Tying up financial matters is a key part of divorce proceedings or when a de facto relationship has ended. It can sometimes be one of the most unpleasant factors of a divorce. If you live in Sydney or the surrounding suburbs, and are currently facing this issue, family lawyers in Sydney will be able to help you through this process and help it be as painless as possible.
Make sure you are looking for family lawyers in Sydney, rather than too far away from where you work or reside. Any unforeseen events or new information that may arise may mean that you will need to have an urgent meeting. To make the process hassle-free, going with a local family lawyer will help lessen any stress.
Here are key areas of advice a family lawyer can help you with and resolve your property settlement issues.
What falls under the umbrella of a property settlement
Property settlements are more than just the home. It can involve the split or transfer of investment properties, commercial properties, savings, and vehicles.
Your legal representation should be able to tell you what you are entitled to and what the process might be for any property assets you currently own. Typical outcomes can include the property be sold and any profits divided between each person. Another outcome could be that one person gets to keep the property and the other person is provided monetary compensation for their half.
How a property settlement is formalised
Your lawyer will explain to you how your property settlement agreement can be legally agreed upon. Two key ways in which a property settlement can be legally recorded is through a consent order or a biding financial agreement.
A consent order is an order that is made by the court and demonstrates that both people involved in the proceedings agree to a particular contract. A binding financial agreement is one that is drafted up by each party.
In either option, the way a property settlement is legally recorded will vary and each have its own pros and cons. Each divorce or relationship breakdown scenario will be different. Your lawyer will be able to help advise which agreement is best suited to your situation.
The importance to legally bind your property settlement
Even if a split is amicable, it is still important to ensure that your property settlement is legally sound. Even thought things can seem ok now, the nature of a split is that sometimes attitudes and priorities change. Protect yourself from any added cost and stress in the future by ensuring your agreement is legally recorded.
Your legal professional will be able to explain to you in detail about the other reasons why it’s important to legally bind your property settlement including its enforceability or your protection from any future property settlement claims.
The importance of settling property straight after the separation
There are many amicable separations and this can lead to the two parties leaving property settlement issues for a later date. Many people see this as a tension fuelled discussion, so if two people are on good terms with each other they may be reluctant to “rock the boat”.
However, if a property settlement is delayed, it leaves both parties open to claims being made against each other in the future. For example, you might purchase a new property post your divorce or separation. This newly acquired property may still be classified as part of the property you both share, and therefore, your former partner could be entitled to their part of it if they decide to make a claim.
Also, if your former partner sells any assets before a legal agreement is made then the property and assets shared is then reduced. So, when you do eventually decide to make an agreement, you will then get less than what you would have if you did it straight after your separation.
As a rule of thumb, it’s always best to get advice from a family lawyer regarding any property settlement concerns you might have. They can tell you what assets are dealt with under a property settlement, how it is formalised and legalised, and why it’s important to do it sooner rather than later.