What is the process of a property settlement?
A property settlement is an agreement between both parties on how the property will be divided; this includes all the assets and liabilities. Bank accounts, superannuation, investments, loans and mortgages as well as any other assets and liabilities are included.
There are four steps involved in the property settlement process.
The first step is determining the combined property pool; this includes each party’s assets and the liabilities. Here the value of each asset is to be determined. This is followed by looking at the contributions that each party has made and the future needs of each party. The fourth step is determining whether the proposed property settlement is just and equitable.
How is property divided?
Property is not always divided on a 50/50 basis. There are various factors that the Court will take into consideration. Before the combined property pool is divided, the Court will look at the contributions made by each party. This includes financial contributions, parenting, and homemaker contributions together with non-financial contributions. The Court will then look at the future needs of the parties. This includes the care of children (and other dependants), income-earning ability and the health of each party. All these factors will play a part in determining how the property will be divided.
The assets and liabilities will be divided depending on the circumstances of your case. The Court will look at the proposed division of the property pool to ensure a just and equitable split of the property.
How can I record my property settlement?
There are two ways for a property settlement to be recorded and considered binding: Consent Orders or a Binding Financial Agreement.
A Consent Order is obtained by filing a jointly signed Application for Consent Orders and Minutes of Consent in the Family Court of Australia.
A Binding Financial Agreement is an agreement on property matters that is drafted by a legal practitioner and certified by two independent Australian practitioners.
It is highly recommended that you seek legal advice before signing any documents.
If you require assistance with your property settlement contact Grace Family + Collaborative Law on 1300 414 855 to speak with an experienced Family Law Solicitor.