When ex-partners reach an agreement for the settlement of their financial matters upon separation, there are two ways this agreement can be legally finalised: consent orders or a financial agreement. It is important to finalise family law financial matters through one of these methods, as informal agreements can easily collapse. In this blog, we review the two most common ways of finalising family law financial agreements, and explore factors you should take into account when deciding which avenue is most appropriate for you.

What are Consent Orders?

A consent order is a written agreement that is approved by a court. It can cover many family law matters, such as parenting arrangements for children as well as financial arrangements for property or maintenance. Consent orders are lodged with the Federal Circuit and Family Court of Australia (the “Court”) and once approved, are stamped and take effect as a court order. The Court must be satisfied that the consent orders are just and equitable and/or in the best interests of the child/children (if applicable).

In order to obtain a stamped consent order, two documents must be filed — the application for consent orders, and the proposed orders. The application will contain important details of the parties, such as assets, liabilities, income and superannuation. The proposed orders should set out the orders that the parties have agreed on and are asking the Court to make.

Financial agreements

A financial agreement is not lodged with a court and is rather a private contract agreed on between the parties. In order to ensure the agreement is legally binding and enforceable, both parties are required to receive independent legal advice from different legal professionals about the effect of the agreement on their rights, and the advantages and disadvantages of entering into it, before signing.

Considerations when deciding which option is best for you

When deciding which avenue is more appropriate for your circumstances, there are a variety of factors to take into account. Some of these include:

• Spousal maintenance. Consent orders can cover matters pertaining to spousal maintenance, however, a financial agreement may be a safer option to guard against any future application to extend or increase maintenance. It is important to keep in mind that you are not confined to either option to settle your financial arrangements, and a hybrid approach — for example, a financial agreement dealing with property alongside consent orders for parenting — could allow you to finalise your settlement.

• Level of scrutiny. A financial agreement is not subject to judicial scrutiny and is a private agreement. This means an agreement can be struck even where the division may be perceived as unfair to one party. By contrast, for a court to approve consent orders, it must be satisfied that the orders are just and equitable.

• Timing. Consent orders can take a period of time to be reviewed and approved by the Court, whereas a financial agreement takes effect once both parties have signed it and the requirements for a binding agreement — including independent legal advice for each party — have been met.

• What the court considers for property orders. If you are seeking property orders, it’s important to understand the factors a court now takes into account. Following the Family Law Amendment Act 2024 (Cth), which came into effect on 10 June 2025, the factors relevant to a property settlement have been consolidated into a dedicated provision — section 79(5) of the Family Law Act 1975 (Cth) for married couples, and the equivalent section 90SM(5) for de facto couples. These replace the previous practice of cross-referring to the spousal maintenance factors in section 75(2), which has since been renamed “considerations relating to current and future circumstances” and now applies specifically to maintenance rather than property. To learn more about these factors, see our blog here. Some of the matters the Court may consider under section 79(5)/90SM(5) include:
  • The age and state of health of each of the parties;
  • The income, property, financial resources and earning capacity of each party;
  • How the length of the marriage or relationship has affected the earning capacity of the party seeking an adjustment;
  • Care arrangements and responsibilities for any children of the relationship, including the need for either party to provide appropriate housing for a child under 18 in their care;
  • The effect of any family violence one party has subjected or exposed the other to, including its impact on that party’s current and future circumstances; and
  • Any wastage of assets, such as through reckless or intentional conduct, and the parties’ respective liabilities.

Contact Us

Our experienced family lawyers can assist you with determining which family law settlement document is most appropriate for you in your circumstances. If you need legal advice in a family law matter, please do not hesitate to contact us in North Sydney on 9963 9800 or via our contact form.