A Binding Financial Agreement (BFA) is a legal contract that outlines how assets and finances will be divided between partners in case of separation.
Many couples choose a BFA to protect their financial interests, whether before, during, or after a relationship.
One of the most common concerns is the BFA cost–how much does it actually cost to get one?
The cost of a BFA in Australia varies widely, typically ranging between $2,000 and $10,000. The price depends on factors such as complexity, legal fees, and whether both parties agree on the terms.
While it may seem like a significant investment, a well-prepared BFA can save couples from lengthy and expensive court battles in the future.
How Much Does a Binding Financial Agreement (BFA) Cost in Australia?
The BFA cost is not a fixed amount. It depends on several factors, including the lawyer’s experience, the complexity of the assets, and how much negotiation is required.
General Price Range
On average, the cost of drafting a BFA in Australia is:
- Simple BFA (few assets, straightforward terms): $2,000- $4,000
- Moderate BFA (some assets, minor negotiations): $4,000- $7,000
- Complex BFA (significant assets, business interests, property holdings): $7,000- $10,000+
These prices may vary depending on whether the BFA is being prepared before, during, or after a relationship.
A prenup-style BFA (before marriage or de facto partnership) is often simpler than a post-separation agreement, which may require more legal work.
Why Do Costs Differ?
Every BFA is unique. Some couples may only need a basic agreement, while others have multiple properties, businesses, and financial interests to consider.
The more complex the financial situation, the higher the cost.
What Factors Influence the Cost of a BFA?
Several factors affect the final BFA cost. Understanding these elements can help you estimate how much you might need to budget.
1. Complexity of Financial Assets
If a couple has minimal shared assets, the agreement will be relatively simple. However, if assets include investment properties, trusts, superannuation, businesses, or international holdings, the drafting process becomes more detailed and expensive.
2. Level of Agreement Between Both Parties
If both parties agree on terms quickly, costs remain low. Disagreements and negotiations increase lawyer involvement, which raises costs.
Some cases require multiple rounds of communication to finalise the agreement.
3. Legal Expertise and Experience
Experienced family lawyers may charge higher fees, but they ensure the BFA is legally sound. Cheaper options might lead to poorly drafted agreements that could be challenged in court later.
4. Customisation and Legal Drafting
A standard BFA template is less expensive, but it may not fully protect your interests.
A personalised agreement, tailored to your specific financial situation, requires additional legal work but offers better security.
5. Independent Legal Advice for Each Party
Both partners must receive independent legal advice for the BFA to be legally binding. This means that each party must have their own lawyer, which doubles the legal costs.
Also Read: Legal Guide to Binding Financial Agreements in Brisbane
Are There Additional Legal Fees Beyond the Initial BFA Cost?
A BFA cost is not always a single upfront payment. There are additional legal expenses to consider.
1. Legal Consultation Fees
Many family lawyers charge an initial consultation fee to discuss your financial situation and explain the BFA process. Some offer fixed-fee consultations, while others charge hourly rates.
2. Review and Amendment Fees
If the BFA requires changes after drafting, additional fees may apply. Lawyers charge for each revision, especially if negotiations take longer than expected.
3. Court Challenges and Disputes
Although a well-prepared BFA should be legally sound, disputes may still arise. If a party challenges the agreement in court, legal costs can increase significantly.
4. Witnessing and Notary Fees
Some states and legal firms charge additional fees for witnessing signatures and certifying documents, though these costs are usually minimal.
Does Each Party Need Their Own Lawyer, and How Does This Affect Costs?
Yes. Each person must have their own lawyer for the BFA to be legally binding. This requirement is in place to ensure fairness and to prevent claims of coercion or unfair advantage.
How Does This Impact Costs?
Each lawyer charges separately–The total BFA cost includes legal fees for both parties.
- Hourly vs. fixed fees: Some lawyers charge a flat rate, while others bill hourly, making costs unpredictable.
- Different price ranges: One party’s lawyer may charge significantly more than the other’s, depending on experience and firm reputation.
Although hiring separate lawyers increases costs, it also ensures that the BFA stands up in court if ever challenged. A BFA that lacks independent legal advice can be declared invalid.
Considering a BFA? Call Ipswich Family Lawyers for Expert Legal Guidance
The BFA cost is an investment in financial security and peace of mind. While prices vary, choosing an experienced family lawyer ensures your agreement is legally sound and protects your assets.
If you’re considering a BFA, Ipswich Family Lawyers can guide you through the process. Our expert team provides clear advice, fair pricing, and legally binding agreements tailored to your needs.
Contact us today for a consultation and take the first step toward protecting your financial future.
