About Mediation

Is mediation legally binding?

In short: Mediation itself is not legally binding — it is a voluntary process. However, agreements reached in mediation can be made legally binding by formalising them as consent orders (filed with the court) or a binding financial agreement (signed by both parties with independent legal advice).

The difference between the process and the outcome

The mediation session is voluntary and confidential — neither party is compelled to agree to anything. But once an agreement is reached and properly formalised, it becomes as enforceable as any other court order or contract.

How to make a family agreement legally binding

Agreement typeHow it is formalisedLegally binding?
Parenting planWritten and signed by both parentsNot a court order — good faith agreement
Consent ordersFiled with and approved by the courtYes — enforceable as a court order
Binding financial agreement (BFA)Signed by both parties with independent legal adviceYes — binding contract
Workplace or commercial settlement deedSigned written agreementYes — enforceable contract

What happens if someone breaks the agreement?

A consent order can be enforced through the Federal Circuit and Family Court of Australia — breach can result in fines, community service, or imprisonment for serious contraventions. A binding financial agreement or settlement deed can be enforced through the courts as a breach of contract.

Should I get legal advice before signing?

Yes — always. A lawyer should review any draft agreement before you formalise it. For binding financial agreements, independent legal advice is a legal requirement — without it the agreement can be set aside. See consent orders vs BFAs explained.

Sources

Reviewed byDan Toombs·Last reviewed 13 August 2026
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