with Melody van der Wallen, Principal Lawyer at Wallen Family Law

Reaching an agreement after separation is a huge step forward — but until it’s made legally binding, it may not be enforceable.

Many people don’t realise that informal or verbal agreements can fall apart later, even after months of cooperation.

Melody van der Wallen, Principal Lawyer at Wallen Family Law, says this is one of the most common issues she sees. “People often tell me they’ve agreed on everything, and that’s great — but if it’s not formalised properly, either person can change their mind at any time,” she explains.

Why Formalising Matters

Formalising your agreement ensures it is recognised and enforceable under the Family Law Act 1975 (Cth).

It provides clarity, protects both parties, and prevents future disputes about what was said or promised.

“Even the most amicable separations can go off track if the agreement isn’t properly documented,” Melody says. “Once it’s formalised, you both have certainty and closure.”

Two Main Ways to Formalise an Agreement

In family law, agreements can be made binding in two main ways — through Consent Orders or a Binding Financial Agreement (BFA).

“They both make the outcome legally enforceable,” Melody explains, “but they’re used slightly differently.”

Consent Orders are approved by the Federal Circuit and Family Court of Australia. They can cover both parenting and property arrangements.

Once approved, they have the same legal effect as if a judge made the orders after a hearing — but without going to court.

Binding Financial Agreements are private contracts that can deal with property division or spousal maintenance.

Each person must have independent legal advice for a BFA to be valid. “If that advice isn’t properly documented, the agreement won’t hold up,” Melody notes.

Parenting Agreements vs Parenting Orders

Parents can record arrangements in a Parenting Plan or apply for Parenting Orders by consent.

A Parenting Plan is flexible but not legally enforceable. Parenting Orders are binding and can be enforced if one parent doesn’t comply.

“If you want security and accountability, formal orders are the safer option,” Melody says. “They protect both parents and the children by removing uncertainty.”

What Happens if You Don’t Formalise It?

Without formal Consent Orders or a Binding Financial Agreement, your arrangement is only based on goodwill.

Either party could later bring a claim seeking a different division of assets subject to time limits or a change in parenting time.

“It’s heartbreaking when someone assumes everything is settled, only to be served with new proceedings years later,” Melody says. “Formalising the agreement prevents that from happening.”

Quick Answers

What’s the difference between Consent Orders and a Binding Financial Agreement?
Consent Orders are approved by the Court and can include parenting and property matters. A Binding Financial Agreement is a private contract covering financial issues only.

Do we both need lawyers?
For Consent Orders, it’s not mandatory — but strongly recommended. For a Binding Financial Agreement, both parties must have independent legal advice.

Can we apply for Consent Orders ourselves?
Yes, but most people use a lawyer to ensure the documents meet all legal requirements and won’t be rejected by the Court.

Are Parenting Plans enforceable?
No. They’re useful as a guide but can’t be enforced by the Court. Parenting Orders, however, are binding.

Why should we formalise if we already agree?
Because circumstances change. Formalisation gives you protection, clarity and closure — ensuring your agreement stands the test of time.

From Melody

“Reaching agreement is a positive step — but formalising it is what gives you peace of mind. It transforms goodwill into legal security, protecting both you and your family for the future.”

– Melody van der Wallen, Principal Lawyer, Wallen Family Law