What is Property Settlement?

A property settlement is essential to the legal process in the event of the dissolution of a marriage or de facto partnership since it ensures that the party‚Äôs assets and debts are distributed fairly. Amid the frequently stressful process of separation or divorce, the division of property can be a crucial matter to take into account. To get the greatest outcome for oneself and one’s children, one must have a thorough understanding of divorce property settlement.

The split of property in the event of a divorce, annulment, or end of a de facto relationship is referred to as property settlement. The legal procedures involved in figuring out the right asset division are typically the same whether a couple was married or not. Property specifically refers to any capital assets, such as money and superannuation, as well as your home, car, obligations and debts, and even inheritances. The parties are encouraged by Australian family law to negotiate their property settlement agreements because it is usually a quicker and less tense procedure. The goal of property settlement lawyers is to resolve all outstanding financial matters.

Usually, mediation or alternative dispute resolution (ADR) precedes a property settlement (FDR). If you can come to an understanding, you can choose between entering into a legally enforceable financial agreement, asking a court to ratify the agreement by issuing consent orders or letting the arrangement remain informal. We advise you to get legal counsel before making any decisions, regardless of the course you take and especially if you opt to make the agreement informal.

Property division is typically a difficult process; even though it’s common to presume that everything is shared equally, each case is examined separately. The court will make a judgement after determining the property pool that is based on several variables. This covers present and foreseeable financial requirements as well as the contributions (both monetary and non-monetary) that each party made during the partnership. Understanding the rules of Australian family law can be helpful before calculating the property settlement, and you must receive quality legal counsel at the outset.

Whether a person was married or in a de facto relationship, they are still eligible to ask for a property settlement. If a person was married, they could submit an application for a family law property settlement after getting divorced and up to 12 months later. You can file for a property settlement up to two years after separating if you were de facto married for at least two years or if you had children with your ex-spouse.

If the parties achieve an acceptable agreement, generally through mediation or family dispute resolution, they may apply to the court for consent orders, which are formal written agreements that have the court’s approval. Otherwise, they may strike a legally binding financial agreement (BFA). This is a written document that describes the property partition terms. It may also address topics such as child support and spousal maintenance. The Family Court can enforce both consent orders and BFAs. If one party breaches the agreement, the other party may petition the Family Court for enforcement, according to Australian family law.