Divorce Property Division In Australia: 5 Essential Tips
Contrary to what many people think, getting a divorce doesn’t automatically sort out who gets what. Divorce legally ends your marriage. However, dividing your assets is a separate and more complex process. Everyone needs to understand the basics before diving into either divorce or property settlement. But before we do that, here’s a question.
How is property settlement different from a divorce?
A divorce is the official end of a marriage, while a property and financial settlement is the fair distribution of shared assets after a couple separates. Let us explain a little more in this regard.
Divorce And Property Settlements: The Differences
A divorce is a legal process where a court officially ends a marriage. In Australia, the Federal Circuit Court, under Part VI of the Family Law Act of 1975, can grant a divorce if certain criteria are met. You can apply for a divorce jointly with your spouse or on your own.
Australian law follows a no-fault principle, meaning the courts don’t consider who’s to blame for the marriage breakdown. The only requirement for a divorce is that the marriage has irreversibly broken down, with no chance of reconciliation.
Getting a divorce is often seen as a simple formality, allowing either party to remarry in the future. The divorce process doesn’t involve financial settlements or parenting arrangements; it solely focuses on ending the marriage legally.
However, a property settlement law works a little differently in this regard.
A property settlement, also known as a financial settlement, is an agreement about how a couple will divide their money, assets, and debts when they separate or get divorced.
This helps both people move on from the financial aspects of their relationship. Couples can work out the settlement on their own or with the help of the Court, making the process less stressful during a challenging time.
Tips For Divorcing Property Settlement
Divorce can be a challenging time for anyone, and dividing property can make it even more complicated. Property settlement is an essential part of the divorce process that determines how assets and debts are divided between the two parties.
It can be an emotional and cumbersome process!
However, you have to go for it for a fair division. It will also help you to take care of your financial conditions for the present and future.
Here, we will try to provide you with some essential tips to help you navigate the process of divorce property settlement in Australia.
Assess Future Needs
When going through a property settlement after divorcing, it’s essential to assess future needs before dividing assets. Factors such as age, health, income, earning capacity, and child care and support should be taken into consideration.
This will ensure that both parties receive a fair share of the shared assets and future financial stability is maintained. Seeking legal advice can help you understand your rights and obligations when dividing assets and make the process less stressful.
Additionally, it’s worth noting that you don’t have to go to court to complete your property settlement case, and there are time limits for commencing property settlement proceedings. It’s important to remember these tips to navigate the divorce property settlement process in Australia.
So, a 50/50 split is not required! It will be unethical if all go for this same share of properties. Here, your approach should not be to make a profit out of your marriage or relationship. If it is ending, end it on a good note while keeping your ethics intact.
You are not in a competition here. When you need it, go for it and claim a fair share based on your requirements.
You don’t have To Go To Court To Complete Your Property Settlement Case
It’s worth noting that you don’t necessarily have to go to court to complete your property settlement case in Australia. Couples can work out the settlement on their own or with the help of a mediator or lawyer.
This can often make the process less stressful and more cost-effective.
However, it’s still important to seek legal advice to ensure that your rights and interests are protected throughout the process.
There Are Time Limits For Commencing Property Settlement Proceedings
Yes, it’s important to note that there are time limits for commencing property settlement proceedings in Australia.
Generally, you have 12 months from the date your divorce becomes final to make a property settlement application.
However, if you were in a de facto relationship, the time limit may vary. Seeking legal advice can help you understand the specific time limits that apply to your situation and ensure that you don’t miss them.
Well, in general, you must apply for it within two years of the breakdown while you were in a de-facto relationship.
Property Settlement After Divorce Includes More Than Just ‘Property’
Property settlement after divorce in Australia includes not only assets but also liabilities, financial resources, and superannuation. It’s important to consider all of these factors when dividing property to ensure a fair and equitable distribution.
Seeking legal advice can help you understand the different types of property and financial resources that need to be considered and ensure that you receive a fair share of the assets.
- Cash and investments;
- Property owned before the marriage/relationship;
- Personal property (cars, furniture, jewelry);
- Gifts and inheritances; and
- Redundancy payouts.
These are the assets that you can rely on to share. Now you know all the things that can come under the settlement. Check the things you need and go for a settlement.
Seek Legal Advice
Seeking legal advice for property settlement during divorce is highly recommended in Australia. It can help you understand your rights and obligations when dividing assets and ensure a fair and equitable distribution.
A lawyer can also provide valuable guidance and support throughout the process, making it less stressful and more manageable.
Additionally, seeking legal advice can help you understand the specific time limits that apply to your situation and ensure that you don’t miss them.
Well, if a legal professional stays beside you, they can help you navigate things better regarding property settlement. With their experience, they will be confident about your needs and work diligently to secure a better settlement.