The $13.9 million wake-up call
In March 2026, the CEO of ASX-listed Electro Optic Systems (EOS) sold 1.5 million shares at $9.28 each, raising roughly $13.9 million to fund a house purchase and a divorce Settlement. EOS’s share price fell between 17 and 25 per cent within days of the disclosure. Other executives flagged their own sales.
One personal financial event wiped hundreds of millions in shareholder value. EOS is a listed company, so the event was public.
The same pattern plays out privately across Queensland every week. Business owners liquidate assets below market value to meet Settlement deadlines. Superannuation splits arrive without forward planning and force tax consequences nobody modelled. Family homes sell under time pressure. The financial cost of separation without preparation reaches well beyond the couple: it touches business partners, co-shareholders, employees, and the wider family.
A Binding Financial Agreement is one way to take that pressure off before it arrives. It is also, increasingly, a way to resolve matters after separation without going through Court.
What is a Binding Financial Agreement?
A Binding Financial Agreement is a legal instrument under the Family Law Act 1975 (Cth). It records how a couple’s assets, liabilities, and financial resources will be divided if the relationship ends.
A Binding Financial Agreement can be entered at three points:
- Before a marriage or de facto relationship begins
- During a relationship
- After separation or divorce
For the Agreement to be binding, both parties must receive independent legal advice from separate lawyers. The Agreement must also satisfy the statutory requirements of the Family Law Act 1975 (Cth). Your family lawyer will confirm what that looks like in your circumstances.
Why it belongs alongside your other financial planning
Most people who own a business, hold investment property, or have accumulated superannuation already carry insurance, tax structures, and an Estate plan. A Binding Financial Agreement sits in the same category. It is not a prediction that the relationship will fail. It is a plan that protects what you have built.
Without one, the division of property on separation defaults to the Family Law Act framework: an assessment of contributions and future needs that may not align with how you or your partner expected things to be divided. That process is expensive and time-consuming, particularly when it reaches Court.
A Binding Financial Agreement can reduce that uncertainty. It gives both parties clarity. It gives any business, property, or financial structure you have built a layer of protection.
When to think about one before separation
A Binding Financial Agreement becomes relevant at particular moments in a relationship:
- You are starting a business or entering a business partnership
- You are buying property, individually or together
- You are receiving or expecting an inheritance
- You are entering a new relationship where one or both partners have existing assets, children from previous relationships, or business interests
- Your financial position has changed significantly since the relationship began
With EOFY approaching, many Sunshine Coast business owners are already reviewing their financial position. That annual review is a natural point to consider whether your assets are structured and protected in the way you want.
What a Binding Financial Agreement can do after separation
A Binding Financial Agreement is not only a pre-separation planning tool. It can also be used after a relationship ends to formalise how assets and liabilities are divided, without going through the Courts.
For many people going through separation, a post-separation Binding Financial Agreement offers a practical alternative to contested Court proceedings. Where both parties are willing to reach a negotiated position, the Agreement records that resolution in a legally binding form. Both parties still need independent legal advice, and the Agreement must meet the requirements of the Family Law Act 1975 (Cth) to be enforceable.
A post-separation Binding Financial Agreement can cover the same range of assets and liabilities as one entered before or during a relationship: real property, superannuation, business interests, investments, and financial resources. Where the parties are in agreement on the broad terms, the drafting process is typically faster and less costly than litigation.
The Agreement can also be more flexible than a Consent Order in some respects, though both are available options depending on the circumstances. Your family lawyer will advise which instrument is better suited to your situation.
If you are already separated and have not yet formalised the financial arrangements, the longer you leave it, the more complicated the process can become. Legal timeframes apply, and your solicitor will confirm what applies to your circumstances.
The first step is a confidential conversation about where things stand. There is no obligation, and you do not need to have a finalised position before making contact.
What a first conversation looks like
The first step is a confidential consultation with a family lawyer. You do not need to have made any decisions about your relationship. You do not need to bring documents or have a position prepared. The purpose is to understand what a Binding Financial Agreement can, and cannot, do in your circumstances.
At Griffiths Parry Lawyers (GPLaw), we will explain the process, the requirements, and the costs before any work begins. There is no obligation, no pressure, and no judgement.
If you want to understand your options, whether you are planning ahead or working through a separation, contact our family law team.
For Accountants and Financial Advisers
If you advise clients on asset protection, tax structuring, or business planning, a Binding Financial Agreement may be relevant to clients you are already working with. You are often the first professional to notice the financial signals of a relationship under strain: changes in account behaviour, valuation requests outside normal cycles, or questions about the CGT implications of transfers between spouses.
When you see those signals, a referral to a family lawyer before the separation becomes adversarial can save your client significant cost and stress. We coordinate with referral partners so the financial and legal advice align.
The Accountant or Adviser remains the primary relationship. We handle the legal dimension.
Get in touch
If you want to understand your options, whether you are planning ahead or working through a separation, contact our family law team.
This article provides general information only. It is not legal advice and should not be relied upon as such.
For advice specific to your circumstances, contact Griffiths Parry Lawyers & Notary.
