Property settlement in a divorce or de facto relationship separation refers to the process of dividing up the property and assets that were acquired during the course of the marriage. In Australia, property settlement is governed by the Family Law Act of 1975, which provides a framework for the court to make orders for property settlement.
It is important to note that property settlement can be a complex and emotionally charged process. It is recommended that parties seek legal advice and support from professionals such as lawyers, mediators, and financial advisors to help them navigate the process and reach a fair and equitable outcome.
In family law proceedings, the court adopts a four step process in reaching a decision on what is a just and equitable division of assets on dissolution of a marriage or de facto relationship.
Identifying and valuing assets
The first step in property settlement is to identify and value all of the assets and liabilities of the parties, including real estate, bank accounts, investments, superannuation, and debts.
Contribution assessment
The court will then consider the contributions of each party to the marriage, including financial contributions (such as income, inheritances, and gifts) and non-financial contributions (such as caring for children, maintaining the home, and supporting the other spouse's career).
Future needs
The court will also consider the future needs of each party, including their age, health, income, earning capacity, and care responsibilities.
Just and equitable
The court will aim to make a property settlement that is just and equitable in all the circumstances, based on these factors.
Negotiation and agreement
Parties are encouraged to negotiate and reach an agreement on property settlement before going to court. If an agreement is reached, it can be formalized through a consent order, which is approved by the court.
Just and equitable
The court will aim to make a property settlement that is just and equitable in all the circumstances, based on these factors.
Court orders
If parties cannot agree, the court will make an order for property settlement based on the evidence presented.
Bainbridge Legal Family Lawyers in Blacktown employs barristers and solicitors with expertise in family law cases. Call us today to book your free appointment.
