Should You Get A BFA If You Don’t Have Many Assets?

Yes, a binding financial agreement is often worth considering even if you have few assets right now.

A BFA does not just cover what you currently own.

It can address how future income, superannuation growth, future inheritances, and career earnings are treated if the relationship ends.

Getting a BFA when your assets are simple may also be less complex and less expensive than waiting until your finances grow.

This article covers why a BFA can be a practical choice for couples starting out, what it can and cannot address for the future, and what the process involves.

Does a BFA Only Protect What You Already Own?

No, a binding financial agreement is not limited to the assets you hold at the time of signing.

Under the Family Law Act 1975, a BFA can address existing property, future property, spousal maintenance, and financial resources.

The exact scope depends on the type of agreement and when it is made.

Sections 90B to 90D cover agreements for married couples, while sections 90UB to 90UD cover de facto couples, and each provision defines what the agreement can deal with at that stage of the relationship.

This means you can include clauses addressing how assets either party acquires after the agreement is signed will be treated if the relationship ends.

The key is in how the agreement is drafted.

A well-prepared BFA will clearly define how after-acquired property is treated if the relationship ends.

For example, a clause might state that assets purchased solely from one party’s pre-existing funds or inheritance remain with that party, while jointly acquired property is divided on agreed terms.

This forward-looking approach is exactly what makes a BFA relevant for couples who do not yet have a large asset pool.

You are not just addressing what you have today.

You are setting out agreed terms for how property acquired during the relationship will be treated if you separate.

For many young or early-career couples, the most significant financial growth happens after they move in together or marry, making a BFA that covers future assets particularly valuable.

Why Should You Consider a BFA When You Have Few Assets?

A BFA is worth considering when you have few assets because your financial position may change significantly over time.

Couples who start with very little often build significant wealth during their relationship through combined incomes, career progression, superannuation accumulation, and property purchases.

Without a BFA, all of this growth falls under the default property division framework if the relationship ends.

A BFA gives you the chance to agree on terms while the relationship is strong, rather than negotiating or litigating during a stressful separation.

There are several specific reasons why couples with modest assets should still consider a BFA.

Can a BFA Protect Future Income and Career Growth?

Yes, a BFA can include provisions that address how future income and career-related assets are treated if the relationship ends.

If one partner is early in a high-earning career, such as medicine, law, engineering, or finance, their income and associated assets may grow significantly over the coming years.

A BFA can specify that income earned after the agreement is made, or assets purchased from that income, are treated in a particular way if the relationship breaks down.

This is particularly relevant where one partner sacrifices career opportunities to support the other’s professional development, or where one partner takes time out of paid work to care for children.

The property and financial disclosure reforms under the Family Law Amendment Act 2024, which commenced on 10 June 2025, codified the property division framework and strengthened disclosure requirements.

These changes mean it is more important than ever to document your financial arrangements clearly from the outset.

What About Superannuation and Retirement Savings?

Superannuation can be a substantial asset, and it is often one of the largest financial resources a person holds.

According to data from the Association of Superannuation Funds of Australia based on ATO figures as at June 2024, the median superannuation balance for Australians aged 25 to 29 with an account is $21,395.

By age 35 to 39, that figure rises to $69,200, and by age 40 to 44 it reaches $100,330.

These figures reflect combined male and female balances for people who hold a superannuation account, excluding nil balances, and represent different age groups observed at a single point in time rather than a projection of individual balance growth.

They do illustrate, however, how superannuation balances tend to grow over a working life, and over a decade or more together, super can become a six-figure asset for each partner.

Without a BFA, superannuation is considered as part of any property settlement under the Family Law Act.

A BFA can specify how superannuation is treated, including whether each party retains their own balance or whether superannuation splitting applies.

Any superannuation split included in a BFA must also comply with the relevant superannuation legislation and its implementation requirements.

This is especially useful for couples where one partner has a significantly higher super balance due to differences in employment history or income.

How Does a BFA Help If You Expect an Inheritance?

A BFA can protect an expected inheritance or family gift by specifying that such assets remain the separate property of the receiving party.

Without a BFA, an inheritance received during a relationship can be relevant in a property settlement regardless of whether it has been mixed with other funds.

While mixing inherited money with joint finances or using it for shared purposes such as paying down a mortgage can strengthen a claim, an inheritance kept separately may still be taken into account depending on the circumstances.

By including clear terms in a BFA about how inherited assets will be treated, you reduce the risk of a dispute over those assets if the relationship ends.

This is relevant for couples of any age, but particularly for those in their twenties and thirties who may receive intergenerational wealth transfers from parents or grandparents in the years ahead.

