Going through a separation or divorce can be overwhelming, especially when it comes to dividing property and assets. You may wonder, “What am I entitled to in a property settlement?” Understanding the principles that guide property division can help clarify the process and set realistic expectations.
How Is Property Divided in Family Law?
The landmark case of Stanford v Stanford [2012] HCA 52 established key principles for dividing property between separating spouses in Australia. According to the High Court, the following steps are taken to determine how assets are divided:
Step 1: Identifying the Property Pool
This involves listing all assets, liabilities, and financial resources owned by both parties. It includes properties, investments, savings, superannuation, debts, and any business interests.
Step 2: Assessing Contributions
Both financial and non-financial contributions are considered, including:
- Direct financial contributions, like income and property purchases.
- Indirect contributions, such as homemaking and raising children.
- Contributions to maintaining and improving assets.
Step 3: Evaluating Future Needs
The court considers factors like:
- Age and health of each party.
- Income, earning capacity, and financial resources.
- Future parenting responsibilities.
Step 4: Ensuring Justice and Equity
Ultimately, the goal is to reach a fair and just outcome for both parties. The specific circumstances of each case are taken into account, and there is no “one-size-fits-all” solution.
Can We Agree on the Property Division Without Court?
Yes! If you and your former partner can agree on dividing your property, you can formalise your agreement through either of these options:
- Consent Orders
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- A legally binding agreement approved by the court.
- Requires filing forms, paying a fee, and court approval.
- Offers legal protection and enforceability.
- Binding Financial Agreement (BFA)
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- A private agreement between you and your ex-partner.
- Must be signed by both parties after receiving independent legal advice.
- Not subject to court approval but must meet legal requirements to be enforceable.
Which Option Is Right for You?
Deciding between Consent Orders and a Binding Financial Agreement depends on your unique situation. Seeking professional legal advice can help you understand your options and protect your rights.
If you’re uncertain about your entitlements or need guidance, contact our experienced family law team to schedule a complimentary consultation. We’re here to support you through this challenging time.
To book an appointment, you can:
- Call us on 07 5576 9999
- Book an appointment online by clicking here
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