Family Law Property Settlement The Four Most Important Things to Know
What is a Family Law Property Settlement?
Once a relationship or marriage comes to an end, all involved parties must separate their financial ties. In some cases, this involves the transfer of cash. In other cases, real estate passes from hand to hand. For example, if a married couple bought a house together and the deeds are in joint names, they may agree for the property to be sold upon their divorce, with the resulting cash divided between them. Alternatively, they may come to the agreement that one of them gets to keep the house in exchange for a cash payment or some other expensive shared belongings. However, it is extremely important to seek the help and advice of a professional solicitor who specialises in family law throughout this process.
How to formalise the Family Law Property Settlement-
Remember, no matter how amicable the relationship between yourself and your former partner remains, you should still look to formalise any agreements, meaning that they are recorded legally. The two ways to legally record a settlement are via a consent order or a binding financial agreement. A consent order in when both you and your former partner have agreed upon a settlement, which is analysed by a court registrar before approval. On the other hand, a binding financial agreement is one in which both parties have given their approval, but it has not been reviewed by a court. Your solicitor will advise you on the best option.
Why is formalising a Family Law Property Settlement important?
There are multiple reasons as to why this is an important process. Number one, consent orders and binding financial agreements are legally binding. This means that it is illegal for either party to breach the agreed-upon terms. Property settlement also finalises the separated financial relationship between both parties, meaning one cannot make any further claims against the other.
Why should you finalise your Family Law Property Settlement promptly after separation?
It is important to agree upon a settlement promptly in order to avoid any future settlement attempts that may catch you off guard financially. Not only this, but many people believe that courts look at property pools at the date of separation, rather than the date of the settlement agreement/application. However, this is simply not true. The court will look at the property pool in its current state, meaning that any extra profits or assets gained between separation and agreement are available to split. Therefore, you leave yourself open to further losses if you wait. On the other hand, if your former partner loses money or sells an asset between the separation date and agreement, they no longer fall within the property pool. They may be able to do this to their own benefit, but it will reduce your settlement share. The court cannot review assets or money that no longer exists. Having said that, the court can take into account the wastage of assets after the separation date to review any potential foul play. In summary, it is in your best interest to formalise the settlement promptly rather than risking any change to the financial pool.
You can find out more on Family Law Property Valuations here
LINCOLN GANTER AAPI ASA {MTS} CPV
Owner and Director
GANTPMV Pty Ltd – www.gantpmv.com.au
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