Quick tips – a guide to property settlement
16
January 2023
If you and your spouse have decided to separate, one of the biggest issues to sort out is who gets what. This is known as a property settlement and it’s preferable if it occurs sooner than later.
Here’s our “quick tips” guide to helping you through property settlement after separating from your spouse:
- Get specialist Family Law advice: everyone’s situation is different and the application of the law is an ‘inexact science’, so it is important that you have an understanding of the ‘range’ of entitlement you might have.
- De facto couples (including same sex couples) can have a property settlement under the Family Law Act.
- The method of determination for a property settlement broadly requires a calculation of the total ‘pool’ of property and then a consideration of all relevant ‘contributions’ by the parties in determining a ‘percentage’ entitlement. It is no ‘dollar in, dollar out’.
- A low-income spouse may be able to get financial support from a higher income earning spouse (this is called ‘spouse maintenance’).
- All property in existence at the time of a hearing or when an agreement is reached must be considered, whether it’s individually or jointly held, and whether it was acquired before or during the relationship, or after you separated. “Property” includes assets, liabilities, superannuation entitlements, and other financial resources.
- Non-financial contributions, such as child raising and homemaking, are counted as contributions to the relationship.
- If you and your ex-partner are thinking about selling your home, it’s a good idea to get an appraisal by a real estate agent, or even several real estate agent appraisals. We suggest you receive Family Law advice before you obtain a valuation.
- If you are the one moving out, make sure you take all your personal financial documents with you.
- Be honest. Don’t try and hide bank accounts or offload any property before you have reached an agreement with your ex. If a dispute does arise, this behaviour will be scrutinised. Both spouses are required to provide full and frank disclosure.
- A matrimonial property settlement must be finalised within 12 months from the date of a Divorce Order, and a De-facto property settlement must be finalised two years from the date of separation
- To ensure that it is binding, an agreement for the division of property must be correctly documented as either a consent order or a financial agreement
- Read our article ‘Quick Tips – practical tips to surviving separation’.
Need help? Michael Lynch Family Lawyers are here to help you during this time. If you need advice on property settlements, division of assets, or any other aspect of family law, contact our office on: (07) 3221 4300 or email: [email protected]
