Section 4AA of the Act defines a de facto relationship as follows: A de facto relationship is a relationship in which a couple lives together on a real domestic basis. This definition applies to Queensland, New South Wales, Victoria, the Northern Territory, South Australia, Western Australia, Tasmania and the capital Australian territory. The Family Act 1975 provides that the parties to a marriage or de facto relationship shall enter into a binding legal agreement on financial arrangements in the event of the breakdown of their couple or common-law relationship. Sometimes people know these agreements as “marriage contracts,” but the legal term is “financial arrangement.” In this short introductory video, we look at the circumstances in which you should consider a binding financial agreement. 1 Binding financial agreements are particularly advantageous in marriages or relationships that have followed, in which people have accumulated significant assets that want to protect them and ensure that children, usually from a previous marriage or relationship, inherit them. The decision on what the agreement should provide for requires careful reflection. The couple needs to think about how they want to organize their finances during their relationship. You also need to think about all the things that might happen in the future, whether expected or unexpected, such as the birth of children, job loss, illness or disability, estates, etc. We all want our relationships to work, but you never know what events are approaching. It is best to be as prepared as possible to reduce all financial risks and protect all assets by entering into a BFA.