While a Court Order and Binding Financial Agreement both serve to finalise financial relationships following a separation, the question of the most appropriate method is often asked to ensure a fair settlement. If parties are unable to agree on an overall property settlement, it may be necessary to apply to the Family Law or Federal Circuit Court for Financial Orders. There are a number of things to consider prior to applying for Financial Orders through the Court, most importantly that the Court needs to be satisfied that the Orders are just and equitable (fair to both parties). Binding Financial Agreements are not approved by a Court and there is no requirement that they be just and equitable. There may be practical reasons which lead parties to agree upon the terms of an agreement apart from fairness which is why a Binding Financial Agreement is preferred. In relation to preparation of each document, applying for Court Orders is generally a simpler and less expensive process compared to a Binding Financial Agreement. This is because Binding Financial Agreements must be drafted according to the circumstances of each particular matter, whereas Court Orders are supported by an application prepared in accordance with a particular Court approved form. Irrespective of which option you decide to pursue, independent legal advice should be obtained at the earliest possible opportunity.