Property settlement after separation
When a couple who share their property and financial assets separate, it can be difficult to split these assets in a fair and equitable way. How the assets will be divided depends on more than just the financial contribution of each partner, and can be further complicated by any shared financial obligations or joint debts.
Our Property and Financial Settlement Lawyers Melbourne can assist you with your divorce property settlement to ensure that you walk away from the separation with a fair settlement.
What is a Property Settlement Agreement?
A property settlement agreement in the form of a binding financial agreement (BFA) is a contract between you and your spouse that settles all property issues in the divorce process. A BFA will cover everything from who gets what, to what happens to the house, car, and other items that were purchased during the marriage.
If you and your spouse decide that it would be best to have your BFA drafted by an lawyer, they will provide legal advice and help you determine how best for dividing property. In fact to have the BFA validated, it needs independent legal advice certificate signed off by a lawyer for each party.
What is the purpose of a Property Settlement Agreement?
The purpose of a property settlement agreement is to settle all matters related to the property, including debts and equity. If you and your spouse own property, you may need to finalise the ownership of the property and the division of assets.
A proposed property settlement after separation in the form of a binding financial agreement is a formal document both parties agree to sign to settle all matters related to the property.
Usually, these financial agreements are made between a divorcing couple or co-owners who have been in a de facto relationship. BFAs are used to resolve issues, such as division of assets, in divorce cases.
How to determine the divorce property settlement
There is no stock-standard way to determine a property settlement because each settlement is different.
Every couple has their own set of unique circumstances, including the value of their property and assets, their roles within the marriage, their financial contributions, and their shared debts and financial obligations. For these reasons, determining divorce property settlement must be done on a case -by- case basis.
One way to determine entitlements in divorce property settlements is to follow case law about any disputes over completed Binding Financial Agreements or family law property disputes in general. This may save you from having to appear in court and is the route that is most likely to result in an outcome that both parties are happy with. When property settlement is taken to court, a judge will consider how to divide the property based on a range of factors stipulated by The Family Law Act.
Factors that are taken into account in divorce Property Settlements:
- The value of the property and any liabilities.
- The length of the relationship.
- Each party’s financial contributions.
- Non-financial contributions such as caring for children, home, and maintenance, etc.
- Future needs of both parties based on their contributions and capabilities.
Divorce Property Settlement mediation
Divorce property settlement FAQ
What is a divorce settlement?
A divorce settlement is a written agreement between the spouses regarding financial issues after the divorce. It may also include property division, alimony, child support, financial support, de facto partners, and other such matters. However, the final divorce statement between the husband and wife must be legally binding.
How are assets divided in a divorce in Australia?
Assets in Australia are generally divided by court order by a joint agreement between you and your spouse or de facto relationship partner.
If a settlement cannot be reached through negotiation, you should seek a mediator to help resolve the division of assets. A mediator will help work out an equitable solution between you and your ex-partner, before you get a lawyer to draw up the agreement.
If these options haven’t worked out, you should seek legal advice to see if you can get your ex to agree to an amicable settlement after a final proposal of settlement, or if you need to go to court. Unless you have a valid prenuptial agreement, a family court must decide how assets should be divided in a divorce.
How long does a financial settlement take?
Typically, financial settlements after separation if settled out of court take anywhere from one to three months. This depends on the nature of the case, the terms and conditions of the settlement, and how quickly the opposing party is willing to settle. If all the parties agree, this can take less than two weeks; however, if the opposing party or your former partner is unwilling to settle, this can take longer.
When a matter is going to family court, it usually takes about two to three years for property settlement after separation.
Are Assets Split 50/50 in a Divorce?
In a divorce, the assets of each party are not necessarily split 50/50 and may be a different percentage based on the decision of the Courts with evidence carefully analyzed. The Court will divide assets based on many factors including the needs of both parties, and what the extent of the asset pool is.
This is why it’s essential to make sure that you know the value of your assets (e.g. cash in bank accounts, cars, investments, houses, and other financial resources), liabilities, income, and expenses. Otherwise, you could end up losing half or more of everything you own just because it wasn’t properly valued or checked.
Can I Handle My Own Divorce?
Yes, you can handle your own divorce, but you should consult with a property settlement lawyer before family dispute resolution to ensure you get the best possible outcome. You should also take your time to figure out what you want to happen and how to do it. Also, you should get the details of your legal rights and what you can expect after the divorce is finalised.
In the event that both parties are unable to set up a Binding Financial Agreement and don’t agree on a fair property settlement, our divorce property settlement lawyers Melbourne can help mediate and negotiate your settlement.
We aim to provide a solution and independent legal advice on property matters that will benefit both parties by properly determining the value of the property. We also take the time to get to know your specific circumstances so that we can tailor a fair settlement that will provide for both party’s needs.
Contact our divorce settlement lawyers in Melbourne if you have any questions regarding divorce property settlements.
If you would like to know more about our family law services, take advantage of our half-hour legal consults. They can be done in person or via Zoom or telephone conference.
If you would like to know more about our family law services take advantage of our half hour legal consults. They can be done in person or via Skype or telephone conference.
Call 03 8742 3199 or enquire via the button below to make a booking.
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