
Separation is not an easy process, and determining how to make a Settlement After Separation can be one of the toughest parts.
A common question that pops into the minds of most individuals at this time is: “Can I formalise property settlements while staying legally married in Australia?” Yes, you can. You do not have to get divorced to formalise such agreements. This blog post will explain how that works and what options there are for separating couples.
it is a distribution of assets and liabilities from a marriage or de facto relationship after separation. It includes:
No, this is not mandatory to reach this agreement. You may commence and conclude the division of assets and liabilities at any time following separation, notwithstanding whether or not you have remained married.
Most commentators recommend you resolve your property matters as soon as possible to avoid any difficulties that may subsequently arise by delaying the settlement process. This allows both parties to achieve financial clarity and independence, even if they choose not to pursue a divorce immediately.
You can formalize a property settlement without going through with the divorce process in either of the two following ways:
The most common and generally the preferred order. You and your ex-partner agree on how your assets and liabilities will be split, and you then apply for orders that record and give effect to your agreement. Lodging orders with the court results in registration – so it is a registration process.
Advantages: Consent orders are usually faster and cheaper than litigating in court. They also give you and your ex control over the outcome.
Process: You will have to lodge an Application for Consent Orders with a Minute of Consent, which is a document that details how you and your ex agree to divide your assets and liabilities. Seek help from the best property settlement lawyers to receive valuable input during this time.
It is a legally binding contract between you and your ex-spouse regarding how the property owned is to be shared in case you are going to separate. It may be entered into:
Advantages: BFAs provide clarity and can thus prevent costly and time-consuming court proceedings. Furthermore, they can be drafted for case-specific cases.
Requirements: BFAs must meet very stringent legal requirements to be valid. Both parties should seek independent legal advice before signing the agreement.
Time Limits: You need not be divorced to formalise property matters. There are, however, time limits by which you may apply to court for property orders. When married, you must apply to the court within 12 months of your divorce being finalised. If de facto, you must apply within two years of the date of separation.
Legal Advice: You should generally get independent advice from commercial property law firms regarding any property settlement agreement you might enter into, be it consent orders or a BFA. A professional will advise you of your rights and entitlements and ensure that the agreement is free of flaws in the law.
Separation date: A defined timeline for separation should be established because that date would play a crucial role in the distribution of assets.
Finalising the property, even when not divorcing, will help you with several benefits:
Finalising a property settlement is an essential step after separation that must be done immediately. Given the legal intricacies involved in property settlements, seeking professional guidance from Property settlement lawyers is highly recommended. So, consult with a professional today for assistance and reach a proper solution.