What if we reach an agreement at mediation?
June 14, 2023
If you reach an agreement at mediation you have a few options:
- If it is a parenting matter the agreement can be put in writing and signed and it becomes a Parenting Plan. A Parenting Plan is not a legally binding document but for many couples it is all they need. It has the advantage of flexibility. If one person wants to change the plan they can try to negotiate changes. If changes can’t be negotiated or one person does not comply with the plan, the other can make an application to court and put the plan into evidence. A Parenting Plan can have a provision that it is to terminate or is to be reviewed at a specified time. At that time the parties can choose to return to family dispute resolution/mediation to attempt to negotiate future arrangements.
- The parties can agree to formalise the parenting agreement by way of consent orders. For that to occur an Application for consent orders and draft consent orders will need to be prepared, usually by a lawyer. Those documents are then signed by both parties and filed in court where they are considered by a Registrar. If the Registrar is satisfied with the application orders will be made. If either person breaches those orders the other can apply to court to have the other person punished for breaching the orders. Once orders are made they can generally only be changed by agreement or if there has been a material change of circumstances.
- If it is a property matter the agreement can be put into writing and signed and becomes a Heads of agreement. It is not a legally binding document. However if one person resiles from the agreement the other can put the agreement into evidence and in some cases an order for costs may be made. Similar to a parenting plan, the agreement doesn’t become a legally binding document until there is an Application for consent orders and draft consent orders drawn up and signed and lodged in court and is approved by a Registrar (if they consider it to be just and equitable). Alternately the agreement can be formalised by way of a Binding Financial Agreement. Those agreements are only legally binding if each party has had independent legal advice and the lawyers sign a certificate to say they have given advice to their clients about the advantages and disadvantages of entering into the agreement.
- In property matters it is generally important that any agreement is formalised by way of consent orders or a Binding Financial Agreement. If it is there will be no stamp duty payable upon any transfers of property between the couple. If it is not there is nothing to stop either person from making an application to court, sometimes years later, seeking more of the property.
A mediator is able to assist you with preparing a Parenting Plan or Heads of agreement. It will assist if you have had advice from a lawyer prior to mediation and they will be able to assist you in formalising any agreement.