Protecting Your Assets with a BFA
One of the top reasons for signing a BFA is asset protection. If you've built up a nest egg, own property, run a business, or received family money, a BFA can legally lock in what stays yours, even if the relationship turns south.
What Assets Can You Protect?
Under Australian family law, almost everything acquired during a relationship becomes part of the "property pool" subject to division under s. 79. A BFA lets you carve out exceptions:
Pre-relationship Assets
Property, savings, or investments you owned before the relationship began can be quarantined as "separate property." Common examples:
- The house you bought before you met
- Inheritance from your late grandparents
- Shares or crypto portfolios you accumulated while single
- Your established business or professional practice
Future Inheritances & Gifts
BFAs can specify that future gifts or inheritances stay with the recipient, not the relationship pool. This is especially important for family farms, businesses, or generational wealth.
Business Interests
If you're a business owner, director, or partner in a professional firm, a BFA can protect:
- Business equity and goodwill
- IP and trademarks
- Client lists and contracts
- Future business growth
Without a BFA, your ex-partner may claim a share of business value under s. 75(2) homemaker and parenting contributions. A BFA can set clear boundaries.
Superannuation
Super is one of the largest assets most Aussies have, and it's fully divisible under s. 90MC. A BFA can specify:
- Each party retains their own super
- Super is split 50/50 (or another ratio)
- Super splitting only applies to contributions made during the relationship
The Fairness Test (Section 90K)
Here's the catch: even a properly executed BFA can be set aside by a court under s. 90K if it's unconscionable, leaves one party in significant hardship, or fails to provide adequately for children. This is why full financial disclosure and independent legal advice are non-negotiable.
A BFA isn't a tool to rip off your partner. It's a tool for both parties to protect what matters while treating each other fairly.
What You Can't Protect
BFAs cannot override child support obligations (Child Support Assessment Act 1989) or parenting arrangements. Financial agreements are about money and property; kids are a separate legal area.
The Bottom Line
A well-drafted BFA means you both know what to expect. No surprises, no "what ifs", just certainty. You set the rules. You live by them. And if things don't work out, you've already agreed on a fair outcome.