Consent Orders vs Binding Financial Agreements: What’s the Difference?
After separation, one of the most important steps is making your property settlement legally binding. Two common options are Consent Orders and Binding Financial Agreements (BFAs). While both can finalise a settlement, they work in very different ways.
What Are Consent Orders?
Consent Orders are made by the Federal Circuit and Family Court of Australia. They:
Are filed with the Court (but you don’t need to attend a hearing).
Become legally binding and enforceable once approved.
Can cover parenting and/or property arrangements.
Consent Orders give families clarity and protection. If one party doesn’t follow the orders, the other can enforce them through the Court.
What Are Binding Financial Agreements?
A Binding Financial Agreement (BFA) is a private agreement between separating parties. To be valid, each party must:
Receive independent legal advice before signing.
Have the agreement drafted in strict compliance with the Family Law Act.
Key features:
BFAs are not filed with the Court.
They can be faster and more private.
They may not give the same level of enforceability as Consent Orders, and if technical requirements are missed, they can be set aside.
Which Option Is Right for You?
Consent Orders are often preferred when parties want certainty and enforceability.
BFAs may be useful where parties want privacy or where Consent Orders aren’t practical, but they carry more technical risks.
The best choice depends on your situation, the assets involved, and how much certainty you want for the future.
Why Legal Advice Matters
Choosing the wrong option can create costly problems down the track. Independent legal advice ensures your settlement is properly documented and protects you from future claims.
Need Help Deciding?
At Wallen Family Law, we offer fixed-fee services for both Consent Orders and Binding Financial Agreements. We’ll help you decide what works best for your family and finalise your settlement with clarity and care.
📞 Book a free 15-minute chat with us today to talk through your options.
Disclaimer: This article provides general information only and should not be relied upon as legal advice. Every family law matter is unique and requires specific legal guidance. Always seek professional legal advice for your specific situation.