Before making any hasty judgements, you should be aware of specific important facts regarding property division and divorce.
Because your finances and possessions will need to be shared as part of the divorce settlement, ending a relationship can be a difficult time. Legally divorcing someone and dividing their assets are viewed as different processes with their own deadlines.
What you should know about property settlements when you separate is provided here.
A Property Settlement: What Is It?
The legal division of all assets following a divorce or the dissolution of a de facto relationship is known as a property settlement.
In addition to being a very emotional procedure for both sides, it can also become very complicated and occasionally contentious.
Are Separation Divorce and Property Settlements Handled Differently?
Absolutely. Property settlement is the agreement established between the two parties (or Orders imposed by the Court), establishing the terms of the split of their property after their partnership has ended. Divorce implies a couple is legally separated and free to remarry.
At any point in the partnership, a property settlement can be negotiated without ever filing for divorce.
Before your divorce is officially granted, property settlements might also be completed.
Is the start of the property settlement process subject to a deadline?
Married couples have one year from the date of the divorce’s finalisation to request a Consent Order from the court.
De facto couples must submit an application within 24 months of the separation date.
To resolve their property settlements as soon as possible, however, is strongly encouraged for all divorced or separating couples.
What Is Real Estate?
All assets and obligations that belong to both parties, regardless of who is registered to use them, are referred to as property. The family home or any other property, businesses, money, investments, shares, insurance policies, movable assets like cars and jewellery, as well as bequests, trusts, and superannuation, could all fall under this category. Debt encompasses any personal debt, including credit card debt and mortgage loans.
How to Negotiate a Property Settlement Following a Divorce
The most challenging component of divorces is typically this. Things can be so much easier and much less expensive if you’ve already created a Binding Financial Agreement before or during your marriage or partnership.
It’s not the end of the world if there is no BFA because both parties can still negotiate a settlement with the aid of a local divorce lawyer or through mediation.
Australian Family Law offers certain principles, seeking to reach a result that is fair and equitable to both parties and satisfies the specific needs of each family, even if there are no particular hard and fast rules as to who gets what. Fair and fair treatment does not always entail a 50/50 distribution of the available resources.
Both parties are urged to reach a consensus on as many points as they can, whether they are negotiating through lawyers or mediation, as this will make the process go more smoothly and result in a settlement that is agreeable and livable for both sides.
Does a Property Settlement Have a Legal Effect?
A property settlement can be reached in one of three ways.
The first choice is an “informal agreement,” which can be reached by the parties themselves without the assistance of lawyers or mediators. Although it may appear to be the least expensive choice, the Court will not uphold it. This means that even while you may appear to be divorcing on amicable terms, you may still find yourself in court in the future if your ex decides to break any of the provisions of the agreement. You can ask for a Consent Order or create a Binding Financial Agreement to make sure that never happens.
A family lawyer or mediator can assist in negotiating and drafting a Consent Order, which can then be filed to the Court for approval. This is likely the least risky and expensive method of coming to a court-enforceable property settlement that gives both parties financial security.
Although a Binding Financial Agreement is similarly enforceable by the Court, it may take longer and cost more money than obtaining a Consent Order through mediation because each party must acquire legal counsel from their own lawyers.
Using Mediation To Resolve Property Conflicts
No matter how amicable the divorce may seem, trying to come to a property settlement can undoubtedly be a very stressful process. Couples must evaluate all of their assets and liabilities in addition to dealing with even more complex issues including figuring out superannuation values. The whole process may be quite stressful for the entire family as you try to decide who stays at home, who goes where, who watches the kids, and who pays for what.
Therefore, it makes sense for both parties to get expert assistance and at the very least be aware of their legal rights. The fastest, safest, least stressful, and most expensive alternative for both parties is to negotiate a property settlement through mediation following your divorce.
Without ever taking sides or pressuring people to accept any terms they do not feel comfortable with, mediators can provide both parties with assistance. They stay unbiased, concentrating only on helping both sides come to an agreeable agreement that satisfies the requirements of the entire family.
Knowing that family law mediation is used to resolve the great majority of divorce cases in Australia may be consoling.