How To Formalise Agreements in Family Law
Consent Orders vs Financial Agreement
After separation, it’s important to formalise any property settlement or financial arrangement to ensure it is legally binding and enforceable. There are two main ways to do this in Australia: Consent Orders and Binding Financial Agreements. While both options can record how assets, liabilities, and superannuation will be divided, they work in different ways and suit different circumstances. This guide explains each option to help you understand which approach may be right for you.
Consent Orders
When you and your former partner reach an agreement on how to divide your property, finances, or parenting responsibilities, you may wish to make that agreement legally binding. A Consent Order allows you to do exactly that, without needing to go to court.
Consent Orders are formal documents lodged with the Family Court. Once approved, they carry the same legal weight as orders made by a judge. These orders can cover the division of property and superannuation, payment of money, or arrangements for children. The Court reviews each application to ensure the outcome is fair and reasonable, giving both parties added certainty and protection.
This process is ideal if both parties are cooperative and the terms have already been agreed. With properly drafted documents and the right legal advice, Consent Orders provide streamlined, enforceable way to finalise your property or parenting matters, so everyone can move forward with clarity and confidence.
✔ No Court Hearing Required
✔ Legally Binding and Enforceable
✔ Reviewed by the Family Court for fairness
✔ Covers property, parenting and superannuation
Binding Financial Agreements
A Binding Financial Agreement is a private contract between two people that outlines how their property, assets, and financial responsibilities will be handled in the event of separation. It is not filed with the Court, and the agreement itself is not reviewed by a judge. Instead, it becomes legally binding when both parties receive independent legal advice and sign the agreement with the required certifications.
These agreements can be made before a relationship begins, during a relationship, or after it ends. They’re often used by couples who want to keep things private, tailor their agreement to their own circumstances, or protect specific assets.
Because BFAs are not subject to court review, they must be drafted with care. Each party must understand the terms and receive proper legal advice before signing. When done correctly, a Financial Agreement provides peace of mind and helps prevent future disputes by clearly setting out who gets what.
✔ Private and flexible
✔ No court involvement required
✔ Can be made before, during, or after a relationship
✔ Each party must get independent legal advice
👉 To learn more in depth about property settlements in family law, read our Property Family Law Brochure.
Why It Matters
Agreeing on how to divide your property or finances is a major milestone, but without formalising that agreement, it may not be legally enforceable. Verbal agreements or informal written arrangements don’t prevent either party from making further claims in the future, even years after separation.
By formalising your agreement through Consent Orders or a Binding Financial Agreement, you create legal certainty and finality. These documents set out exactly who receives what, and protect both parties from future disputes, unexpected claims, or financial stress down the track. They also help clarify responsibilities for things like superannuation, mortgages, and liabilities, so there’s no confusion later on.
Formalising your settlement gives both parties the confidence to move forward, knowing the agreement is final, binding, and legally secure.
How We Can Support You
We understand that this stage can feel overwhelming, especially when you’re still adjusting emotionally or financially after separation. Our family law team will explain your options clearly, help you decide which method suits your circumstances, and ensure your agreement is drafted correctly and compliant with NSW law.
With the right guidance, you can protect your future and achieve a clean break so you can move forward with certainty and peace of mind. Get expert legal support today by reaching out to us at admin@allwrightbourke.com.au or give us a call at 1300 225 297 (1300 ABL AWS).