(Comprehensive Family Law Breakdown)
Introduction
A prenuptial agreement, known legally as a Binding Financial Agreement (BFA) in Australia, provides a clear financial structure for couples before marriage, during marriage, or while in a de facto relationship. When drafted correctly, it protects key assets, including property, businesses, superannuation, and inheritances. However, there are also limits on what a prenup can control under the Family Law Act 1975.
This guide explains exactly what Australian prenups can protect — and what they cannot — and how to structure an agreement so it remains enforceable.
For a full overview of prenups, visit our main guide:
👉 https://www.adamsunited.com.au/prenuptial-agreement-australia/
What a Prenuptial Agreement Can Protect in Australia
A legally compliant BFA can protect a wide range of financial interests when properly drafted and supported by independent legal advice.
1. Property Owned Before the Relationship
A prenup can secure:
• Homes
• Investment properties
• Landholdings
• Renovation contributions
• Future increases in property value
Property is one of the most commonly protected assets. Without a BFA, property acquired before the relationship may still be divided by the court.
See our BFA service page:
👉 https://www.adamsunited.com.au/binding-financial-agreement/
2. Inheritances
A prenup can protect inheritances received before or during the relationship.
Courts frequently redistribute inheritances in property settlements unless clear legal boundaries exist.
A BFA can specify:
• Inheritance remains separate property
• Income derived from inheritance remains separate
• Future inheritances are excluded from the joint pool
This is one of the strongest reasons families insist on BFAs.
3. Businesses and Companies
A BFA can protect:
• Sole trader businesses
• Companies
• Family businesses
• Shares or units in trusts
• Intellectual property
• Business growth over time
Without a prenup, business growth during the relationship may be divided in separation.
Read more:
👉 https://www.adamsunited.com.au/binding-financial-agreement/
4. Superannuation
Prenups can determine how superannuation will be treated on separation.
Common structures include:
• Each party retains their own super
• No splitting of superannuation
• Pre-relationship super preserved as separate property
This is crucial where partners have unequal balances.
5. Savings, Investments and Financial Resources
A prenup can protect:
• Cash savings
• Shares
• Crypto assets
• Bonds
• Trust interests
• Future bonuses or financial resources
These assets are often contested in litigation; a BFA avoids uncertainty.
6. Unequal Contributions in Blended Families
A prenup can protect assets intended for children from previous relationships.
This ensures:
• Assets stay within the bloodline
• New partners do not gain claims over family wealth
• Children’s inheritance pathways are preserved
What a Prenuptial Agreement Cannot Protect
While BFAs are legally binding, there are specific limits set by the Family Law Act.
1. Child Support and Parenting Arrangements
A prenup cannot:
• Predetermine custody
• Predetermine care arrangements
• Restrict a parent’s responsibilities
• Override the best interests of the child
• Finalise child support (only the Child Support Agency can assess this)
Any clause attempting this will be unenforceable.
2. Terms That Become Impracticable
If circumstances change dramatically, a clause may become invalid.
Examples include:
• Unexpected medical issues
• Significant changes to children’s needs
• Financial events making compliance impossible
Courts assess whether it remains fair and workable.
3. Agreements Signed Under Pressure
A prenup cannot protect terms signed:
• Days before the wedding
• Without proper advice
• Under emotional pressure
• Where there was bargaining inequality
A rushed or pressured signing increases the risk of challenge.
For legally compliant advice, see:
👉 https://www.adamsunited.com.au/independent-legal-advice/
4. Hidden or Undisclosed Assets
Non-disclosure undermines enforceability.
A prenup cannot protect assets that were intentionally concealed or undervalued.
Full disclosure protects the integrity of the agreement.
5. Terms That Would Lead to Hardship
If enforcing a clause would cause extreme financial hardship to one partner or a child, the court may intervene.
Professional drafting prevents these issues.
How to Ensure the Prenup Remains Enforceable
To maximise protection:
- Provide full disclosure
- Obtain independent legal advice
- Use accurate asset values
- Avoid rushed signing
- Update the agreement when circumstances change
See our fixed-fee BFA drafting:
👉 https://www.adamsunited.com.au/binding-financial-agreement-prenup/
Is a Prenuptial Agreement Worth It?
A prenup provides certainty, protects assets, and avoids costly disputes.
It is particularly valuable for:
• Property owners
• High-income partners
• FIFO workers
• Business owners
• Second marriages
• Blended families
• Unequal contributions
• Expected inheritances
Prenups are risk management tools. They protect both partners.
Fixed-Fee Prenup Drafting | Adams United Lawyers
• Fixed-fee drafting
• Independent legal advice
• Nationwide service
• Fast turnaround
• Full compliance with the Family Law Act
• Legally enforceable agreements
Contact:Us
kadams@adamsunited.com.au
https://www.adamsunited.com.au/binding-financial-agreement/
