When a marriage or de facto relationship ends, one of the most challenging aspects is dividing the shared property and assets. The process, known as a property settlement, is guided by the principles of fairness and equity under Australian law. Shore Lawyers is here to provide the legal support and guidance you need to navigate this critical process.
Understanding Property Settlements in Australia
Property settlement is the legal process of dividing assets and liabilities after a relationship breakdown. It’s not just about dividing physical property but also includes:
- Real estate (homes, investment properties).
- Financial assets (bank accounts, shares, superannuation).
- Personal belongings (cars, furniture).
- Debts and liabilities.
The Legal Framework
The Family Law Act 1975 governs property settlements in Australia. It applies to both married couples and de facto relationships (including same-sex couples). The court considers various factors to ensure a fair division, focusing on each party’s contribution and future needs.
Steps in the Property Settlement Process
- Identify and Value Assets and Liabilities
The first step is to list all shared assets and liabilities, regardless of whose name they’re under. This includes everything from properties and savings to debts and loans. - Assess Contributions
Contributions are categorised into three types:- Financial contributions: Income, savings, investments.
- Non-financial contributions: Homemaking, caregiving, renovations.
- Future needs: Considerations like earning capacity, age, health, and responsibilities for children.
- Evaluate Future Needs
The court assesses each party’s future requirements, taking into account factors such as:- Who will care for the children.
- Each person’s earning potential and financial independence.
- Health and age of both parties.
- Determine a Fair Division
The goal is to reach a division that is “just and equitable.” This does not always mean a 50/50 split; the distribution depends on individual circumstances. - Formalize the Agreement
Once an agreement is reached, it can be formalized through:- A Binding Financial Agreement (BFA).
- Consent Orders, approved by the Family Court.
If no agreement is possible, the court will make a decision on your behalf.
Common Myths About Property Settlements
- Myth 1: Assets are always split 50/50.
Fact: The division depends on contributions and future needs, which may result in an unequal split. - Myth 2: Only physical assets are divided.
Fact: Superannuation, debts, and other financial assets are also considered. - Myth 3: You can delay the settlement indefinitely.
Fact: There are time limits—12 months after divorce for married couples and two years after separation for de facto couples.
How Shore Lawyers Can Help
Navigating a property settlement can be complex and emotionally draining. At Shore Lawyers, we offer:
- Expert Advice: Clear guidance on your rights and obligations.
- Negotiation Support: Help reaching an amicable agreement.
- Court Representation: If litigation becomes necessary.
- Tailored Solutions: A personalised approach to achieve the best outcome for you.
Contact Shore Lawyers Today
If you’re facing a property settlement, Shore Lawyers is here to support you with compassion and expertise. Our team will guide you every step of the way to ensure a fair and equitable outcome.
Contact us today for a confidential consultation and let us help you navigate this challenging process with confidence.
