In Australia, divorce ends a legal relationship between two spouses, which does not include allocating their assets. The division of assets formerly shared by the pair is a separate process.
This article contains materials to assist individuals going through a divorce in determining how property is split, what happens to joint debts, how to identify assets, the impact on insurance policies, and more.
Following a divorce, a property settlement is an agreement between two parties to distribute including properties. All financial links between these parties must be finalised, whether a marriage or a de-facto relationship.
As every relationship and circumstance is unique, there is no set solution for settling property matters following a divorce.
Here is what may be included under assets:
- the family home
- cash
- bank accounts
- investments
- businesses
- insurance policies
- family trusts
- superannuation
- inheritances
- shares
- jewellery
- vehicles
Negotiating a property settlement and court proceedings
Separated spouses are urged to reach an agreement on property allocations without going to court. Going to court is expensive, time-consuming, and may not result in a favourable ruling.
Before making an application for a property settlement, family law courts expect applicants to make a sincere attempt to resolve their dispute.
You can go to Family Dispute Resolution or another mediation programme, or you can hire a lawyer to assist you in addressing your issue. Even if you want to distribute your assets without going to court, you must get legal counsel.
How much does each party receive?
In every property dispute, the parties must first identify the assets, liabilities, and superannuation interests that make up the property pool.
Whether an asset, obligation, or superannuation interest is held in one party’s name, joint names, or jointly with a third party, everything is included in the pool at this initial phase.
As both parties must offer all information to one another, financial papers are frequently exchanged early in the process, allowing each participant to comprehend the situation in a transparently.
The next stage is to evaluate each party’s contributions to the net property pool and the couple’s contribution throughout the partnership.
The contribution of each party is calculated in terms of percentage. Only after that, each party’s existing and prospective financial conditions are examined.
Adjustments to the previously calculated percentage can then be made. Finally, the Court will take time to consider whether the percentage or division obtained is appropriate for both parties.
Role of Lawyers in Property Settlement in Divorce
The circumstances of each divorce is entirely unique to those individuals. An expert family lawyer can assist in assessing your situation, offering valuable advice on where you are in your property settlement, assisting you in negotiating the settlement, and eventually documenting the arrangement into legally enforceable court orders.
Case studies and statistics are valuable, but there is no alternative for individualised legal counsel that considers the following factors:
- Marriage and de facto relationship length
- The present asset pool’s value, as well as the significant assets inside it
- Parties’ current earnings and/or earning capacities
- Care arrangements for children
- The assets brought to the partnership by parties
What documents and information do I need to give your attorney?
As a general rule, the more details you can supply about your financial position to your lawyer, the easier the process will become for you.
The following details are included:
- Papers related to banks and mortgages
- Rent receipts and paychecks
- Bills and proof of household expenditures
- Returns on taxation
- Statements from credit cards and loan statements
- Profit and loss statements for businesses
- Statements of superannuation
- Benefits statements from Centrelink
- School fees and activity invoices as examples of evidence of children’s costs
- Statements of dividends and data on any additional investments
Looking for Lawyers in Brisbane?
At Fit Lawyers, the team will be able to determine how to continue once they’ve evaluated all of your documentation.
You can call their Family law property settlement lawyers in Brisbane on 0415 835 733 or email at [email protected] to discuss your circumstances.
