Divorce or separation can be a whirlwind of emotions and chaos. Amidst all this, documenting your property settlement might seem daunting, but it’s a crucial step to ensure clarity and fairness. At Coastal Lawyers, we believe in making this process as smooth and stress-free as possible. Let’s dive into how to document your property settlement like a pro.
Gather Your Financial Information
Start by collecting all your financial documents. This includes:
- Bank statements
- Credit card statements
- Tax returns
- Payslips
- Superannuation statements
- Loan documents
- Property valuations
Having everything in one place will make the process much easier. Plus, it’s a good excuse to finally tackle that overflowing paperwork drawer.
List Your Assets and Liabilities
Next, make a comprehensive list of all your assets and liabilities. Assets can include:
- Real estate properties
- Cars
- Savings and investments
- Personal belongings (like jewellery and art)
- Superannuation
Liabilities are things like:
- Mortgages
- Personal loans
- Credit card debts
- Any other outstanding debts
Being thorough here is key. Missed items can complicate things later on.
Determine the Value of Your Assets
Now that you have your list, it’s time to put a value on everything. You might need professional appraisals for things like real estate and valuables. For other items, use market value or what they would reasonably sell for.
Consider Your Contributions
Think about what each of you brought into the relationship and what you’ve contributed during the relationship. This isn’t just about money. Contributions can be financial (like income and savings) and non-financial (like homemaking and caring for children).
Plan for the Future Needs
Look at your future needs and those of your ex-partner. This includes things like:
- Earning capacity
- Health
- Age
- Responsibility for children
The goal is to achieve a fair and equitable settlement that considers both parties’ future needs.
Negotiate and Reach an Agreement
Sit down with your ex-partner and negotiate the division of assets and liabilities. It’s best to approach this with a spirit of cooperation and fairness. If things get sticky, a mediator can help facilitate these discussions.
Document the Agreement
Once you’ve reached an agreement, it’s time to put it in writing. This can be done through:
- A Binding Financial Agreement (BFA): This is a private agreement that doesn’t need court approval. It’s legally binding but must be drafted carefully.
- Consent Orders: This involves getting the Family Court to approve your agreement, making it legally enforceable. It’s a bit more formal but provides an extra layer of security.
Seek Legal Advice
Before finalising anything, it’s crucial to seek legal advice. A family lawyer can review your agreement to ensure it’s fair and legally sound. At Coastal Lawyers, we offer Family Law Strategy Sessions to guide you through this process and answer any questions you might have.
Finalise the Settlement
Once your agreement is documented and signed, make sure to:
- Update your will
- Change property titles if needed
- Notify relevant financial institutions
This ensures everything is up to date and legally binding.
Final Thoughts
Documenting your property settlement might seem overwhelming, but taking it step by step can simplify the process. Remember, the goal is to achieve a fair division that respects both parties’ contributions and future needs. And don’t forget, Coastal Lawyers is here to help you every step of the way. We’re not just about legal advice; we’re about supporting you through one of life’s most challenging times.
Written by Coastal Lawyers- Central Coast Family Lawyers
Coastal Lawyers are family lawyers based in Erina, on the Central Coast.
Coastal Lawyers assist family law clients in parenting, property, mediation, dispute resolution, and litigation. We offer the legal advice you expect from a lawyer, along with the emotional support you might not expect.
We are passionate about assisting our clients achieve amicable separations without the need for court intervention through the process of legally assisted mediation.
Our team also frequently appears at the Newcastle Federal Circuit and Family Court of Australia (Newcastle FCFCOA), the Parramatta Federal Circuit and Family Court of Australia (Parramatta FCFCOA), and the Sydney Federal Circuit and Family Court of Australia (Sydney FCFCOA) to represent our clients in more intricate family law matters. This encompasses issues related to family violence, unacceptable risk of harm to children, relocation applications, recovery orders and complex property settlements.
Coastal Lawyers offer a 1 hour Strategy Session for all new family law enquiries at a reduced hourly rate.