Property Settlement After Divorce

Statistics show that in Australia at least one-third of relationships end in divorce or separation. Usually, we don’t find accurate information about property settlement after divorce or separation.

Different cases have different results. All cases are decided according to the given facts, and the result of each case is different.

Misconceptions about property settlement:

Each case of a property settlement after divorce has different results. We hear different wrong statements from our clients. Let’s have a look at the wrong divorce property settlement examples in Australia.

• Everything is divided equally: People think that the property is divided equally among both parties. The truth is that there is no such rule. Also, there is no mathematical formula for dividing property. It is decided according to the given facts.
• To get a property settlement you will have to go to court: This myth is also not true. There are only 5% of couples who have to visit the court. All other cases are resolved through mediation, or by a solicitor-to-solicitor negotiation. After they agree about dividing their assets, they write an application for consent orders and the court just approves the application. They don’t even have to go to court.

Can I apply for a property settlement if I was in a de facto relationship?

Recently there were no such rules for de facto relations.

But now Family Court and the Federal Court can make financial decisions for couples who were in a relationship.

How property is divided?

After divorcing in Australia property settlement is decided easily. But sometimes, you may have to visit the court. So, you must be prepared for it. Let’s know about the basic rules about divorce property settlement. The court does not have a formula for dividing the property. No one knows about the exact results of the case. The judicial officer will decide according to the given facts of your case.

The family law act 1975 has declared the general principles which are followed by the court while deciding financial disputes after the divorce, also there are rules for property settlement after the ending of a de facto relationship. See sections 79(4) http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fla1975114/s79.html

And 75(4) http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fla1975114/s75.html

To know about property settlements after divorce. If you were in a de facto relationship then you may look at 90SM(4) http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fla1975114/s90sm.html

And 90SF(3) http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/fla1975114/s90sf.html

The basic rules are the same whether you were in a marriage or a de facto relationship.

• Working on the properties that you owe.
• What was the contribution of each party to the marriage or de facto relationship? For instance their salary.
• The court will also consider gifts and inheritances from each party or their families.
• The court would like to know about the non-financial contribution of each party, for example caring for children or homemaking.
• The court will look at future possibilities according to one’s health, financial status, custody of children, and whether he or she can have the ability to earn.

The division of assets will depend on your financial status. You may get more or less according to your condition.

What is the time limit for the application of property settlement?

Property settlement after divorce has a time limit. In case of a divorce you should for this application within 1 year of the divorce becoming final. If you were in a de facto relationship, it expands to two years after the breakdown of the relationship.

If you were not able to apply in the given you will have to get special permission from the court to apply this application.

Is it good to have a property settlement?

If your financial condition is not good then you should go for property settlement. But, the court has the authority to decide about property settlement. If the court finds that it is suitable to divide property then the court will not allow it.

It is all based on the given facts and circumstances. If the court decides not to allow property settlement then both parties will leave with the properties under their name and possession.

Explain the property pool:

In the property pool, all the assets and liabilities of both parties are included, it also includes assets in joint names. It can include a house, a townhouse, or a block of land. It can also be a business vehicle, motor vehicle, camper, boat, bank account, or shares, and nowadays bitcoin is also included. In liabilities loans like mortgage, personal loan, and business loan is added, also credit card, debt Australia is included in liabilities.

What about property sold after separation or divorce?

If a party sells one or more of its properties after divorce or separation, these properties are added back to the property pool. It is good to negotiate with the other person before taking such a step. The same procedure should apply if you purchase a new property.

How will financial agreements help?

These agreements are just like contracts. In these agreements, parties decide how they want to divide the property. The couples in a marriage or de facto relationship candy go for financial agreement. You can make these agreements before, during, or after your marriage.

If you are thinking of making such agreements then you should understand the terms and conditions of the agreement. Before signing the agreement you should receive legal advice. This agreement can save a lot of time. The property settlement after divorce gets easier if you have such an agreement.

How can Mackay family lawyers help?

At Mackay family lawyers we have the most experienced lawyers for divorce property settlement. We can deal with all kinds of property issues. We have made many satisfied clients. We can help you get your truth right.

A few more questions:

Here are some commonly asked questions about property settlement after divorce.

How divorce property settlement is decided?

The easy solution to this problem is that you should decide how to divide property by discussion. But most couples don’t agree with this solution so you will have to go to court. In court, the judge will decide according to the stats provided by both parties. The decision changes according to one’s financial status.

How can I apply for divorce property settlement after the deadline?

You will have to tell the court about the cause of the delay. You must show them that your life or the life of the child will get harder if the court does not allow you to proceed.

What is meant by Binding Financial Agreement?

The Family Law Act allows couples in a marriage or in a de facto relationship to agree to property settlement if their relationship breaks down. This agreement is called the Binding Financial Agreement. In this agreement, the court is not involved in any kind of property matters. The court is involved if this agreement is terminated by the parties.

