When Should You Consider a BFA?
BFAs aren't just for the ultra-cautious or mega-rich. There are loads of ordinary situations where they can save hassle, money, and arguments. Here are real-life scenarios where Australian couples regularly use BFAs:
Scenario 1: Unequal Initial Contributions
The Situation:
Ben and Lisa are buying their first home together. Ben is putting in $150,000 from inheritance money, while Lisa is contributing $50,000 from savings. They're splitting the mortgage 50/50 going forward.
Without a BFA:
If they separate in 5 years, the Family Court will assess contributions under s. 79, and Lisa might argue for a 50/50 split because she contributed to mortgage repayments, household expenses, and homemaking. Ben's larger initial deposit could get diluted.
With a BFA:
They agree Ben retains credit for his $150k initial contribution. If they separate, the property is valued, Ben gets his $150k off the top, and the rest is split 50/50 (or however they agreed). Clean. Fair. No arguments.
Scenario 2: Blended Families
The Situation:
James (50) has two adult kids from his first marriage. He's entering a de facto relationship with Sarah (48), who has one teenage daughter. James owns his house outright (worth $900k) and has $400k in super. He wants to make sure his kids inherit these assets, but also wants to provide for Sarah if things work out long-term.
Without a BFA:
If James dies or they separate, Sarah could claim a share of his house and super under s. 79 or the will contest laws. His kids could be left out in the cold.
With a BFA:
James and Sarah agree:
- James's house remains his (and goes to his kids if he dies)
- His super is quarantined for his kids
- Assets acquired jointly during their relationship are split 50/50
- Sarah keeps her own property and super
Everyone knows where they stand. No family feuds.
Scenario 3: Business Owners
The Situation:
Priya runs a successful graphic design business (sole trader, ~$200k annual revenue). She's moving in with her partner, Tom, who works in retail. Priya's built her business from scratch over 10 years: her client list, brand, and reputation are everything.
Without a BFA:
If they separate, Tom could claim a share of the business value under s. 75(2) future needs factors (arguing Priya's income capacity was built during the relationship). Courts can value goodwill, client lists, and future earnings, even if Tom never worked in the business.
With a BFA:
Priya and Tom agree:
- Priya's business (including goodwill and client lists) remains hers
- Tom is not entitled to business income or value
- Joint assets (house, savings) are split fairly
Priya protects her livelihood. Tom knows he's not entitled to business value he didn't help create.
Scenario 4: Debt Protection
The Situation:
Mark has $80,000 in HECS debt and $15,000 in credit card debt from before his relationship with Emma. Emma has no debt and $100k in savings. They're getting married.
Without a BFA:
In a property settlement, the Family Court considers debts as negative contributions. Emma's $100k could be reduced by Mark's $95k in debt, effectively making the "pool" just $5k, even though Emma brought $100k.
With a BFA:
They agree:
- Mark's pre-existing debts remain his liability
- Emma's $100k savings are protected
- Debts incurred jointly during the marriage are split 50/50
Fair. Clean. No resentment.
Scenario 5: Stay-at-Home Parent
The Situation:
David and Sophia are married. Sophia earns $180k as a lawyer. David plans to stay home to care for their two young children. They want to agree now on how property will be split if they separate, to avoid David being left with nothing if Sophia's career continues to grow.
Without a BFA:
David would rely on s. 75(2) homemaker contributions and future needs (especially parenting capacity). But outcomes are unpredictable.
With a BFA:
They agree:
- Property will be split 60/40 in David's favour (recognising his homemaker role)
- David gets the family home if they separate (for child stability)
- Sophia's super is split 50/50
David has certainty. Sophia knows the plan. No court battle needed.
Scenario 6: Inheritance Protection
The Situation:
Zoe expects to inherit her parents' family farm (worth ~$3M) in the next 10–20 years. She's about to marry Alex. Zoe wants to make sure the farm stays in her family: it's been passed down for three generations.
Without a BFA:
If Zoe inherits during the marriage, it becomes part of the property pool under s. 79. Alex could claim a share, especially if the marriage lasts 10+ years.
With a BFA:
Zoe and Alex agree:
- Any inheritance Zoe receives from her parents remains her separate property
- The farm will not be divided if they separate
- Alex is entitled to a fair share of other jointly acquired assets
Zoe protects her family legacy. Alex knows the deal upfront.
The Bottom Line
BFAs aren't about distrust: they're about clarity. Life is complicated. Relationships are complicated. A BFA removes the guesswork and gives both parties certainty.
Whether you're blending families, protecting a business, or just want to avoid a Family Court lottery, a BFA is the smart move.