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What Is a Binding Financial Agreement and How Can It Protect Your Super?
When a relationship breaks down, sorting out who gets what can be tough, especially when it comes to superannuation. Many people don’t realise that super is treated like any other asset during a separation and can be split between partners. That’s where a Binding Financial Agreement (BFA) can help. A BFA is a legal agreement that sets out how your finances, including super, will be divided if things don’t work out, and it can save you a lot of stress, confusion, and time in the long run.

What exactly is a BFA?

A Binding Financial Agreement is basically a contract between you and your partner that outlines how your property, money, and super will be handled if your relationship ends. They’re available to both married and de facto couples and can be tailored to suit your specific situation.

You can make a BFA:
  • Before the relationship starts (think of it like a prenup)
  • While you’re together
  • After you separate or divorce

Why Super Matters in a Separation

Superannuation might not feel like a big deal right now, especially if you’re not near retirement, but it’s often one of the largest assets people have. In a separation, super gets added to the total asset pool and can be split. If one partner has taken time off work to care for children or has earned less over the years, there might be a big difference in balances. A BFA can make sure that split is handled fairly and clearly, without dragging things through court.

How a BFA Helps Protect Your Super

With a BFA, you and your partner can:
  • Agree upfront on what happens to super if you separate
  • Decide how much (if any) gets split
  • Avoid having a judge decide for you

It gives you more control and helps reduce arguments down the track.

Is a BFA Legally Binding?

Yes, but only if it’s done properly. There are a few legal hoops to jump through:
  • Both people need to get independent legal advice
  • Your lawyers must provide certificates confirming they gave that advice
  • The agreement has to be in writing and signed by both of you
  • It must follow the rules set out in the Family Law Act 1975

If any of these steps are missed, the agreement could be challenged later on, so it’s important to do it right the first time.

When Should You Consider One?

A BFA might be worth considering if:
  • You or your partner have built up a decent amount of super
  • You want to protect your financial future
  • You’d prefer to sort things out privately rather than going through court
  • You want peace of mind in case things change later on

Final Thoughts

A Binding Financial Agreement can take the uncertainty out of what happens to your super, and the rest of your finances, if your relationship ends. It’s not always the right option for everyone, but it can offer a lot of clarity and reduce conflict if things do go south. If you're thinking about making a BFA, chat with a family lawyer to make sure it’s right for you and that it’s done properly from the beginning.
For more family law advice like this, feel free to reach out to Genuine Legal for a consultation.
Call us on (07) 2102 0641 if you need our assistance.
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Property
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