Separating or getting a divorce is never easy. In addition to the emotional impact, there are complicated financial aspects to be addressed equitably. The question that couples ask each other most is how property will be distributed after the relationship.
Houses and savings are not the only factors that determine property ownership in Australia. It addresses anything of value, which includes real estate, cars, investments, businesses, superannuation and even debts. Learning about the division of these assets can assist the couple in making a rational decision and reach an equitable result.
The Legal Framework for Property Division
Property division is a legal principle in Australia that applies to both married and de facto couples, as outlined in the Family Law Act 1975. It is not a matter of equality but fairness. It does not imply that property is divided in half. Instead, the court will consider the financial and non-financial contributions of each individual, as well as their future needs, and then determine a just allocation.
Couples may agree either by a private or mediated process. But when they fail to reach an agreement, it can be resolved in the Family Court or the Federal Circuit Court.
Identifying and Valuing the Property Pool
The initial step is to identify the pool of properties. This involves all common and individual assets, liabilities, and financial resources. Both parties should disclose all financial information. Transparency ensures that we consider all relevant assets when determining a fair settlement.
Once all items have been listed, each item is valued. Some valuations, such as those of real estate, are conducted by professionals, whereas bank balances, superannuation, and investments are estimated using statements and reports. Proper division depends on appropriate valuation.
Assessing Contributions
The next step is to determine the contributions of each side. Savings, mortgage payments, and income are financial contributions. Non-financial tasks like housekeeping, childcare, and property maintenance are also important. Courts understand that child-rearing or career improvement of one’s partner adds significant value to the relationship, and it does not necessarily bring wealth. This brings about equality between the two parties.
Considering Future Needs
The court also considers the future needs of individual persons. Age, health, earning capacity, and taking care of children are a few factors that affect property division. Someone with a lower income or who has primary caregiving duties may be given a higher quota to check their economic stability after the separation. At this point, the services of an expert, such as https://www.velocitylegal.com.au/family-law/divorce-lawyers, can assist a couple in learning about their rights and discussing settlement options depending on the case.
Reaching an Agreement or Court Order
Couples can legalise their agreement by making Consent Orders or a Binding Financial Agreement after taking all factors into account. Such papers render the settlement legally binding and secure both sides against future conflicts. In a case where no consensus is arrived at, the court shall give the ultimate ruling on the basis of the evidence provided.
The division of property in divorce or separation is to be done in a transparent, just and well-calculated way. Understanding your legal rights and responsibilities will minimise conflict and will facilitate easier negotiations. Early consultation with a professional can help couples to secure their interests, make a wise decision and build on it towards financial independence.
