Parties often reach an agreement or “settle” their parenting and financial arrangements before a matter proceeds to the final hearing stage. Parties will need to have a document which reflects the terms of their agreement. Having a written record ensures that all parties are clear as to their rights and responsibilities. It also provides clear proof of the terms of the agreement should a dispute arise in the future and depending on the way the document is captured could also provide a mechanism through which the terms of the agreement can be enforced against the other party.

The way a settlement is recorded can be determined by the way settlement is reached.

Parenting plans

For children's matters, parents often work together informally and negotiate agreements amongst themselves. Whilst there is no need to put an agreement in writing, if is in writing and signed by the parties it can become a parenting plan. Alternatively a parenting plan can be drawn up. Parenting plans tend to only be used if legal proceedings have not commenced as they are not enforceable.

They also have the legal effect of overriding consent orders that exist at the time the parenting plan is entered into. Many clients may unwittingly enter into parenting plans to appease the other party falsely believing that the court orders will trump the parenting plan. It is important that practitioners advise their clients so any decisions made after courts orders are properly informed.

See Parenting plans.

Consent orders

For both children's and financial matters, parties can reach an agreement outside the court yet still wish for their agreement to be legally binding. In these circumstances, the parties will make an application to the court for consent orders. The court will make orders reflecting the terms agreed upon between the parties. These orders will be legally binding.

Strictly speaking, financial agreements are a form of consent orders. They can be entered into before, during or after a marriage or de facto relationship. However, given that they are used in very specific circumstances, they have been covered separately in Financial Agreements.

Financial agreements can be used to record an agreement in place of consent orders in financial matters.

See also Financial agreements.