Are Binding Financial Agreements in De Facto Relationships Truly Watertight?

08/25/2025 Why Legal Protection Matters in De Facto RelationshipsAs de facto relationships become increasingly common across Australia, many couples are choosing to live together and share their lives without formal marriage. But with shared lives come shared assets, and when relationships break down, dividing property can quickly become a complicated and emotionally fraught process.
Enter the Binding Financial Agreement (BFA). This legal document aims to protect the assets you brought into the relationship and clarify how property should be divided if things do not work out. But just how bulletproof are these agreements?
If you are in Brisbane, the Gold Coast or Cairns, the experienced team at James Noble Law is here to guide you through every step of drafting or challenging a BFA. Within Brisbane, James Noble Law has two locations at Toowong and North Quay for your convenience.
What is a Binding Financial Agreement?A Binding Financial Agreement is a legally recognised document under the Family Law Act 1975 (Cth) that outlines how property, financial resources, and spousal maintenance will be handled if a relationship ends.
While commonly associated with marriages, BFAs are equally vital in de facto relationships, especially when there is a significant disparity in the financial standing between partners.
A BFA acts as a contractual “insurance policy” for your financial future. For those entering a de facto relationship with substantial assets, business interests, or family obligations, this agreement can offer peace of mind and clarity.
Why You Might Need One: Real-World ScenariosConsider these situations:

You own a home prior to the relationship and want to ensure it remains solely yours if things go south.
You are receiving a family inheritance and want to ring-fence it from future claims.
There is a significant difference between your income and your partner’s, and you wish to protect yourself from post-breakup financial disputes.

In all these cases, a properly executed BFA can offer powerful protection-if it is done right.
But Are They 100% Watertight? Not Exactly.Despite the strength of a well-drafted BFA, these agreements are not completely foolproof. The Family Court does have the power to set them aside in certain circumstances. At James Noble Law, with offices in Brisbane (located at Toowong and North Quay), Gold Coast and Cairns, we regularly advise clients on how to bulletproof their BFAs as much as the law allows.
Let us explore some of the most common pitfalls that can make a BFA vulnerable to challenge:
Failure to Disclose Financial InformatioOne of the most critical requirements of a Binding Financial Agreement is full and frank financial disclosure. If one party fails to disclose all assets, income, liabilities, or financial resources, the court may determine that the agreement was based on misleading or incomplete information and set it aside.
For example, if someone hides overseas bank accounts or underreports their income, the integrity of the agreement collapses. Transparency is not simply good practice-it is legally essential.
Duress or Undue InfluenceBFAs must be entered freely and voluntarily. If one party was pressured or coerced into signing the agreement, it can be rendered invalid. A common red flag? Ultimatums like “Sign this or we’re not moving in” or “No BFA, no wedding.” Such pressure could be deemed legal duress.
At James Noble Law, we take care to ensure that both parties understand their rights and make decisions without pressure-an essential step to safeguarding the agreement’s enforceability.
Improper or Inadequate Legal AdviceUnder the Family Law Act, both parties must receive independent legal advice from qualified solicitors before signing a BFA. This advice must cover:

The effect of the agreement on the party’s rights;
The advantages and disadvantages of entering into the agreement.

Failure to provide or receive proper written advice, especially in the case of low-cost or online agreements, can open the door for challenges. BFAs are complex documents and should never be approached as a “tick-the-box” exercise. The team at James Noble Law ensures that every agreement is thoroughly vetted and legally sound.
Non-Compliance with Legislative RequirementsBinding Financial Agreements must meet stringent legal criteria. These include specific wording, proper execution by both parties, and certificates of independent legal advice.
Miss even one of these requirements, and the agreement could be set aside. The legislative landscape is complex, but with a qualified family law specialist from James Noble Law in North Quay, Toowong, Gold Coast or Cairns, your agreement will be drafted to comply with every nuance of the law.
Unfair or Unenforceable Terms Are BFAs Worth It Absolutely

BFAs must not contain terms that are vague, illegal, or unconscionable. For example:

Clauses that attempt to dictate parenting arrangements post-separation (these fall under separate legal provisions);
Provisions that unfairly benefit one party to the detriment of the other;
Errors or omissions that create legal ambiguity.

Courts can strike down agreements that contain such flaws, so it is critical to have them reviewed by experienced professionals.
So, Are BFAs Worth It? Absolutely, With the Right Legal HelpWhile no solicitor can promise a Binding Financial Agreement is 100% watertight, when prepared correctly, these agreements are the best form of protection available under Australian family law.
At James Noble Law, we understand that every de facto relationship is unique. That is why we tailor every BFA to your personal circumstances and financial landscape, ensuring that the agreement is as secure and enforceable as possible.
What to Do if You Already Have a BFA, or Need One NowWhether you are entering a new relationship, already living with your partner, or contemplating separation, it is wise to consult a family law expert to understand your options.

Need to draft a BFA? We will guide you through the entire process with care and clarity.
Signed a BFA you now regret? We can assess whether it may be challenged or set aside.
Unclear about your rights? Let us talk, your first consultation is free.

Conclusion: Protect Your Future with ConfidenceDe facto relationships come with many joys, but also legal and financial risks. A carefully drafted Binding Financial Agreement is your best line of defense. However, it is not just about ticking boxes, it is about getting the legal advice and support you need to protect what matters most.
If you are in Brisbane, the Gold Coast, or anywhere in Queensland, the dedicated family law team at James Noble Law is here to help. Book your free 20-minute consultation today and take the first step toward peace of mind and legal clarity. Call us on 2112 3947 or book online at www.jamesnoblelaw.com.au .
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James Noble Law

HIGHLY SKILLED AND EXPERIENCED BRISBANE DIVORCE SOLICITORSJames Noble Law will look for alternate resolutions to resolve family disputes to ease the emotional issues and to minimise financial costs. We will examine alternative dispute resolutions that may provide a more suitable resolution including…