Being in relations of any kind is most often related to having common property and liabilities towards each other. After the breakdown in the relationship, property settlement appears on the agenda. Ensuring smooth and out-of-court settlement, where possible, is an issue Testart Family Lawyers help the parties reach.
The public nature of some divorces makes people think this is a painful and complicated process. However, in reality, only 5-10% of cases go to court – the other 90-95% are settled between the parties privately. Hiring a property settlement lawyer in Melbourne will make you more aware of its peculiarities, helping you to make the transition from the marriage smoother. In this article, we will reveal some important details on the matter.
What Is a Property Settlement?
Property settlement covers the split of the poverty and liabilities that were formerly joint for the parties to the settlement. Let us list some of the most common examples:
- Assets:
- houses
- cars
- business interests
- real estate
- shares and stocks
- deposits
- trusts
- money
- jewelry
- animals
- other assets
- Liabilities:
- debts
- loans
- tax
- child support
- spousal maintenance
- other liabilities
Formal But Important Aspect
It doesn’t matter for property settlement whether a specific property was acquired in the name of one of the spouses or jointly. Both property types will be added to the so-called “net asset pool” during the property settlement. Whether a unit of property was owned by the party to divorce or jointly with the third parties, each property of such kind will be considered during the property settlement as well.
Preparation for the Property Settlement
Even if each case is individual, there are common steps to note:
- Shortlisting all property and liabilities
The primary point is to identify the couple’s interests, whether individual or with third parties, in all types of assets, as well as their liabilities. Having a “net asset pool” is essential for the subsequent property division.
Another important point at this stage is determining the fair value of each shortlisted asset. If there is no official estimation and spouses fail to reach an agreement, an independent expert can assess the value of any asset.
- Determining contributions
Acquiring any property requires making contributions, both monetary and non-monetary. Let us bring more details.
Financial contributions can be made by each party or on behalf of each party at the start of the relationship or further. For instance, one party could buy a house or apartment at the beginning of the relationship while the other one could buy all of the kinds of stuff for this house, such as furniture and various household items.
Gifts of one party to another should be taken into account during the property settlement. Inherited items should also be added to the pool for the property settlement unless they were inherited by a spouse personally.
Non-financial contributions should also be considered. If one part of the settlement was busy because of one’s role as a parent or homemaker but didn’t have any income, one’s contribution to the family is deemed equal.
- Ascertaining ongoing needs
Not all mutual liabilities cease to exist after divorce and property settlement. It is also necessary to consider the personal circumstances and ongoing needs of each party. Many factors have an impact:
- age and the state of health of each party
- income of each party
- child custody
- future earning capacities, including employment prospects, of each party.
Consent Order vs Financial Agreement
Most couples settle their relations without going to court by executing a consent order. This is a legally binding document where the parties agree on a way of property settlement and outline mutual obligations towards each other. To make this document effective it should be approved in a court.
A financial agreement is another way to settle the divorce, regulating one or several aspects, most often these:
- all or part of the property owned by the spouses
- maintenance
- property and maintenance
What Will Be Next with Your Joint Property?
There are several ways how the parties can dispose of their property:
- Sell property with the subsequent split of the proceeds between the parties.
- Property interests may be transferred from one party to another, with or without monetary compensation.
- One party can retain the property.
- Liabilities may be retained, divided, or repaid by one party.
How Professional Lawyers Can Help You?
Ensuring fair and equitable property settlement requires precise and effective legal navigation. The experienced Testart Family Lawyers are ready to apply their best knowledge and expertise in property settlement to safeguard your financial interests during this sensitive process.
Our professionals apply a wide scope of procedures to property settlement – healthy negotiations, mediation, and dispute resolution, avoiding bringing the case to a court, unless this is the last resort. We ensure balanced solutions, bringing clarity and peace to the relations between the parties.
