Navigating Property Settlement: Unravelling the Difference Between Financial Agreements and Consent Orders

Dividing assets and liabilities after a relationship breakdown (married or de facto) is a crucial step, and formalising that agreement is equally significant. Two common avenues for achieving this formalisation are through Consent Orders and Financial Agreements. In this article, we explain the differences between the two processes.

Consent Orders: Legally Binding Through the Court

When you and your ex-partner, whether married or in a de facto relationship, have come to an agreement on asset division, a Consent Order provides a formalised legal framework. This process involves drafting a legal document outlining the agreed-upon terms, known as proposed orders. Subsequently, an Application for Consent Orders is submitted to the Court along with the proposed orders.

The Court meticulously reviews these documents. If it determines that the proposed orders are 'just and equitable,' they are approved, rendering them legally binding. Consent Orders offer a robust, court-endorsed method for finalising asset division.

Financial Agreements: Privately Crafted Arrangements

A Financial Agreement constitutes a private agreement between the parties involved. Similar to Consent Orders, it outlines how property and assets will be divided, but it extends its scope to cover a broader range of issues. Notably, a Financial Agreement does not require filing with the Court.

To attain legal enforceability, a Financial Agreement must adhere to specific requirements. One such requirement is the inclusion of a separate Statement of Independent Legal Advice for each party. This statement serves as confirmation that the implications of the Agreement on each party's rights, along with its advantages and disadvantages, have been comprehensively explained.

Choosing the Right Path: Seek Legal Guidance

In the decision-making process between Consent Orders and Financial Agreements, the importance of seeking legal advice cannot be overstated. Our team of experienced specialist family lawyers are here to guide you through the intricacies of each option, ensuring that you make an informed choice based on your unique circumstances.

In the intricate landscape of property settlement, understanding the distinctions between Consent Orders and Financial Agreements is paramount.

Our team is dedicated to assisting you in making the right choice for your circumstances, providing clarity and support throughout the process.

Author: Tania Olsen, Lawyer