It is essential for you to decide about property settlement if you are thinking to end your relationship. It is good to know how assets split in Australia works. Our article will inform you about the process and rules for property settlement in Australia. Also, you will find tips for getting better results. We also have some examples that can explain to you the working process of the divorce settlement.
You cannot predict the exact outcome of your process, but you can take some steps to get the necessary help.
- Get in contact with the best real estate agents in your town.
- Get help from experts in a divorce settlement.
What is a property settlement?
If you are getting a divorce, then property settlement will decide how to divide your assets and liabilities. It contains both shared and individual properties.
You can solve this issue without the involvement of Lawyers or Family Court of Australia, by making an agreement with your partner. It is important to make the agreement formalise with the court to make it legally binding.
The aim of a divorce settlement is to divide assets between couples in a way that they don’t need each other for financial support. This process counts all the properties or financial responsibilities that were involved during the marriage.
Property settlement after divorce time limit
It is good to resolve this issue as soon as possible if you are having a divorce or getting separated. This involves all the property purchased during marriage or after separation. After divorce, you have a year to apply for property settlement, and after the breakdown of a de facto relationship, you will have 2 years. If unfortunately, you cannot apply during the time, you can apply to the Family Court of Australia for special permission.
The property settlement agreement:
It is a legal agreement between divorced or separated individuals. It contains the arrangements for Property Settlement After Divorce or separation.
There are two approaches for reaching a property settlement agreement:
- Both individuals can decide the matter of property division, and then they will formalise their agreement through the court.
- You can Family Court of Australia to decide on dividing the assets.
If you can decide without the help of the court, you will save some bucks and time. But it may not be possible in your situation. You may need a lawyer to get some legal advice and a voice for you in the court.
The divorce law Australia for property settlement is the same all around Australia, it doesn’t matter in which state you live. Also, it is not mandatory to complete the divorce before dividing the assets. You should go to the settlement as soon as possible.
How much time does the settlement take?
It depends on how you proceed. It will be much faster if you can decide with your former partner. But if it is not possible, then you should go to court. You may have to wait for months or even years to get the result from court.
Guidelines for dividing assets:
Here is a procedure which you can use in both conditions.
- List of all assets and liabilities: Provide a list that contains all of your assets with their values. Both parties submit their own files. We know it as a “pool of assets”. The list includes all individual and shared properties.
- Future financial needs: Make an estimate of future financial needs of each person, to get a fair guess we include the person’s earning capacity, child support, health, age and financial resources.
- Proposed agreement: Create a proposed agreement that shows who gets what.
- Assess: Check if the agreement is fair or not. If you are happy with the agreement, then go to court to formalise it, else apply to the court to have a just decision.
If the court is going to decide, then it will also follow a similar pattern. The court will see all of your assets and will also consider the future needs of a person. The court will try its best to give a fair and just decision.
Can I sell the property after divorce?
It is not wise to sell any property before dividing assets. Because everything you own will be a part of the pool of assets. You will need to add it for sorting an agreement for the property. But you can sell it if the other partner agrees.
Tips for dividing assets:
In a divorce settlement, you wish for better results. Remember the following dos and don’ts when going through this problem:
The dos:
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- Keep a record of all assets or debts.
- If you want to sell property, inform your informal partner.
- You should get legal advice for both selling and settlement of assets.
- Try to use alternatives of the court as it saves time and money. You have two options other than the court
- Mediation: In mediation a neutral professional guides the process of settlement. If you can make an agreement through mediation, then the court formalises it.
- Arbitration: It is just like a court, but it is not formal. If both parties decide an agreement there, they register an arbitral award in the court and becomes binding for both individuals.
The don’ts:
- Do not wait until the divorce is final for property settlement.
- Do not hide any assets or property.
Property settlement examples:
Johnny and perry had a divorce in Australia, their asset pool was:
- A marital home worth 1,200,000 dollars and its mortgage was $700,000, so the total becomes $2,000,000.
- They also had a car of worth 25,000 dollars.
- Perry’s superannuation worth $15,000.
- Johnny’s superannuation worth $25,000.
They can make an agreement or the court can decide that Perry gets 60% and Johnny gets 40%. According to their future requirements and financial resources. This is a 60/40 split divorce.
Perry can keep the car, and they both keep superannuation. Johnny will keep the house and will pay Perry so she can buy a place.
Frequently asked questions:
Let’s have a look at most commonly asked questions for property settlement.
How to work out divorce settlements?
The first step to take for divorce settlements is to get legal help. It is better to make an agreement by discussing with your former partner as it will save you time and a few bucks.
Does a wife have more benefits?
The wife can get half of the assets. In the case of child support, she can even get an amount from the income of her husband.
Source: https://familylaw.aylwardgame.com.au/divorce-asset-split-in-australia-who-gets-what-in-a-property-settlement/
