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Property settlement involves dividing the assets and liabilities accumulated during the relationship. This process ensures that each party receives a fair share of the property and debts, considering the contributions and future needs of each party.
Key Steps in Property Settlement
- Identification of Assets and Liabilities: Both parties must disclose all assets, liabilities, and financial resources. This includes real estate, bank accounts, superannuation, investments, and personal property.
- Valuation: Assets such as real estate, businesses, and vehicles are often valued to determine their current worth. This ensures that the division is based on accurate and fair assessments.
- Assessment of Contributions: Contributions include financial (e.g., income, investments) and non-financial (e.g., homemaking, parenting) contributions made by each party during the relationship.
- Consideration of Future Needs: The future needs of each party are considered, including factors such as age, health, income, and care of children. This helps ensure that the settlement addresses any disparities in future earning capacity or financial needs.
- Negotiation and Agreement: The parties can negotiate a settlement agreement through direct discussions, mediation, or legal representatives. The aim is to reach an agreement that reflects a fair distribution based on contributions and future needs.
- Formalising the Settlement: Once an agreement is reached, it must be formalised. This can be done through a consent order (if agreed upon by both parties) or by obtaining a court order if the parties cannot agree.
Consent Orders
- Definition: Consent orders are legally binding agreements approved by the Family Court of Australia. They formalise the property settlement agreed upon by the parties.
- Application Process: The parties submit a draft consent order to the court along with an application. The court reviews the proposal to ensure it is just and equitable before issuing a formal order.
- Benefits: Consent orders are less formal than a court trial, quicker to obtain, and offer a private resolution to property disputes.