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.

Consideration of fairness

• 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.

Documents for legal advice and witnessing.

• 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.

Can they cover anything?

• 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.

What’s more enforceable?

• 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.

What’s better, a consent order or a financial agreement (BFA)?

Consent orders: When to use them:

• 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.

Why you should get a BFA:

• 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