If you’re considering a DIY divorce financial settlement agreement, it’s essential to understand your legal rights, responsibilities, and the process involved in dividing assets after a separation. Whether you’re separating from a marriage or a de facto relationship, finalising your financial matters is a crucial step toward moving forward independently and securely.
What Is a DIY Divorce Financial Settlement?
A DIY divorce financial settlement refers to an agreement reached between separating partners without extensive involvement from family lawyers or court intervention. It includes the division of assets, liabilities, superannuation, and financial support. This type of arrangement is often chosen by couples who have reached an agreement amicably and are looking to reduce legal costs and court appearances.
Even though it’s called a “DIY” process, it’s still highly recommended to seek legal advice before finalising the agreement. This ensures your settlement is legally sound and fair.
Can You Get a Financial Settlement Without Divorce?
Yes, you can get a financial settlement without divorce. In Australia, financial settlements can occur before or after applying for a divorce. In fact, many couples choose to settle their financial matters soon after separation, even if they delay or never proceed with a formal divorce order. For de facto relationships, the financial settlement process is also available and governed under the same principles, provided the relationship meets certain legal criteria.
Understanding the Financial Settlement Divorce Process
The financial settlement divorce process involves identifying all assets and debts, valuing those assets, and deciding how they will be divided. Here’s a general outline of the process:
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Identify and value the property pool: This includes homes, vehicles, savings, investments, superannuation, and debts.
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Consider contributions: Both financial and non-financial contributions by each party are assessed.
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Evaluate future needs: This includes considerations such as age, income, health, care of children, and capacity to earn.
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Determine a just and equitable division: This is based on what is fair for both parties.
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Document the agreement legally: Often through an application for consent orders or a binding financial agreement.
Even in DIY arrangements, it’s crucial to document the settlement legally to avoid future disputes.
Do It Yourself Divorce Settlement: Steps to Follow
A do it yourself divorce settlement can work smoothly if both parties are cooperative and transparent. Here are the key steps:
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Negotiate the terms: Agree on how to divide the assets and responsibilities.
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Put the agreement in writing: Include details on property, superannuation, debts, and any child support or financial support obligations.
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Apply to the Court if necessary: For formalisation, couples may submit an application for consent orders to the Federal Circuit and Family Court of Australia.
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Follow up on court orders: If the Court approves the settlement, it becomes legally binding and enforceable.
DIY Financial Separation: Risks and Benefits
DIY financial separation can save time and money, especially if the asset pool is simple and both parties agree on the division. However, it comes with risks if:
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One party fails to disclose all assets
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The agreement is not documented or formalised properly
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There is an imbalance in bargaining power
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Children and ongoing financial support needs are not considered
To safeguard your interests, always obtain legal advice, even if you’re planning to self-manage most of the process.
Time Limits for Property Settlements
There are time limits to be aware of when finalising your property settlement:
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For married couples, applications to the court must be made within 12 months of a divorce order.
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For de facto relationships, applications must be made within 2 years of separation.
Missing these time frames could result in losing your right to make a claim, unless special permission is granted by the court.
How to Make a Financial Claim After Divorce
If no agreement is reached or if one party refuses to negotiate, you may need to apply to the court to resolve financial disputes. To make a financial claim after divorce, you’ll need to provide:
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A full disclosure of your financial situation
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Evidence of contributions and future needs
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A completed application to the circuit and family court
Legal assistance from family lawyers may be essential in these cases to ensure your entitlements are fairly assessed.
Where to Get Help
For support during the process, you can contact services like the Family Relationship Advice Line, which offers information on separating, parenting arrangements, and family law. For legal clarity and peace of mind, consulting with a solicitor specialising in family law is always a wise step.
Conclusion
A DIY divorce financial settlement agreement can be a practical option for couples who have separated amicably and can negotiate respectfully. However, it’s important to understand the legal framework, be aware of the time limits, and ensure the agreement is documented properly. By doing so, you protect yourself from future disputes and help create a smoother transition for everyone involved.
If you’re unsure of the next steps or need help formalising your settlement, don’t hesitate to seek legal advice—it’s the best way to secure a fair and legally binding outcome.
