Binding Financial Agreements (BFAs) and Consent Orders are two ways to finalise property settlements. BFAs offer flexibility but carry risks if poorly drafted. Consent Orders are court-approved and enforceable. This guide explains the differences and when each option is suitable.
What is a Binding Financial Agreement (BFA)?
A BFA is a private contract between partners that sets out a property settlement. It can be made:
- Before a relationship (“pre-nup”)
- During a relationship
- After separation
BFAs require both parties to receive independent legal advice.
Pros of BFAs
- Flexibility
- Can protect inheritances or family wealth
- Useful for second marriages or complex structures
- Quick to implement
Cons of BFAs
- Easier to challenge if advice or disclosure was inadequate
- No court oversight
- Higher drafting risk if using inexperienced lawyers
- Must meet strict legal requirements
What are Consent Orders?
Consent Orders are agreements approved by the court.
They become legally enforceable without anyone attending court.
Pros of Consent Orders
- High enforceability
- Lower risk of challenge
- Court checks fairness
- Often preferred for property settlements
Cons of Consent Orders
- Less flexible for some asset structures
- More paperwork
- Requires precise drafting
Which one should you choose?
Consent Orders are usually best when:
- You’ve already separated
- You want enforceability and certainty
- There are significant assets to divide
- There’s a risk of future dispute
BFAs can be best when:
- Protecting family wealth
- Significant imbalance in contributions
- Blended families
- One partner is entering with substantial assets
- Intergenerational wealth structures need certainty
Resolve’s Perspective
We do not use cookie-cutter templates.
We craft agreements that balance fairness, risk and long-term predictability.
FAQs
Is a BFA as strong as a Court Order?
Not always — BFAs can be challenged on several grounds.
Can we change a Consent Order?
Only in limited circumstances or by agreement.
Interested in learning more about your first steps towards a Binding Financial Agreement or Consent Order? Book a free 15-minute call with our team by clicking here.