What’s the difference between a consent order and a financial agreement?

by Aubrey D.

in Finance

Reading Time: 3 mins read

Both consent orders and BFAs are legally binding when a relationship ends. They have some important differences, though.

What’s the difference between a BFA and a consent order?

Getting involved with the court system

Family courts only make consent orders if they’re “just and equitable,” which means fair and reasonable.
BFAs: are contracts between two parties that don’t need approval from a court.

A court will review consent orders to make sure they’re fair and equitable. As a safety measure against financial abuse, the Family Court will only accept agreements it considers fair.
Terms don’t have to be fair in BFAs. It’s possible for one party to get a better settlement. To make sure the agreement is fair, you need independent legal advice.

For Consent Orders, neither party needs to get legal advice or have an agreement witnessed by someone else.
BFAs: Both parties need their own lawyers. It’s usually extra.

Financial agreements, property agreements, and parenting agreements can all be covered by consent orders.
BFAs: Only deal with money or property. Consent Orders are required if you need parenting matters.

The court enforces consent orders through a simple process.
BFAs: Only enforceable if a court gets involved. The court must first determine if the agreement is enforceable, which can be time-consuming and expensive.

For couples with straightforward financial situations without complex assets or debts, consent orders are a better option.
A Consent Order is the best option if both parties want a fair split and want the court to review the agreement.
Consent Orders are the best solution for parents with parenting and property disputes.
BFAs can be expensive to draft because both parties need independent legal advice. Especially in amicable separations, consent orders can be more cost-effective if you want to minimize legal fees.
Especially if one party isn’t upholding its end of the deal, consent orders are more enforceable.

It allows for such flexibility if a couple has mutually agreed on a division that might seem unfair to outsiders – for example, one spouse might retain a larger percentage of assets for personal reasons.
Couples with privacy concerns: A BFA lets them settle property matters privately.
Couples can include future inheritance provisions or specific time periods in a BFA that Consent Orders don’t typically cover.

Please contact our office in Brisbane or Sydney if you have any questions about consent orders