Financial Consent Orders: Examples and Process

Financial consent orders are critical in resolving property and financial matters following a separation or divorce.

These legally binding agreements, once approved by the court, enable both parties to formally divide their assets and liabilities in a manner recognised by the legal system.

This helps to ensure that each party adheres to the agreed terms, preventing further disputes or financial dishonesty from affecting the post-separation process.

What are Financial Consent Orders?

Financial consent orders are court-approved agreements that stipulate how a couple’s assets and liabilities will be divided upon separation. These orders can cover a wide range of financial matters, including:

1. Property division
2. Investments
3. Superannuation
4. Debt allocation

The key advantage of consent orders is that once the court approves them, they carry the same legal weight as a judicial order made following a court hearing. This means that both parties are legally obligated to adhere to the terms outlined in the agreement.

Also read: What are the Legal Implications of Refusing To Sign Consent Orders?

Examples of Financial Consent Orders

Financial consent orders can be tailored to address the unique financial circumstances of each separating couple. Some common examples include:

1. Property Division: The agreement may outline terms for the sale of a property or stipulate that one party retains the family home while the other receives a corresponding financial adjustment. Financial adjustments can include a lump sum payment or a series of payments, to ensure an equitable division of the property’s value.
2. Superannuation Splitting: Orders may detail the division of superannuation entitlements, ensuring that both parties secure their future retirement funds. The specifics of the split depend on factors such as the length of the marriage and the existing balances in the superannuation accounts, taking into account the contributions made by each party during the marriage
3. Debt Responsibility: The orders can clearly specify who is responsible for marital debts, such as mortgages or credit card balances. This ensures that each party takes on a fair portion of the liabilities accumulated during the marriage, preventing future legal disputes and safeguarding both parties’ credit standings.

🔑 Key Takeaway: Financial consent orders provide a structured approach to separating financial ties, ensuring that assets, superannuation, and debts are distributed equitably.

The Process of Obtaining Financial Consent Orders

Obtaining a financial consent order involves several key steps:

1. Negotiation and Agreement: Both parties must agree on the division of their financial assets and liabilities. This stage often involves negotiations, which can be facilitated by mediators or lawyers to ensure a fair outcome that considers both parties’ financial circumstances. The agreement must comprehensively address all significant assets, including real estate, investments, and pensions.
2. Formalising the Agreement: Once an agreement is reached, it must be put into writing. This document should clearly and concisely outline the agreed-upon terms, leaving no room for ambiguity or potential future disputes. Lawyers often draft these agreements to ensure compliance with legal standards.
3. Submitting to the Court: The written agreement, along with all necessary forms, is then submitted to the court for review and approval. The court will only review the agreement once all required documents are correctly completed and submitted.
4. Court Review and Approval:The court reviews the agreement to ensure that it is just and equitable, complying with legal standards and fairly representing both parties’ interests. If any issues are identified, the court may request adjustments before granting approval.

Also read: How Much Do Consent Orders Cost in Australia: 2024 Update

Importance of Seeking Legal Advice

Financial consent orders play a vital role in resolving property and financial matters following a separation or divorce.

By providing a legally binding framework for the division of assets and liabilities, these agreements help minimise conflict, ensure fairness, and protect the financial interests of both parties.

Given the complexity of financial matters and the potential for significant long-term consequences, obtaining legal advice is crucial when drafting and finalising financial consent orders.

Legal professionals can provide valuable insights into the implications of any proposed financial division, ensure that the agreement complies with legal standards, and protect their clients’ interests.

Seeking the guidance of an experienced family lawyer is essential to navigating this complex process and achieving an outcome that sets the foundation for a stable financial future.