Binding Financial Agreement or Consent Orders

Binding Financial Agreement or Consent Orders: Everything You Need to Know

When a married couple decides to separate, it’s not just an emotional upheaval but a financial one as well. The division of assets and liabilities can often be a contentious issue, leading to lengthy court battles and expensive legal fees. However, there are two options available to couples that can help them avoid this situation: binding financial agreements (BFAs) and consent orders.

What are Binding Financial Agreements (BFAs)?

BFAs are private agreements made between the separating couple outlining how their assets and liabilities will be divided. These agreements can be made at any time during the relationship – before, during, or after marriage – and can cover everything from property, investments, debts, and even spousal maintenance. To be legally binding, both parties must have independent legal advice and sign the agreement voluntarily.

What are Consent Orders?

Consent orders on the other hand, are legally binding orders made by the Family Court or the Federal Circuit Court. They can cover the division of property, spousal maintenance, child support, and parenting arrangements. Consent orders can only be made after the couple has separated and reached an agreement. This agreement can be reached through mediation, negotiation, or through their lawyers. The agreement is then presented to the court for approval, and once approved, it becomes legally binding.

What are the advantages of using BFAs or Consent Orders?

One of the most significant advantages of using BFAs or consent orders is that they can save couples a lot of time and money. Instead of going through the court system and letting a judge make decisions about the division of assets, couples can make their own decisions and come to an agreement that works for them. Additionally, both options provide more certainty for the future because the agreements are legally binding and enforceable.

Another benefit of using BFAs or consent orders is that they can help to reduce conflict and stress. By agreeing to the terms of the separation beforehand, couples can avoid lengthy court battles and the emotional turmoil that comes with them. This is especially beneficial for couples who have children, as it allows them to focus on their children’s well-being, rather than fighting over assets.

Conclusion

In summary, binding financial agreements and consent orders are two legal options that couples can use to avoid lengthy and costly court battles over asset division. Both options provide a way for couples to make their own decisions about how to divide their assets and liabilities, and both are legally binding and enforceable. If you’re going through a separation, it is highly recommended that you consider using one of these options to help make the process as smooth and stress-free as possible.