When separating, it’s important to make your financial or parenting agreement legally binding. In Australia, there are two main ways to do this: through Consent Orders or a Binding Financial Agreement (BFA). Both have their place, but they work differently.
Consent Orders are approved by the court and have the same legal effect as if a judge made the decision. They are commonly used to formalise agreements about property settlement, parenting arrangements, or both. They are cost-effective, reliable and generally more difficult to overturn. The court must be satisfied that the outcome is just and equitable (for property) or in the best interests of the children (for parenting).
Binding Financial Agreements are private contracts and don’t require court approval. They offer more flexibility and privacy but also come with stricter technical requirements. Each party must receive independent legal advice and each solicitor must sign certificates confirming this. BFAs are often used in more complex matters or when parties prefer not to involve the court at all.
Which should you choose?
1. Choose Consent Orders if:
- You want court-approved, enforceable arrangements
- You are seeking a clean break after separation
- Parenting or superannuation splitting is involved
2. Choose a BFA if:
- You want to keep your agreement private
- You have a non-standard or tailored arrangement
- You are making an agreement before or during the relationship (pre-nup)
Each option has pros and cons. At Make Peace Family Law, we can help you understand which pathway suits your situation best and ensure your agreement is legally sound and future-proof.
