Formalising Financial and Parenting Arrangements After Separation Formalising financial and parenting arrangements after separation is critical to prevent potential further conflict. If you and your ex-partner separate, you may reach an informal agreement about the division of your finances and the care arrangements for your children. You both may start following the arrangement, but do […]
Formalising Financial and Parenting Arrangements After Separation
Formalising financial and parenting arrangements after separation is critical to prevent potential further conflict.
If you and your ex-partner separate, you may reach an informal agreement about the division of your finances and the care arrangements for your children. You both may start following the arrangement, but do not sign any formal documentation. As time goes by, your ex-partner may decide to stop complying.
Unfortunately, this situation is far more common than you might expect. Without formalising financial and/or parenting agreements, there is no legal basis to enforce the agreement.
As lawyers we generally find that the cost of preparing a legally enforceable agreement in the first instance is far less than the costs incurred should you need to engage in legal proceedings to resolve an informal agreement gone wrong.
This is why formalising any agreement reached about your financial and parenting arrangements is essential.
Your Finances
There are two ways you can formalise a financial settlement:
Court Orders
A Consent Order is obtained by filing an Application for Consent Orders with the Federal Circuit and Family Court of Australia (‘the Court’). A Registrar of the Court considers the application and agreement reached, and will make orders as sought should they consider the agreement to be ‘just and equitable.’
Financial Agreement
A Financial Agreement is a private contract entered into by both parties, after receiving independent legal advice. It is not required to be approved by the Court, however it is to be upheld by the Court if it is prepared and executed properly.
What option should you choose?
There are advantages and disadvantages to both options.
A Financial Agreement is often more time and cost efficient than a Court Order as no application needs to be made to the Court.
However, a Court Order is more easily enforceable. A Financial Agreement can potentially be set aside by a Court for various reasons.
Risks of not formalising the agreement
If you choose not to formalise your financial settlement:
Your Children
When it comes to your children, there are also two ways you can formalise their care arrangements:
Parenting Plans
A Parenting Plan is a written agreement signed by both parties outlining care arrangements for your children.
Court Orders
Similar to your finances, a Court Order for the care arrangements for your children is obtained by filing an Application for Consent Orders with the Court. A Registrar considers the application and agreement reached, and will make orders as sought, should they consider the agreement to be in the ‘best interests of the child.’
What option should you choose?
As with finalising financial arrangements, there are advantages and disadvantages to both options.
A Parenting Plan is far more time efficient and cost effective as it is not approved by a Court. However, it is not legally enforceable. Even though it is not enforceable, having a Parenting Plan is still better than relying on a verbal agreement. It may be helpful should you end up in Court proceedings.
On the other hand, a Court Order is legally enforceable, and consequences can arise should you or your ex-partner choose not to follow the terms of the Order.
Need Advice?
At Adelta Legal, we provide practical advice, tailored to your personal circumstances.
Informal agreements can quickly unravel, leading to stress, uncertainty and unwanted conflict and costs.
Our family law team can help you protect your interests and avoid potential future conflict with a formally documented agreement.
Read more on Property Settlement here and Children here.
Solicitor
e: nfazzari@adelta.com.au
p: 8415 5015
Solicitor
LL.B., BLang
Nicola graduated from the University of Adelaide with a Bachelor of Laws and a Bachelor of Languages.
Nicola commenced her legal career as the Associate to Senior Judicial Registrar Schirripa at the Federal Circuit and Family Court of Australia, where she discovered her passion for family law and gained valuable insight into the judicial system, legal processes, and dispute resolution mechanisms.
After concluding her Associateship, Nicola joined the Family Law Team at Adelta Legal. Nicola understands the stress and difficulty that family separation can cause. She is compassionate, empathetic and provides pragmatic advice to ensure that her clients achieve the best possible outcome in a timely and cost-effective manner.
Outside of the office, Nicola enjoys spending time with her family and friends, and during the footy season will often be found at Adelaide Oval supporting her beloved Port Adelaide Football Club.
Contact Nicola Fazzari
