Marriage and de facto relationships often entail significant financial commitments and investments. When these relationships break down, the division of property and assets can be a complex and daunting process. In such a situation, it is crucial to understand how property settlements work to ensure that all parties receive a fair distribution of assets and wealth.
This article will explore the basics of property settlements for both married and de facto couples, what factors are considered in the settlement process, and how legal professionals can assist parties in achieving an equitable property settlement.
Marriage and de facto relationships are defined by the Family Law Act 1975 (Cth) (the Act), which enables parties to settle property disputes in a variety of ways, such as through negotiation, mediation, or court proceedings. The first step in this process is to determine the nature and value of the assets and liabilities involved, which may include real estate, superannuation, investments, businesses, and personal property.
When dividing property under the Act, the court considers several factors, including the contributions made by each party, such as financial contributions (e.g., income, inheritance) and non-financial contributions (e.g., domestic duties, childcare, maintenance), as well as future needs, such as the age and health of the parties, their income and earning capacity, and any care responsibilities.
An important distinction between married and de facto relationships is that married couples must apply for a divorce before they can seek a property settlement. A divorce application must be filed within 12 months of the date of separation, and parties have 12 months from the granting of a divorce to apply for a property settlement. De facto couples, on the other hand, can apply for a property settlement at any time within two years of separation.
It is worth noting that parties can reach their own agreements about property settlements without going to court. Lawyers can help draft and negotiate these agreements, which are legally binding and enforceable. This approach often saves time, and money and reduces the stress that comes with going to court. In situations where parties cannot agree themselves, mediation can be an effective way to reach an amicable resolution.
Conclusion:
In summary, property settlements can be complex and difficult for both married and de facto couples. It is crucial that individuals seek professional advice to understand their rights and responsibilities under the Act and determine the best approach to property settlement based on their particular situation. Legal professionals can provide expert guidance, whether it is through mediation, negotiation, or court proceedings, to ensure a fair division of assets and secure financial futures for both parties. By understanding the property settlement process, couples can achieve a workable and agreeable settlement that provides them with the necessary provisions to secure their futures.
The information provided in this article is for general informational purposes only and is not intended to constitute legal advice or create an attorney-client relationship. While we strive to keep the information accurate and up-to-date, laws and regulations may change, and the content may not reflect the most current legal standards.