When going through the break-up in life, whether as a result of separation or divorce, division of property is a tricky and often emotionally involving procedure. As a married person or de facto couple, the settlement of your property is a crucial step that spells financial freedom and closure on the relationship.
In this step-by-step procedure, we are going to simplify the procedure of attaining a property settlement in Australia, and we will familiarize you with your rights and obligations, and also when you should consult a Property Settlement Lawyers Perth.
What is Property Settlement?
Property settlement is the legal act of allocating matrimonial properties, debt and financial capacities between the two separated couples. This comprises of real estates, superannuation, savings, debts, businesses and even personal possessions.
Depending on the circumstances and particulars of asset pool, settlements may be negotiated, arrived at through mediation or in a court.
Step 1: Understand Your Legal Entitlements
Before you can learn how to build a home and stay, it is important to first understand that you have a legal right towards a place to live.
It is advisable to get acquainted with how the law can be applied to your challenge before you go into the negotiations. The family law Act 1975 in Australia has provided property settlement that is not always even at 50/50. The courts consider:
– Individual input of the parties (in terms of money and otherwise)
– Future demands of every individual (income, health, child taking care, and so on)
– The general justice (right and fair decision)
Incidentally, the earlier you obtain legal advice, the easier it is to make informed decisions, even under circumstances of upcoming amicable agreement.
Step 2: Appreciate and Identify Asset Pool
Both the parties should disclose all their assets, liabilities, which should include:
Real estate
Accounts in banks and investments
Superannuation
Practices or trusts
Cars and fish and chips
Loans (mortgages, loans, credit cards)
Proper valuations are necessary; that is why complex assets such as businesses or overseas assets should be valued with precision.
Note: Non-disclosure or inadequate, i.e. lacking in the whole and frank disclosure may delay the procedure and may attract fines.
Step 3: Bargain an Agreement
After establishing the asset pool, the sides can start the negotiations on reasonable distribution. This is possible:
In the very middle of the parties
Through lawyers
Through the intervention of family dispute resolution practitioner (mediation)
The motive is to persuade a decision between the two parties that they can mutually agree on without the tension and financial implication of going to court.
Step 4: Memorize the Agreement
An unwritten or informal contract is not a binding contract. In order to safeguard both and in order to make the agreement legally formalized we need to:
Consent Orders (in the Family Court)
Binding Financial Agreement (BFA) (was prepared by lawyers, giving both people independent legal advice)
Such types of documents make an agreement legally binding and offer finality whereby no party is in a position to come back to the settlement in future.
Step 5: The Overhaul of the Settlement
Once the agreement has been agreed upon:
Transfer of the titles of property may be necessary
Superannuation divide-ups set up
Loans and bank accounts were adjusted
Claims of stamp duty exemptions (of most property transfers in family law)
The administrative aspect can be handled by a solicitor to make the process smooth and in accordance to the required regulations.
To Go to Court
In case of failure of the negotiations, you might have to petition to Federal Circuit and Family Court of Australia to obtain a property settlement order. The court will utilize the whole evidence and then rule on the aspect of what is right and fair.
Time Limits:
Married couples: within twelve months of divorce
De facto couples: separation = 2 years in the past
Final Thoughts
A property settlement is one of the most important money choices that you will make after separating. Though it can turn out daunting, a bright and ordered way, when supported by a lawyer, will make you achieve just and stable result.
