Some key points about property settlement after divorce
Separation is not easy on either party or on the dependants and other family members. The question of who gets what after the divorce only serves to complicate the issue further, if you are not fully aware of what the law has to say in the matter. The complications can be quite enormous if you jointly hold property of significant value in various locations. The Family Law Act covers these aspects and it can be enforced by local courts, the Family Court of Australia or the Federal Court. Take a quick look at some key points to know about how property settlement after divorce is treated under Australian law.
You can reach an agreement with your partner about property settlement
The best way to go about dividing the property between the two of you is to discuss the issue and come to an agreement between you both. If you are unable to reach agreement, you may need to engage lawyers to arrive at an acceptable division strategy. Once you have finalised the division, this can be put into writing and consent orders can be sought. On receipt of the legal consent, your property division agreement is legally binding on both of you and you can proceed to make the settlement without further complications.
When you cannot agree on a settlement strategy
In such a situation, you will need apply to the relevant court for legal assistance. Typically, the Federal Court or the Family Court handles these applications. The procedure involves a hearing before the judge, following which the court decides how to divide the property. There are four steps in the property settlement process:
- All the assets and liabilities (both cash and non- cash) belonging to either partner are identified and valued. Experts may be called in, if necessary, to ensure that a fair and accurate valuation is made.
- The contribution of either partner in the relationship is measured. It is not restricted to merely cash contributions, but also includes the effort and time of a partner invested in parenting or in taking care of the home. The duration of the relationship, the presence of dependent family members (such as children) and many other factors play a key role in helping the court make a fair assessment of contributions.
- Evaluation of the future needs of either partner is the third step and many aspects are factored in here as well, such as the age of both partners, the earnings and earning potential, standard of living, and the person who is more qualified to care for a child from the relationship.
- The final and critical step is an objective look at whether the proposed property division is fair and just to both parties involved.
Icon Legal can assist you further advice or assistance in relation to the division of property or any other family law matter.