What is Property Settlement?
There is a common misconception that property should be divided on a 50/50 basis following separation, however this is often not the case. In many situations, a party can receive more than half, sometimes significantly more depending on their individual circumstance.
It is important that you obtain independent legal advice regarding your entitlements before you reach any agreement that divides your assets, liabilities and financial resources. Our legal team at Jordan & Fowler understand the nature and complexities of property settlements, and can help you when formalising legally binding agreements, when navigating negotiation settlements or when you need representation in court proceedings.
Frequently Asked Questions
Do I have to be divorced to split the property?
As soon as you have separated you can make arrangements to split your property and debts between you and your ex partner, you do not have to wait until you are divorced.
Do we have to go to court?
No, not at all. If you have already agreed on how things should be divided between you, your lawyer can draw up the document which will finalise the arrangements, and then get underway the legal processes which will split the assets.
What if we can't agree?
There is an established process in cases where there is disagreement over how property should be split. Firstly the court needs to be satisfied that you have attempted to reach agreement, and to this end you will be ordered to participate in dispute resolution.
If this doesn’t resolve the matter then an application for property orders must be filed with the Family Court or Federal Magistrates Court. This application must be made within 12 months of your divorce becoming final.
The matter will be set down for hearing and a legally binding decision will be made by the court.
How does the court decide?
Firstly the court will calculate the total assets owned by both parties, including property, shares, cars, jewellery, savings, furniture etc. This includes things you brought into the relationship, those acquired during the relationship and also those purchased after separation.
Next the court will weigh up the contributions from both parties, including financial, non-financial, inheritances and assets brought into the relationship.
Then the court will look at the future needs of both parties, including factors such as your capacity to earn money and your parental responsibilities.
Lastly the court will make a decision based on what is just and equitable to both parties.