16/03/2021
How do you work out a fair property settlement?
Property settlement determines how a married or de facto coupleโs assets and liabilities will be distributed after separation.
The usual process to obtaining a property settlement involves the following four steps:
1. Identify the property pool. List all assets and liabilities including houses, cars, shares, bank accounts and superannuation.
2. Consider the contributions of the parties, both financial and non-financial. Contributions towards the family, such as completing the housework and caring for children, are also considered.
3. Consider the future needs of each party. Each personโs age, state of health, earning capacity and their future obligations to care for dependents, are some factors that are considered. This step is to work out whether one person may need more of the property pool than the other, as they have greater future needs.
4. Determine whether the agreement is โjust and equitableโ (i.e. fair). Regardless of whether people reach their own agreement, or whether a Judge is required to make a determination, the above steps are applied.
Even if you can reach an agreement, the agreement should be formalised into Consent Orders to protect your assets in the future.
It is important to note that every case is different and that any person going through a property settlement obtains independent legal advice, specific to their circumstances, even if an agreement has been reached.
If you would like assistance with understanding the systems and processes involved in property settlement, please contact our office today.
