How Do I Withdraw from an Agreement About Property Settlement?

Property settlement agreements can have significant legal and financial consequences, making it important to understand whether you can change your mind after reaching an agreement. Whether you are still negotiating, have signed documents or have formal Court orders or a Binding Financial Agreement in place, your options will depend on your individual circumstances. In this guide, the team at O’Sullivan Davies explains when you may be able to withdraw from a property settlement agreement and the factors that may affect your legal rights.

Withdrawing During Property Settlement Negotiations

If you think that you need to withdraw from an agreement about property settlement, your options will depend on whether and how the agreement has been formalised.

If the parties are still in negotiation: a party can withdraw an offer of settlement which has not been accepted at any time by giving the other party notice in writing. If proceedings in the Family Court are ongoing, it may be necessary for the party withdrawing the offer to make a further offer of settlement at the time they withdraw their previous offer.

Withdrawing Consent Before Court Orders Are Made

Parties can also withdraw their consent to an application for orders to be made by consent at any time before the orders have been made, even if the parties have signed documents which have been submitted to the Court.

Orders made by consent: orders which have been made by the Court with the consent of the parties are formal orders and can be only varied or set aside in very limited circumstances.

The reasons why a Court might set aside property settlement orders are limited, and include that:

• there has been a miscarriage of justice, due to circumstances such as such as fraud or duress;
• circumstances have arisen since the orders were made which make it impracticable for the orders to be carried out; or
• A person has not complied with the orders, and in the circumstances that have arisen as a result it is just and equitable to vary or set aside the order.

Setting Aside a Binding Financial Agreement

There are also limited reasons why a Court might set aside a Binding Financial Agreement (BFA), or make a declaration that a BFA is void or not binding on the parties. They include that:

• There was not strict compliance with the requirements for a BFA to be binding;
• The BFA was obtained by fraud;
• A party engaged in unconscionable conduct in making the BFA;
• A party to the BFA entered into it to defraud or defeat a creditor, or with reckless disregard for the creditor’s interests;
• Since the making BFA, a material change in circumstances relating to a child has occurred, and the child or their carer will suffer hardship if the court does not set the BFA.

If you wish to withdraw from a property settlement, it is important to obtain legal advice about your options as soon as possible, as delay may limit those options.

Speak with an Experienced Property Settlement Lawyer

If you are considering withdrawing from a property settlement agreement or need advice about your legal options, the team at O’Sullivan Davies can help. Contact our experienced property settlement lawyers today for practical advice and support tailored to your circumstances.