What are Consent Orders?
When you think ‘Family Law’, you probably think of Court rooms and heightened emotions. However, that is not always the case. There are also a large number of separated couples that are able to reach an agreement between themselves, and only require solicitors to formalize the agreement.
This is done through Consent Orders. Consent Orders are drafted by solicitors to reflect the terms of the agreement reached between the parties, and these documents are filed with the Court. These Orders can be made in relation to parenting or property matters, or both.
In the case of parenting matters, once these Orders are made by the Court they are legally binding upon the parties until the children are 18 years old. These Orders will set out the specifics of issues such as who the children live with, time spent with each party, how long term decision making is dealt with, and everything in between.
Even though the parties have reached an agreement regarding what they wish to occur, it is important to note that the Court does not simply ‘rubber stamp’ and approve every single Application for Consent Orders that is received.
After the Application is filed, a Judicial Registrar will review the Application to ensure that the agreement reached is in the best interests of the children as per the requirements in the Family Law Act.
An Application for Consent Orders can also be made in relation to property matters. You may think, if you have already decided how you want to split up the assets of the relationship, why waste legal fees formalizing things? Why not just get on with it and split things up?
There are several benefits to entering into Consent Orders for property matters. Firstly, these Orders will finalize the financial relationship between the parties. If there are no Consent Orders in place and the assets are distributed as per a private agreement there is nothing stopping one party from making an Application to the Court and ‘double dipping’ into the asset pool.
Further, if real estate is being transferred, then Consent Orders will exempt the parties from having to pay government registration fees and stamp duty. Depending on the value of the property, this exemption from stamp duty can be a very significant saving.
It is important to note that there are time limitations for property matters and Applications for Consent Orders must be made within 12 months from the date of divorce, or 2 years from the date of separation for de facto couples.