The difference between Consent Orders and Financial Agreements

Chances are when you think of a family law dispute you probably think all parties are stuck in the court system for years, and spend thousands of dollars. Whilst this is true for some, there are ways to settle out of court, saving you both money and time.

The best way they can do that is either by Consent Orders or a Financial Agreement.

Consent Orders

If both parties have reached an agreement about parenting and/or property arrangements and would like to formalise that agreement then they can apply to the Family Court for Consent Orders. By reaching this agreement, it will become binding as a Court Order upon the parties.

If you and your partner jointly own a property, then you will be eligible for an exemption of stamp duty if your partner plans on transferring their interest to you.

Before making Consent Orders a Court must be satisfied that the agreement is ‘just and equitable’ and in relation to parenting must be in the best interest of the child(ren).

An Application can be filed any time after separation, but should be filed within 12 months of a divorce or 2 years of the breakdown of a de facto relationship.

Financial Agreements

A Financial Agreement is a contract between parties (whether it between a married couple or those in a de facto relationship). A Financial Agreement can be entered into at different stages of a relationship, such as:

Financial Agreements before marriage;
Financial Agreements before a de facto relationship;
During a marriage;
During a de facto relationship;
After divorce; or
Breakdown of a de facto relationship.

The Financial Agreement states how your assets, liabilities, financial resources will be divided in the event that your relationship breaks down.

The benefit of entering into a Financial Agreement means parties avoid having to go through the Court system and allows for greater flexibility when drafting the agreement.

Similarly to Consent Orders, each party is required to provide full and frank disclosure, otherwise there is a possibility that the agreement could be set aside.

It is important that before signing a Financial Agreement that you obtain independent legal advice as otherwise the agreement would not be binding.

Conclusion

In the event that you and your partner have come to an agreement and you would like to talk about your family law settlement, please contact one of our family law specialists here at Tiyce & Lawyers.

We’re are here when you need us.