The issue of dividing property can be emotionally-charged and prone to argument between the parties. There are a number of options available to a separated couple when trying to reach agreement about their property settlement:
Face to face negotiations between the couple
Negotiation via lawyers
Mediation, either with or without lawyers present
Each option has positive and negative aspects so it’s important to get proper advice along the way.
The asset pool, contributions and relevant future issues must be identified and assessed before any action in relation to property settlement can be taken.
The Australian family law system works on the following four-step process:
Step 1 – Identify the Property Pool
This includes values for all of the assets, liabilities and financial resources of the parties.
Step 2 – Assess the Parties’ Respective Contributions
Contributions to the property pool – at the start of the relationship and after separation. Those contributions include both financial and non-financial ones.
Step 3 – Consider Future Needs
Consider the ‘future needs’ factors of each person, such as the future income earning capacity of each and their responsibilities for the care of children.
Step 4 – Is It Fair and Just
Determine whether the outcome is fair and just to both parties.
Get legal advice because knowledge is power.