Binding financial agreements (sometimes called ‘prenups’) can help manage risk and create certainty in some situations. They can be made before, during, or after a relationship, depending on the context.
What a BFA is (in practical terms)
A BFA is a formal agreement that sets out how property and (in some cases) spousal maintenance will be dealt with if a relationship breaks down. The goal is usually to create clarity and reduce future disputes.
Common situations where BFAs come up
- Significant pre-existing assets
- Second relationships / blended families
- Family business interests
- Inheritance expectations
- Unequal contributions where both parties want clarity
When BFAs can be helpful
- Both parties want clear expectations and are negotiating early
- There is a genuine desire to reduce risk and uncertainty
- The agreement is prepared carefully with appropriate advice and disclosure
When BFAs may not be suitable
- One party feels pressured or rushed
- There is limited disclosure or uncertainty about assets
- The agreement is treated as a template rather than tailored to the relationship
- Circumstances are changing rapidly (health, children, finances)
How this connects to property settlement
Many people compare BFAs with consent orders when formalising a property settlement. The right approach depends on timing, complexity, and your priorities.