After separation or divorce, you and your former spouse will, at some stage, need to finalise your financial affairs. Often, many couples will accumulate assets and liabilities during the relationship or marriage that need to be divided.
The Family Law Act 1975 sets out a number of things that need to be considered when dividing property. The considerations are the same for married and de facto couples. Not all relationships are the same, and that is why it is important to receive expert family law advice before closing the door on your relationship or marriage.
There are many benefits to achieving a formal property settlement. Here are our top three -
Reduce the risk of your former spouse having another bite of the cherry.
Many separating couples decide to divide their assets and liabilities without the intervention of lawyers or a binding agreement. Whilst not having to engage a family lawyer to draft a binding agreement after separation may initially appear like a good option, there is a risk that years down the track, your former spouse may change their mind and ask for more from the property pool. It is important to remember that the Court will consider the value of the property pool at the time of the hearing rather than the value of what the parties had at the date of separation. By finalising your property settlement early after separation, you move on to your next chapter with peace of mind that the division of your assets and liabilities has been completed.
Exemption from paying stamp duty
If separating couples' own real estate that needs to be transferred to either spouse after separation due to a property settlement, the person receiving the property may be entitled to an exemption from paying stamp duty on the transfer. You will need to have a Binding Financial Agreement, or Consent Order completed to benefit from this exemption. The stamp duty payable on a transfer can be more than your legal fees. Having a legally binding agreement or Order could save you thousands in stamp duty costs.
You can split your superannuation
Some separating couples may prefer to split their superannuation interest rather than paying or receiving a cash sum. If a superannuation split is agreed to, this can be made possible by having a Binding Financial Agreement, or Consent Order completed.
‘The final take’
Many separating couples are hesitant to engage a family lawyer after separation due to the fear of rising legal costs or the interference of an amicable separation.
At Grace Family and Collaborative Law, we work with separating couples to remain amicable and move forward with protection.
We are experts in keeping your matter out of Court and saving you thousands by offering fixed fee solutions and respectful resolutions.
If you have separated or thinking about separation, we invite you to contact us today for a no-obligation FREE 15-minute clarity call with an expert Collaborative Family Lawyer to see how we can help you start your new chapter.