The agreement should be specific about what types of inheritances are covered and how they are to be handled, whether they are kept entirely separate or dealt with under particular conditions.

What If One Partner Brings Debt into the Relationship?

A BFA can allocate responsibility for existing debts between the parties, which is just as important as addressing assets.

If one partner enters the relationship with significant liabilities, such as HECS-HELP debt, credit card debt, or business loans, a BFA can specify that responsibility for those debts stays with the person who incurred them.

It is important to understand that a BFA allocates responsibility between the parties but does not, by itself, release a borrower or guarantor from liability to a third-party lender.

Creditor rights are separate and must be addressed independently.

Without a BFA, the way debts are treated during a property settlement depends on the circumstances and the court’s assessment of contributions and future needs.

In a property settlement, a partner who entered the relationship debt-free could see the other’s pre-existing liabilities affect the overall division of property, even though a relationship does not automatically make someone responsible for their partner’s debts.

Setting this out in a BFA gives both parties greater clarity about where they stand financially if the relationship breaks down.

What Happens Without a BFA If You Separate?

Without a BFA, your property settlement is guided by the framework under the Family Law Act 1975, although most separating couples negotiate their own arrangements rather than going to court.

The property and financial disclosure reforms under the Family Law Amendment Act 2024, which commenced on 10 June 2025, codified a four-step process that applies where parties cannot reach agreement.

First, the property and liabilities of both parties are identified and valued, including real property, superannuation, investments, and debts.

Financial resources are also considered, though they are treated separately from property that is available for division.

Second, the court assesses each party’s contributions, both financial (such as income and assets brought into the relationship) and non-financial (such as homemaking and caring for children).

Third, the court considers the current and future circumstances of each party, including age, health, earning capacity, and care of children.

Finally, the court determines whether the overall result is just and equitable.

According to the Australian Bureau of Statistics, for marriages represented in the latest divorce statistics, the median duration from marriage to separation was 9.4 years.

A significant amount of wealth, including superannuation, property, and savings, can accumulate over that period.

Without a BFA, any settlement depends on what both parties can negotiate, or if they cannot agree, on a court applying the statutory framework.

A settlement considers the full picture, including assets brought into the relationship, property acquired during it, and each party’s contributions and circumstances, not just what was built together.

A BFA reduces much of this uncertainty by allowing both parties to agree in advance on how their property will be treated.

The table above highlights the practical differences for couples who separate with and without a BFA in place.

For couples who currently have few assets, the key takeaway is that a settlement can consider the full range of property, contributions and circumstances, and without a BFA you have less control over how that process plays out.

Is Getting a BFA More Affordable When Your Assets Are Simple?

Yes, a BFA may be simpler and less expensive to prepare when your financial situation is straightforward.

The cost of preparing a binding financial agreement depends largely on the complexity of the assets involved.

Couples with few assets, no business interests, no trust structures, and no international property may have a simpler agreement to draft.

This can mean less legal work and lower fees for both parties, although cost also depends on the terms being negotiated and the complexity of any future provisions.

Compare this to the cost of getting a BFA later in life, when you may have accumulated property, shares, business interests, superannuation across multiple funds, and possibly interests in family trusts.

Each additional asset class can add complexity to the drafting process, which may increase the time and cost involved.

It is also worth comparing the cost of a BFA to the potential cost of a property settlement dispute.

Family law litigation in Australia can cost tens of thousands of dollars, and contested property matters that go to a final hearing can cost significantly more.

A BFA prepared when your assets are modest can be a worthwhile investment compared to the potential cost of resolving a property dispute without one.

For couples who are just starting out, the simplicity of their financial affairs works in their favour.

A straightforward BFA covering income, superannuation, and future property purchases can be prepared efficiently and at a lower cost than it would be if those same assets were in place and needed detailed valuation and allocation.

What Are the Key Requirements for a Valid BFA?

A BFA must meet strict legal requirements to be binding.

For married couples, these are set out in section 90G of the Family Law Act 1975, while section 90UJ applies to de facto couples.

These requirements apply regardless of whether you have substantial assets or very few.

The agreement must be in writing and signed by both parties.

Each party must receive independent legal advice from a separate lawyer before signing.

Each lawyer must provide a signed statement confirming that they have given advice about the effect of the agreement on the rights of their client and the advantages and disadvantages of making the agreement.

Copies of these signed statements must be provided to the other party.

These formalities exist to protect both parties and to reduce the risk of the agreement being challenged later.

Why Is Independent Legal Advice So Important?

Independent legal advice is not just a formality.

It is one of the most critical safeguards in the BFA process.

