When a long-term relationship ends, one of the most challenging actions is deciding how to split the assets the couple has built together. This segregation of assets is known as property settlement, for which one needs to hire the best divorce solicitors Perth. In these tough situations, the couple has a limited time of 12 months, within which they have to resolve their financial matters.
To provide you with an overview of property settlement in Australia, we have crafted this blog so that you can understand the country’s legalities. So join us as we unravel how the court decides on property settlement.
In some cases, before marriage, couples create a contract stating how they will divide their property if they decide to part ways. These agreements are generally referred to as “prenups”. However, most couples decide to split their shares only after they have gone their separate ways. In such cases, they can reach out to lawyers adept in a divorce property settlement in Perth, who will assist them in getting a fair and equitable share of their property.
In this agreement, the former couple privately agrees to split their property without written documentation. In these cases, the couple may agree to remove what they brought into the relationship. In the case of jointly bought property, they may settle for items of equal monetary value.
Sometimes, with the help of lawyers, the former couple agree privately to a written contract, also known as a binding financial agreement. The legal advisors meticulously assess the situation and see that the assets are distributed equally. During such situations, the division of assets is recommended to be recorded in the financial agreement for future reference. This agreement will bind the parties to follow certain rules after separation.
In this, the former couple seeks the help of a lawyer to compile an agreement into a consent order, which they took to the court for approval. The former couple does not have to go to court for such an agreement. The lawyer carries out all the relevant tasks and does what is needed so that both parties get a fair and equitable share of their property.
In this situation, the former couple cannot finalise the settlement as they cannot agree. With the assistance of divorce separation lawyers, they seek redressal in the court so that their properties and liabilities are divided. However, contrary to popular belief, there are no guarantees that the assets will be equally split between the former couple. The judiciary body considers the various circumstances of the case and imposes a judgment accordingly.
In Australia, after the death or divorce of a spouse, the property is not split evenly as it is an equitable distribution country. Thus, it is calculated using a four-step process mentioned in section 79 of the Family Law Act 1975.
In the primary step, the liabilities and financial resources of the former couple are identified and valued. Include anything from cars, savings, jewelry, real estate, etc. The liabilities are also divided between the former couple, including debts, mortgages, loans, etc.
Once the net worth is valued, then the contributions of the former couple are evaluated. This comprised each party’s financial and non-financial contributions when they were in the relationship. The distribution of the assets is made according to the percentage of their contribution to the marriage.
The judiciary body considers several things, such as present income, earning capacity, health, and age, while splitting the property. Apart from this, they also look at child support, new relationships, and the financial circumstances of the former couple. Considering all these factors, the court decides whether adjustments are necessary.
Ultimately, the last step consists of evaluating the practical effect of the property settlement. In most cases, the properties are divided unequally between the spouses, and the financially weaker spouse gets most of the assets.
If you are facing such situations, it can be difficult to handle them all by yourself. To find out your prospective position in your property division, you can contact Divorce Lawyers and seek their expert guidance. With a case-specific approach, they can evaluate your situation and provide the best outcome for your circumstances.
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