Consent Judgments Vs. Settlement Agreements

By Jennifer VanBaren

A consent judgment differs from a settlement agreement, yet contains similarities. A settlement agreement outlines details of an agreement reached between two parties. A consent judgment is a court order by a judge.

Consent Judgment

A judge issues a consent judgment based on an agreement between parties in a lawsuit. The parties typically reach an agreement between themselves and present it to a judge. The judge issues the consent judgment, which makes the decision final and enforceable by law.

Settlement Agreement

A settlement agreement is used when two parties settle on an issue. This agreement outlines details of their agreement and is typically used in divorces. Settlement issues are usually agreed upon without going to court.

Legal Standing

A consent judgment is enforceable by law and typically requires action from one party. If the party fails to deliver the judgment requirements, the other party takes legal action, if desired. A settlement agreement is a binding legal contract. Action is usually required from both parties, and if one party fails to comply with the agreement, the other party takes legal action if they desire.