In the landmark case of Thorne v Kennedy [2017] HCA 49, the High Court of Australia held that the parties’ prenuptial and postnuptial financial agreements should be set aside for unconscionable conduct.

A majority of the Court also found undue influence.

The case involved two agreements, made before and after the wedding, where one party had significantly less bargaining power.

The wife had received independent legal advice strongly recommending she not sign, which demonstrates that legal advice alone does not ensure enforceability where the surrounding circumstances undermine genuine consent.

This case highlights why both parties must have genuine access to independent legal advice and sufficient time to consider the agreement.

A BFA signed without proper legal advice, or where one party was pressured into signing, is at serious risk of being set aside by a court.

What Role Does Financial Disclosure Play?

Full and frank financial disclosure is essential for a BFA to hold up.

Both parties must disclose all of their assets, liabilities, income, and financial resources before the agreement is signed.

If one party fails to disclose a significant asset or liability, the other party may apply to have the agreement set aside on the basis that it was obtained by fraud, including material non-disclosure.

The property and financial disclosure reforms under the Family Law Amendment Act 2024, which commenced on 10 June 2025, introduced statutory disclosure obligations for financial and property proceedings.

While these provisions primarily apply to separated parties in proceedings, disclosure remains a critical part of entering into a BFA because fraud involving material non-disclosure can be grounds for setting the agreement aside.

For couples with few assets, disclosure is typically straightforward, but it is still a step that must be completed honestly and thoroughly.

Skipping or glossing over disclosure, even when there is not much to declare, can create grounds for a challenge later.

When Might a BFA Not Be the Right Choice?

A BFA is not always necessary, and there are situations where it may not be the best use of your money.

If both partners have roughly equal financial positions, similar earning potential, and neither expects a significant inheritance or windfall, the practical benefit of a BFA may be limited.

The cost of preparing a BFA, including legal fees for both parties, may not be justified if there is very little at stake and the parties’ financial futures are closely aligned.

However, it is important to remember that financial circumstances change.

A couple who starts out on equal footing may find themselves in very different positions five or ten years later due to career changes, time out of the workforce, health issues, or unexpected financial events.

What looks like an unnecessary expense today could prove to be a valuable safeguard down the track.

Another consideration is the emotional impact.

Raising the topic of a BFA can feel uncomfortable, particularly for couples who are newly together.

But approaching the conversation early, while both parties are on good terms, is generally easier and more productive than trying to sort out financial arrangements during a separation.

Ultimately, whether a BFA is right for you depends on your individual circumstances, your financial goals, and how important it is to both of you to have clarity about what happens if the relationship ends.

Need Help With a Binding Financial Agreement?

Whether you have a large asset pool or are just starting out, a well-drafted BFA can give you and your partner clarity and certainty about your financial future.

As BFA lawyers in Australia, my law firm can help you put a binding financial agreement in place that suits your situation, at a transparent fixed fee.

Call today on 1300-529-888 to discuss your options.

Frequently Asked Questions

Is a BFA worth it if we only have a car and some savings?

It can be, because a BFA covers more than your current assets. It can address how future income, superannuation growth, inheritances, and property purchased during the relationship are treated if you separate. Getting a BFA while your finances are simple may also mean the process is less complex and less expensive than waiting until your situation grows.

Can a BFA protect assets I haven’t earned yet?

Yes, a binding financial agreement can include provisions addressing how after-acquired property and future income are treated. The agreement must be carefully drafted to specify terms for these future assets under the relevant provisions of the Family Law Act 1975. This can cover salary growth, investment returns, business interests, and superannuation contributions made after the agreement is signed.

Do both partners need their own lawyer for a BFA?

Yes, each party must receive independent legal advice from a separate lawyer before signing a BFA. For married couples, this requirement is under section 90G of the Family Law Act 1975, and for de facto couples under section 90UJ. Each lawyer must provide a signed statement confirming they have advised their client on the agreement’s effect, advantages, and disadvantages.

What happens to superannuation without a BFA?

Without a BFA, superannuation is considered as part of any property settlement under the Family Law Act, but splitting is not automatic. The treatment depends on each party’s contributions and current and future circumstances, and parties may retain their respective balances. A BFA allows you to agree in advance on how super is handled, providing greater clarity.

Can a BFA be updated as our assets grow?

Yes, a binding financial agreement can be updated, but this ordinarily requires a formal replacement agreement that terminates the earlier one, or a termination agreement followed by a new BFA. Both parties must consent, and the replacement must meet the same legal requirements as the original. This means you can start with a simple BFA and formally update it as your circumstances change.