Prenuptial agreement (BFA) – the wealth protection strategy couples overlook

Love is priceless, but your assets aren’t. Protecting your financial future isn’t about a lack of trust, it’s about smart planning. In Australia, a binding financial agreement (BFA) (also known as a prenuptial agreement) is a legally enforceable contract that safeguards your assets, business, and future wealth in the event of separation or divorce.

Here’s why every high-net-worth individual, entrepreneur, and investor should consider one:

How a BFA protects your assets

• Excludes specific assets from divorce settlements
  • A BFA ensures that assets owned before marriage remain yours and are not subject to division.
    This includes:
    • Real estate
    • Business interests & investments
    • Inherited wealth & family trusts
• Prevents costly legal battles
  • Without a prenup, Australian courts divide assets based on what’s “just and equitable” (which may not align with your intentions). A BFA eliminates uncertainty by clearly defining asset ownership.
• Protects business & professional assets
  • If you own a business, a prenup prevents it from being included in a divorce settlement—safeguarding your company’s future.
• Shields future wealth & inheritances
  • If you expect to receive a family inheritance or trust distributions, a BFA ring-fences those assets, ensuring they remain separate from marital property.
• Ensures fair division of joint assets
  • A clear agreement on how shared assets (homes, cars, investments) will be split can prevent financial disputes and lengthy court battles in the future.

Who should consider a BFA?

• Business owners & entrepreneurs who don’t want their companies at risk.
• Property investors who want to protect real estate assets.
• High-net-worth individuals with significant savings, trusts, or family wealth.
• Anyone entering a second marriage with existing financial obligations or children from a previous relationship.

A BFA isn’t about expecting a breakup – it’s about clarity, security, and financial protection.

Would you sign a BFA before marriage?