Top 4 Reasons Why You Need Consent Order When Separating From Your Partner Or Spouse
Once divorcing partners reach a settlement through another route apart from the Family Law Courts, it is important to ensure that the agreement becomes legally binding. This will help to protect either party from further disputes in the future. This is why consent orders are drafted to record the necessary terms of the settlement, and provisions relating to the costs. Read on to know why you should get a consent order before you divorce.
Stamp Duty Exemption
Depending on the territory or state that your property is situated in, you may be forced to pay stamp duty on your property transfer if you have no Consent Order. When spouses have a shared property, they will have to transfer a share of the property to one spouse after divorce. As a result, one spouse may need to obtain a new mortgage with his/her name on it, especially if they want to borrow funds to pay the other spouse. With consent orders, you will not be required to pay for stamping at your local Land Titles Offices, which will save you money in the long run. Apart from real estate, this can also apply to other shared assets, such as motor vehicles.
Even if you trust each other, this trust will not give you any legal protection. This is because one spouse may feel shortchanged and decide to make an application to the Family Law Court. If you truly trust your ex-husband or wife, then this is enough reason why you should get a Professional Legal Form from the courts. This will be a legally binding agreement and it will also establish a form of responsibility towards each other. In actual fact, getting a consent order will only assert whatever trust already exists between the two of you.
Guarantee a binding agreement
With Consent Orders, you will be confident of having an agreement that is binding. This means that all parties involved in the divorce must adhere to the terms of the agreement. Most couples who divorce may opt for an informal agreement and organize property transfer and payments. However, these agreements are never binding as they are not formal, and one partner may reconsider their decision in the future. As a result, the aggravated spouse can file an application with the courts seeking some of the other ex-spouse’s superannuation.
Protect future assets
Obtaining consent orders will help to protect any future assets that you acquire. For example, if one spouse gets a large inheritance after their divorce, the other spouse can get a share of the inheritance if they do not have a consent order. Even if the other partner already got his or her divorce settlement, he/she can claim a share of your new assets if you have no consent order.
Acquiring consent orders is not really a hassle or an additional expense for divorcing spouses. All you have to do is provide adequate financial details to your legal team and they will handle the rest, including dealing with the Family Law Courts. It is advisable that you get a consent order before you complete your divorce proceedings. If you leave things to chance, you may find yourself with new financial applications in the future. Avoid a more expensive, time-consuming, and stressful divorce settlement by getting a consent order.