There are only 2 ways your property settlement agreement can be documented so it is legally binding and recognised at law.
Only after considering your own personal circumstances, can a lawyer advise you of the advantages and disadvantages to you of documenting your property settlement agreement using either consent orders or a binding financial agreement.
Differences between consent orders and a binding financial agreement include:
- Consent orders must be made by the Family Court. The court will only make the consent orders you have agreed on if the court thinks they are “fair and reasonable”
- The terms of a Binding Financial Agreement need not be fair
- There is not independent scrutiny given to a Binding Financial Agreement by a court or any other body, nor are its terms reviewed by a court or any other body
- A Consent Order is filed in the Family Court
- A Binding Financial Agreement is not filed or registered anywhere
- You can use consent orders to document your parenting and property settlement agreement in the same document however you cannot document your parenting agreement in a Binding Financial Agreement
- To enter a Binding Financial Agreement, both spouses must each have their own lawyer give them independent legal advice and sign a Certificate of having done so
- Sometimes a Binding Financial Agreement is the better option to extinguish spousal maintenance rights.