When going through a separation, dividing assets, liabilities, and superannuation can feel overwhelming. However, understanding the four-step process the Family Court follows can help you navigate the property settlement process with confidence. This structured approach ensures a ‘just and equitable’ division of property, making negotiations smoother and more predictable.
Step 1: Identifying and Valuing Assets and Liabilities
The first step in reaching a property settlement agreement is identifying and valuing all assets and liabilities owned by both parties, whether jointly or individually. This includes:
- Real estate (family home, investment properties)
- Bank accounts and investments (shares, savings, term deposits)
- Superannuation funds
- Vehicles (cars, boats, motorcycles)
- Businesses and business interests
- Debts (mortgages, loans, credit cards)
A fair and accurate valuation of these assets and liabilities is crucial to ensure a just division of property.
Step 2: Assessing Contributions
Once the asset pool is identified, the next step is assessing each party’s contributions to the relationship. The Court considers:
- Financial contributions: Income earned, inheritances, and property brought into the relationship.
- Non-financial contributions: Renovations, business management, and financial decision-making.
- Homemaker and parental contributions: Raising children, household management, and caregiving responsibilities.
Both direct and indirect contributions are taken into account to determine each party’s share of the asset pool.
Step 3: Considering Future Needs
The Court also assesses the future financial needs of both parties to ensure a fair outcome. Key factors include:
- Age and health
- Earning capacity and financial resources
- Primary caregiving responsibilities for children
- Disparities in income and financial security
Adjustments may be made to the property division to account for these factors, ensuring long-term financial stability for both parties.
Step 4: Ensuring a Just and Equitable Outcome
The final step is reviewing the proposed property settlement agreement to ensure it is fair, reasonable, and legally binding. Even if both parties reach a private agreement, it is recommended to formalise it through:
- An Application for Consent Orders (approved by the Family Court)
- A Financial Agreement (legally binding but does not require court approval)
Seeking Legal Advice for Your Property Settlement
Every separation is unique, and family law property settlements can be complex. Seeking expert legal advice ensures you understand your legal rights, make informed decisions, and achieve a fair property division.
At Family Focus Legal, our experienced family lawyers are here to guide you through the property settlement process and help you secure the best possible outcome.
Need legal advice? Contact us today for a confidential consultation.