Article Source: Property Settlement 

Divorce Asset Split In Australia: Who Gets What In A Property Settlement?

It is essential for you to decide about property settlement if you are thinking to end your relationship. It is good to know how assets split in Australia works. Our article will inform you about the process and rules for property settlement in Australia. Also, you will find tips for getting better results. We also have some examples that can explain to you the working process of the divorce settlement. 

You cannot predict the exact outcome of your process, but you can take some steps to get the necessary help. 

• Get in contact with the best real estate agents in your town. 
• Get help from experts in a divorce settlement. 

What is a property settlement?

If you are getting a divorce, then property settlement will decide how to divide your assets and liabilities. It contains both shared and individual properties. 

You can solve this issue without the involvement of Lawyers or the Family Court of Australia, by making an agreement with your partner. It is important to make the agreement formalize with the court to make it legally binding. 

The aim of a divorce settlement is to divide assets between couples in a way that they don’t need each other for financial support. This process counts all the properties or financial responsibilities that were involved during the marriage.  

Property settlement after a divorce time limit

It is good to resolve this issue as soon as possible if you are having a divorce or getting separated. This involves all the property purchased during marriage or after separation. After divorce, you have a year to apply for property settlement, and after the breakdown of a de facto relationship, you will have 2 years. If unfortunately, you cannot apply during the time, you can apply to the Family Court of Australia for special permission. 

The property settlement agreement:

It is a legal agreement between divorced or separated individuals. It contains the arrangements for property settlement after divorce or separation. 

There are two approaches for reaching a property settlement agreement:

• Both individuals can decide the matter of property division, and then they will formalize their agreement through the court. 
• You can Family Court of Australia to decide on dividing the assets. 

If you can decide without the help of the court, you will save some bucks and time. But it may not be possible in your situation. You may need a lawyer to get some legal advice and a voice for you in court. 

The divorce law Australia for property settlement is the same all around Australia, it doesn’t matter in which state you live. Also, it is not mandatory to complete the divorce before dividing the assets. You should go to the settlement as soon as possible. 

How much time does the settlement take?

It depends on how you proceed. It will be much faster if you can decide with your former partner. But if it is not possible, then you should go to court. You may have to wait for months or even years to get the result from the court.

Guidelines for dividing assets:

Here is a procedure that you can use in both conditions. 

• List of all assets and liabilities: Provide a list that contains all of your assets with their values. Both parties submit their own files. We know it as a “pool of assets”. The list includes all individual and shared properties. 

• Future financial needs: Make an estimate of the future financial needs of each person, to get a fair guess we include the person’s earning capacity, child support, health, age, and financial resources. 

• Proposed agreement: Create a proposed agreement that shows who gets what.
• Assess: Check if the agreement is fair or not. If you are happy with the agreement, then go to court to formalize it, else apply to the court to have a just decision. 

If the court is going to decide, then it will also follow a similar pattern. The court will see all of your assets and will also consider the future needs of a person. The court will try its best to give a fair and just decision. 

Property Settlement After Divorce

Can I sell the property after divorce?

It is not wise to sell any property before dividing assets. Because everything you own will be a part of the pool of assets. You will need to add it for sorting an agreement for the property. But you can sell it if the other partner agrees. 

Tips for dividing assets:

In a divorce settlement, you wish for better results. Remember the following dos and don’ts  when going through this problem:

The dos:

1. • Keep a record of all assets or debts. 
   • If you want to sell property, inform your informal partner. 
   • You should get legal advice for both selling and settlement of assets. 
   • Try to use alternatives of the court as it saves time and money. You have two options other than the court

 

• Mediation: In mediation a neutral professional guides the process of settlement. If you can make an agreement through mediation, then the court formalizes it. 

• Arbitration: It is just like a court, but it is not formal. If both parties decide an agreement there, they register an arbitral award in the court and become binding for both individuals.

 

The don’ts:

• Do not wait until the divorce is final for property settlement. 
• Do not hide any assets or property.

Property settlement examples:

Johnny and perry had a divorce in Australia, their asset pool was:

• A marital home worth 1,200,000 dollars and its mortgage was $700,000, so the total becomes $2,000,000.
• They also had a car worth 25,000 dollars.
• Perry’s superannuation worth $15,000.
• Johnny’s superannuation worth $25,000.

They can make an agreement or the court can decide that Perry gets 60% and Johnny gets 40%. According to their future requirements and financial resources. This is a 60/40 split divorce. 

Perry can keep the car, and they both keep superannuation. Johnny will keep the house and will pay Perry so she can buy a place. 

Frequently asked questions:

Let’s have a look at the most commonly asked questions for property settlement. 

How to work out divorce settlements?

The first step to take for divorce settlements is to get legal help. It is better to make an agreement by discussing with your former partner as it will save you time and a few bucks. 

Does a wife have more benefits?

The wife can get half of the assets. In the case of child support, she can even get an amount from the income of her husband. 

Source: Divorce Property Settlement