What are the Benefits of Consent Orders
The benefits of a Consent Order are many. Below is a list of seven reasons why they are a great solution for an amicable financial agreement.
Key Purposes and Benefits of Consent Orders:
- Legally Binding: Once approved by the court, the agreement has the same legal force as if a judge had made the decision after a contested hearing.
- Certainty: They provide a clear and final record of the agreed arrangements, reducing the likelihood of future disputes. This is why legal drafting is very important.
- Enforceability: If one party fails to comply with the terms of the Consent Order, the other party can seek enforcement through the courts.
- Cost and Time Effective: They are generally a quicker and less expensive way to finalise matters compared to going through a full court trial.
- Control over Outcome: Parties have direct input and control over the terms of their agreement rather than having a decision imposed by a judicial officer.
- Reduced Stress: Avoiding protracted court battles can significantly reduce the strain on all parties involved because you maintain control over the outcome. In parenting matters, this is especially true for the children.
- Reduced Conflict: This can help to minimise conflict between parties, especially when children are involved. The pace of the negotiations ensures that no additional street is placed on the parties, people move ahead when they are ready.
- Flexibility: Allows parties to tailor the orders to their specific circumstances and needs. Nobody is a better judge of what works best in your situation than you.
When Are Consent Orders Typically Used?
Consent Orders are commonly used in the following situations:
- Property Settlement: Consent Orders are used to divide assets, liabilities, and financial resources between parties according to what’s best for your circumstances.
- Parenting Arrangements: To formalise parenting arrangements, access to children, and decision-making responsibilities for children.
- Spousal Maintenance: To outline the payment of financial support from one party to the other over a given period of Time under given circumstances.
Key Benefits of Consent Orders
Efficiency and Speed
Consent Orders can often be obtained much more quickly than going through a full court process. Once both parties agree on the terms, the minute order can be drafted in 24 hours and can be filed with the Family Court. Consent Orders are usually processed without the need for a court hearing or dealt with administratively. This allows both parties to resolve and document their matters efficiently and move forward without delays.
Control Over the Outcome
Unlike a court determined decision, Consent Orders give both parties control over the terms of the agreement. This means that both parties can design the orders to suit their own specific needs rather than having a third party decide what’s best for them. This level of control usually leads to more satisfying outcomes for both parties.
Reduced Emotional Trauma
Family law disputes, particularly those involving children or long-term relationships, can be difficult. Consent Orders allow parties to resolve their differences without the added stress of a court battle. By avoiding adversarial litigation, the harm to all the family, especially younger children, can be reduced.
Minimised the Impact on Children
In cases involving children (parenting orders), Consent Orders can agree to help establish stable and consistent parenting arrangements. If parents can agree on living arragements, parental access, and the decision making responsibilities of each parent, parents can minimise disruption to their children’s lives and ensure the best interests of their children.
Privacy
Unlike court hearings, which are often public, Consent Orders are a private process. The parties can negotiate and reach an agreement without airing personal matters in a public courtroom. This has proven to be quite important for some high-profile individuals or those people who value their privacy.
Finality
Once Consent Orders are made, they are legally binding and final. This provides both parties with certainty and closure, allowing them to move on with their lives without the uncertainty of ongoing disputes.
“Pursuant to Section 81 of the Family Law Act 1975, the parties acknowledge that these Orders are intended to operate as to finally determine the financial relationship between the parties to the marriage and avoid further proceedings between them.”
Enforceable agreement
Consent Orders are enforceable by the court, which means that if one party fails to comply with the terms, the other party can seek enforcement through legal avenues. This provides a level of security and assurance that the agreement will be upheld.
Possible Tax and Financial Advantages
In some cases, the benefits of a Consent Order can be structured to optimise tax outcomes or reduce possible tax situations. The division of superannuation or property can be handled in a way that minimises tax liability. This can make the financial settlement more efficient and beneficial for both parties.
Flexibility in Complex Situations
Consent Orders where parties work effectively together can address some complex family law issues, such as international relocation, business ownership, or significant and complex asset pools. They allow for creative and tailored solutions that might not be possible through a court-imposed decision.
Reduced legal expenses
While there may be some legal costs involved in drafting and filing Consent Orders, they are significantly lower than the cost associated with legal services associated with protracted litigation.
Preservation of Relationships
In most cases, the benefits of a Consent Order, especially when children are involved or where parties may need to maintain a relationship in the future, Consent Orders can help preserve a sense of cooperation and respect. By agreeing on terms amicably, parties can create a better long term relationship.
