Lawyers, this structure is built into every BFA we draft.
Contact Us for a free consultation
If you want a BFA that actually holds up in court, our fixed-fee drafting includes the proper advice, certificates, and case-law-informed structure required to protect you.
Case Law references:
Federal Circuit and Family Court of Australia
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