At Lawyers by the Bay in Mornington, VIC, we specialise in helping clients navigate the complexities of property settlements. Our experienced family law team is dedicated to providing clear, practical advice and support, ensuring fair outcomes during these challenging times. Whether you're dealing with asset division or financial disputes, we're here to guide you through every step of the property settlement process.
Understanding Property Settlement
Property settlement involves dividing assets and liabilities between parties following a separation or divorce. It includes not only physical property like homes and cars but also financial assets such as bank accounts, superannuation, and debts. The goal is to reach a fair and equitable distribution of these assets based on various factors, including each party's financial and non-financial contributions, future needs, and any other relevant circumstances.
Financial Agreement
Financial Agreements, also known as Binding Financial Agreements (BFAs), are legally binding contracts that outline how assets and liabilities will be divided in the event of a separation or divorce. These agreements can be made before, during, or after a relationship and provide a clear plan for property settlement. They are often referred to as prenuptial agreements.
If you choose to make a financial agreement, you need to make sure you understand its terms. Before signing any agreement, each party must receive independent legal and financial advice. If formal requirements have not been met, the agreement will be invalid, and the Court may set it aside.
Consent Orders
Consent Orders are court-approved agreements that detail how assets and liabilities will be divided. Once approved by the Court, these orders are legally enforceable and provide certainty for both parties. Consent Orders are typically used when parties have reached an agreement on property settlement but need formal court approval to make it legally binding. Our team at Lawyers by the Bay can help you prepare and submit Consent Orders to ensure your agreement is recognised and enforceable.
The Legal Stuff – What is a Property Settlement and How to Get It Done
A property settlement is an arrangement made between parties to divide assets, liabilities and financial resources when a couple separates. A property settlement can be made with or without the Court's assistance.
Property can include almost anything of value, such as:
- Property owned jointly or independently
- Superannuation
- Business interests
- Trust interests
- Jewellery
- Cars
- Assets acquired through inheritance
- Money
- Animals
A property settlement is not limited to property acquired during the relationship. Property owned prior to and after the separation can be included in a property settlement. Liabilities will also be divided between the parties, whether they are held jointly or individually, such as:
- Debts
- Loans
- Tax
- Stamp duty obligations
Court Ordered Property Settlement
If the two parties cannot reach an agreement outside of Court, they can apply to have a court make an order on their behalf. A court will only make an order if it is fair and reasonable to alter the parties' property interests.
The Court follows the following five-step process to determine how property is to be split between the parties:
- Identify the existing legal and equitable interests of each party to the property;
- Determine whether it is equitable and just in the circumstances to make a property settlement order by reference to those established interests;
- Determine the direct and indirect financial and non-financial contributions (such as salary, care of children and homemaking) made by or on behalf of each of the parties as a percentage-based entitlement;
- Consider whether a further amendment to the percentage-based entitlement should be made, taking into account the future needs of the parties (such as care of children, health, financial resources, ability to earn) and
- Consider whether the result reached is a just and equitable result in all the circumstances.
Lawyers by the Bay can assist with all aspects of asset division. Reach out to us at 03 8680 2549 to get expert advice and support.