When it comes to finalising a family law property settlement in Australia, there are two primary methods available: obtaining a court order by consent or entering into a binding financial agreement. Each option has its own process and requirements, offering individuals the flexibility to choose the most suitable approach for their circumstances.Court Order by Consent
One way to formalise your family law property settlement is through a court order obtained by consent. This method allows couples who have reached an agreement on their property settlement to apply to the Family Court. By doing so, they can seek court approval and have their agreement turned into legally binding orders without having to go through formal court proceedings.
The process involves submitting an application to the Family Court, along with the proposed consent orders outlining the agreed-upon terms of the settlement. It is important to note that the court will review the orders to ensure they are just and equitable for both parties involved. If the court approves the consent orders, they will become legally binding, providing certainty and finality to the property settlement.Binding Financial Agreement
The second approach to formalising a property settlement is through a binding financial agreement (BFA). This agreement can be entered into before, during, or after marriage or separation. Unlike the court order process, a BFA does not require court approval, but it does involve specific legal requirements that must be met.
To create a valid BFA, both parties must seek independent legal advice from their respective solicitors. The solicitors will provide advice on the advantages, disadvantages, and implications of entering into such an agreement. This ensures that both parties have a clear understanding of the legal consequences and safeguards their individual interests. It is crucial for the agreement to be properly drafted, signed, and witnessed to maintain its validity.
A binding financial agreement allows couples to customise their property settlement based on their unique circumstances and preferences. It offers flexibility and control over the settlement process while avoiding the need for court involvement. However, it is important to note that strict adherence to the legal requirements and proper legal advice are essential to ensure the agreement's enforceability.
Both methods offer a fair and legally binding resolution, providing you with clarity and security for the future. To determine the most suitable method for your situation, please feel free to contact us and book a free consultation