All You Need to Know About Property Settlement
Property settlement is one of the most contentious issues during divorce and separation. More often than not, each party feels that they deserve more than their spouse. Read the extract below for some property settlement tips.
Determine How to Manage Joint Property After Separation
Contact your spouse and decide how you intend to manage property before initiating property settlement proceedings. For instance, who will pay the mortgage? How will you manage joint businesses? You could opt to work on a 50/50 basis to ensure neither party feels overburdened.
Work With an Experienced Property Settlement Lawyer
Working with an experienced lawyer can significantly improve the chances of a positive outcome. The most important aspect of property settlement is identifying joint property. These are assets and businesses acquired by the couple during their marriage. Liabilities such as loans are also taken into account.
Your lawyer will also contact your spouse and initiate property settlement proceedings. In Australia, you are required to settle through a negotiation or mediation process. If these processes are not fruitful, the parties can resort to a court process.
Previous Agreements Do Matter
Prenuptial and postnuptial agreements can determine how you will divide property once you separate or divorce. However, parties can choose to annul the contract if they feel it is unfair to both parties or if their financial condition has significantly changed. A spouse can also ask the family court to nullify the contract if they were coerced into signing or if they did not receive independent legal advice.
Consider an Out-of-Court Process
An out-of-court process will allow you to settle your affairs privately. There are various considerations to make during property settlement. For instance, consider the following:
- Direct financial contributions. How much did each party contribute when purchasing the property?
- Indirect financial contributions, such as taking care of the kids and protecting the family's welfare.
- Non-financial contributions, such as managing the joint property.
- Future needs of each spouse. For example, who will raise the kids? Will the divorce or separation affect your living standards? Do you have any health complications?
Once you agree on how to divide the property, your lawyers will draw consent orders and file them at the family court. If you do not agree, a family court judge will determine how you will divide the property. Do not attempt to transfer property or make large purchases without your partner's consent. If you do, the court could hold you in contempt.
Property settlement can be a daunting process. Divorcing or separating couples should work with experienced lawyers and consider out of court settlements to ease and speed up the process.
For more information, contact a property settlement lawyer.