What is the difference between a Binding Financial Agreements and Consent Orders for Matrimonial Property

Binding Financial Agreements and Consent Orders are both documents used in a Matrimonial Property matter (be in a marital or de facto relationship) settlement.

Consent orders

When both parties have reached an agreement that they would like to make official and legally binding, they can apply for consent orders. Consent orders are:

• An enforceable record of settlement by Court Order

• Legal advice and preparation is not necessary but suggested

• Financial consent orders may consider details such as income, assets, liabilities, superannuation, and other financial information in order to consider the parties standing

• Orders must be found to be ‘just and equitable’ by the courts

Financial Agreement

Binding financial agreements are a formal contract that can be entered into before, during or after the relationship. Factors relevant to Binding Financial Agreements are:

• It is a legally binding agreement between the parties without the need for Court Intervention.

• Offers more flexibility as it is a private contract

• Parties cannot make an application to the courts if they consider the contract to not be ‘just and equitable’

• Litigation can only occur regarding the failure to prepare the document properly where there has been lack of full disclosure or offer irregularity.

  
  

For more information in regard to Financial Agreements and Consent Orders, please contact our office on: +61 3 94163463 or email: email@osullivanandruffilli.com.au