Consent Orders or Financial Agreements?
When it comes to resolving Family Law disputes, there are two options open to the parties for a property settlement. They can either enter into a binding financial agreement, or have the Court make consent orders.
But what is the difference?
Some differences between binding financial agreements and consent orders when used for documenting a property settlement include:
Consent orders do not require both parties to be legally represented. Therefore, where one party does not want to obtain legal advice, the settlement can proceed via consent orders prepared by the other party’s practitioner.
Financial agreements are not required to be reviewed by a court to be effective, whereas consent orders are and settlement terms that appear unjust or inequitable are likely to be requisitioned and potentially dismissed.
Financial agreements can provide a release from spousal maintenance, whereas consent orders cannot.
The grounds under which a financial agreement can be set aside differ to those applying to consent orders.
Some common mistakes made when drafting a binding financial agreement include:
not understanding the requirements of the Family Law Act relating to financial agreements.
inadequate discovery in relation to defining the asset pool.
not giving due consideration to whether the settlement would be considered just and equitable if brought before a court.
If you want to know more about whenther consnet orders or a binding financial agrement is right for you, then contact Grice Legal to get the expert advice you need.
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