The worst thing that can happen to a marriage is divorce. It can be harrowing not only for the couple but also very tormenting if they have a child. In such a case, one property settlement is unavoidable. The property needs to be shared between the husband and the wife. Here we give a comprehensive guide that you may need if you face this kind of situation.
What Is Meant By A Property Settlement?
When the couple decides to share all the financial resources, assets, and liabilities at the time of their separation, the decision is known as ‘property settlement’. It does not need to be carried out in court. They can share property like money, cars, pet animals, jewelry, business interests, and inherited assets.
Property settlements will be applicable for those properties that have been acquired during the marriage, and on occasions, to those that were obtained before and after the wedding. Moreover, they do not need to purchase the assets fundamentally. Purchased properties may be loans, taxes, stamp duty obligations, and debts.
What Are The Steps To File A Property Agreement In Australia?
According to the Australian rules, couples get complete freedom to decide how they can share the property. The Family Law Act 1975 states that after divorce, the couples will have 12 months in their hands to apply for a property settlement.
While you can apply for a court order to the Family Court or the Federal Magistrates Court at any time, the most effective method for this purpose is to divide it by reaching out to your ex-partner for a mutual agreement. The court also requires that the separating couple make enough effort to find an agreement between them before thinking of any court proceedings. You can sort out the settlement either by reaching a mutual agreement with your former partner or by applying for the consent orders in the Family Court to formalize the deal.
But, if all the procedure fails, then seeking a court order is the last option left. In that case, property settlement lawyers need to be hired. Here we discuss four basic steps the court will take to process the property settlement.
- Establishment Of The Net Asset Pool And Asset Valuation: By definition, assets are those that have values in the market. Assets may include real estate, cars, savings, furniture, jewelry, shares, and many other similar things with monetary value. All the assets that the couple had held will be taken into account by the court, no matter whether they were acquired during or before the marriage or after they were separated.
- Contributions Towards The Net Asset Pool: A marriage needs contribution from each of the persons, both financially and non-financially. If a child is born, then both the parents need to take on various responsibilities. After a divorce is made, in the second step of the property agreement, contributions from both the partners are calculated by the court.
- Be it a de facto relationship or a marriage, the calculations are always made against financial contribution and non-financial contribution.
- How much they have contributed to homemaking or parenting is also evaluated using these calculations.
- There may be specific initial contributions like gifts, received money, and inheritances gathered during the de facto relationship or marriage. You should note that these initial contributions will also be taken into account.
- Calculation Of Future Requirements And Adjustments: You may get worried about the future of yourself and also for your partner. But, don’t worry. The court will calculate all the future needs in the third step. They will consider a few parameters here.
- Age: One of the primary parameters that are considered here is age. Obviously, with time you will become older, and at that age, you will undoubtedly need sufficient assets for survival.
- Health: After age, they will consider health. Health conditions directly depend on age, as with time, your health conditions will change and deteriorate.
- Income earning capacity: With age, your income earning capacity will also get affected. The energy you can deliver today may not be possible after some decades from now.
- Children’s needs: If you have children to give support, it will also be a vital factor that the court will consider. Based on the ages of your children, the court will determine the future timeframe during which you have to give support to your kids continuously.
- Circumstances of any new relationship: Lastly, if you are in a new relationship, its events will also matter in the total calculation. Based on the calculations, the court will see the possible demand for any adjustment and make decisions. Before the court procedure, you may discuss these matters with divorce lawyers in Perth.
- The Practical Effect Of The Property Settlement: The fourth and final step involves the practical effect of the proposed property agreement. The court will also make sure that it is achieved equitably. The court demands that both partners have clear obligations to make honest and full disclosure about their respective financial circumstances. Failure to meet all these requirements may lead you to face severe consequences.
Property laws, divorce laws, all kinds of laws are complex, and it may not be possible for you to understand each and every part. So, whether or not you have managed to reach a mutual agreement, you should always look for proper legal advice before you make the final decision about dividing the property. There are many best-quality property settlement lawyers based in Perth, who are always ready to provide help, and in such cases, they will assist you in getting the best possible outcomes.
Where To Look For Divorce Lawyers?
Divorce Lawyers Perth is a consultancy firm whom you can contact for this purpose. You will find some of the best divorce lawyers in Perth to get the correct guidance about all the legal obligations and the court hearings.