Divorce or separation is not an easy thing, especially where issues of property division and finances are concerned, and knowing how property settlement works can ease stress and lead to a fair outcome for those involved.
What Is Property Settlement?
The distribution of the assets, financial resources, superannuation, and liabilities between ex-spouses is known as property settlement under the Family Law Act. If you separated since 1 March 2009, you may file for a property settlement under the act.
Settling Property Settlement
Negotiating a fair property settlement is often complicated. Before signing that settlement, an attorney must be consulted. Best case scenario is for both parties to try and reach some sort of agreement, which can then be made into a Consent Order or a Binding Financial Agreement. In the event that an agreement cannot be made, the court will ascertain how the parties should share property.
Is It Possible to Vary Property Settlement Agreement?
Once it is lodged with the court, changes can only be made when both parties agree or in limited cases where the court deems it ‘just and equitable’.
How Property Settlement Is Worked Out
Two definitive processes have been adopted to arrive at fair outcome in the following ways:
- Assets and Liabilities– Identify and Value- All assets and debts are currently assessed, including superannuation.
- Contributions Economics – Evaluate both monetary and non monetary contributions by parties including reference to matters such-as homemaking and childcare.
- Assess Future Needs : Earning capacity, health and care responsibilities, and financial strength will all be taken into account.
Court’s Decision: Based on all facts, the court ensures that the award is just and equitable.
An Example of Property Settlement
Let’s say, for instance, Alex and Jamie had total net assets worth $1,080,000, less liabilities and including superannuation. Since both parties contributed equally towards financing the two households, but Jamie was more of a caregiver in the family, the parties have settled on a split of 55%-45%, which favors Jamie. Each of these assets, savings and superannuation, would thus be divided in such a fashion.
Why Legal Assistance Matters
Cases differ. Only professional legal advice can ensure your safety regarding rights. Lyon Legal & Conveyancing Services offer specialized assistance for the best property settlement possible.
Contact us today for a consultation and secure your future financially post-divorce.
