When relationships break down, dividing property can be one of the most challenging aspects of separation. Inheritances often complicate the process further. Under the Family Law Act 1975, inheritances are generally considered part of the property pool available for division, but their treatment depends on the unique circumstances of each case. Here’s what you need to know about how inheritances are handled in family law.
Key Factors in Determining Inheritance Division
1. Timing of the Inheritance
When the inheritance was received plays a significant role:
Before or During the Relationship: If the inheritance was received before or during the marriage or de facto relationship, it’s usually included in the shared property pool.
After Separation: Inheritances received after separation are less likely to be included, although the court may still consider them, especially if the funds impact the financial situation of one party.
2. Use of the Inheritance
How the inheritance was used during the relationship can influence whether it’s considered a joint or individual asset. For example:
If the inheritance was used for shared expenses, such as purchasing a family home, it’s more likely to be treated as a joint asset.
If the inheritance was kept separate and used solely for the benefit of the individual who received it, the court may consider it separate property.
3. Contributions and Needs
The court assesses the contributions of both parties—financial and non-financial—as well as their future needs.
Financial Contributions: This includes the inheritance itself and how it was applied during the relationship.
Non-Financial Contributions: Parenting and homemaking contributions by the other party are also taken into account.
Future Needs: The court considers factors like age, health, earning capacity, and caregiving responsibilities when deciding a fair division.
4. Just and Equitable Division
The court’s primary goal is to achieve a just and equitable outcome, not necessarily an equal split. Each case is assessed individually, and the division may vary depending on factors like the size of the inheritance, its use, and the overall property pool.
5. Keeping Inheritances Separate
If an inheritance has been kept entirely separate from joint assets and was not used for shared purposes, the court may treat it as an individual asset. However, this is not guaranteed, and the overall circumstances will still be considered.
Why Legal Advice is Essential
Inheritance matters can be legally and emotionally complex. Whether you’re concerned about protecting an inheritance or negotiating a property settlement that involves inherited assets, understanding your rights under the Family Law Act is crucial. A family lawyer can provide tailored advice to help you navigate this challenging area and work toward a fair outcome.
Protect Your Inheritance: Get Expert Legal Advice
If you’re navigating a separation involving inherited assets, Coastal Lawyers can guide you through the process and help you protect what’s yours. Contact us today to discuss your case and find out how we can assist.
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.
When separating assets in family law matters, understanding the value of shared property is critical. A property valuation provides an expert assessment of a property’s worth, often required when one party wants to retain the property or when there’s disagreement about its value.
Here’s a comprehensive guide to property valuations in family law, including when and why they’re needed, how they differ from market appraisals, and the steps involved. Your lawyer will provide you with advice with respect to your specific needs.
What is a Property Valuation?
A property valuation is an independent assessment of a property’s value conducted by a jointly appointed single expert, often required under the Family Law Act. Unlike market appraisals or bank valuations, a property valuation is admissible evidence in court, making it a critical tool in resolving disputes over property division.
When Do You Need a Property Valuation?
If One Party Wants to Retain the Property: A valuation ensures both parties have an accurate figure for negotiations or settlements. If the other party is retaining the home it would ordinarily be prudent to have a single valuation so you can be sure that the value agreed reflects a fair market value.
If the Property Will Be Sold: A valuation isn’t always necessary when selling, as the market will determine the final sale price. In such cases, you can avoid the cost and time associated with obtaining a valuation. However, sometimes historical valuations are required for example, where one party brought a piece of real property into a shorter relationship and the ‘contribution’ of that property needs to be assessed. Or where one party has received a property by way of inheritance.
Market Appraisals vs. Bank Valuations vs. Property Valuations
Many clients assume they already have a valuation, but often it’s a market appraisal or a bank valuation, not an official property valuation: Below is an explanation of the differences.
Market Appraisal: Real estate agents provide these to estimate how much they believe a property might sell for. However, they are often inflated to attract sellers and are not considered reliable or admissible in court but can be useful when first commencing negotiations
Bank Valuation: These are typically conservative estimates used by banks for lending purposes. While more accurate than market appraisals, they are not designed for family law disputes.
Property Valuation: Conducted by a qualified valuer, this is the only admissible document in court if there’s a dispute about property value. The reason why such an expert is generally appointed as a single expert is so that each party don’t go to the expense of separate valuations which may then not be in agreement. They generally share the cost of the single valuation.
When Should You Obtain a Property Valuation?
You should initiate the valuation process as soon as discussions begin about one party retaining a property. Acting early avoids delays and ensures accurate figures for negotiations or court proceedings.
Who Pays for the Valuation?
The cost of a property valuation is generally shared equally between the parties. However, if one party cannot afford to contribute upfront to the report, the other party may initially pay the full amount, with an adjustment made during the final settlement to recover the other half.
How to Obtain a Property Valuation
An expert is agreed usually by one party providing a list of 3 and the other selecting one.
A joint joint letter of instruction to the expert is prepared setting out the terms of their engagement and what is required.
The parties pay generally in equal shares.
Access to the property to valued is arranged with clear instructions that the valuer is not to have any private discussions of substance with either parties to ensure their impartiality.
The report is prepared and sent to both parties.
The parties then use this report to settle their balance sheet and progress their property discussions.
Additional Tips
Delays May Require Updates: If there are significant delays in the property settlement process, an updated valuation might be needed to reflect current market conditions.
Need Help with Property Valuations in Family Law?
At Coastal Lawyers, we understand the complexities of dividing property in family law matters. If you’re unsure about the valuation process or need assistance with negotiations or court proceedings, our team is here to guide you every step of the way.y.
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.
Going through a separation is tough enough without the added stress of property ownership issues keeping you up at night. If you’ve purchased a home with your de facto partner or husband—or even multiple properties—but none of them are in your name, you might feel especially vulnerable. The good news? The Family Law Act 1975 provides protection for you.
Understanding Your Rights Under the Family Law Act
Under the Family Law Act 1975, it doesn’t matter whose name is on the property title. The Act has the power to make property adjustments, including orders that property should be transferred to another party. This means that even if your name isn’t on the title, you still have a claim.
Why Urgent Legal Advice is Crucial
If your name isn’t on a piece of property, it’s essential to obtain urgent legal advice. Here’s why:
Prevent Unauthorised Sales: If your name is not on the title, your former partner could list the property for sale without your knowledge.
Secure Your Interests: Legal advice ensures that your interests are protected and that any property dealings are handled fairly.
Reach Interim Agreements: It’s important to reach an interim agreement (or in some cases seek urgent court orders including injunctions) to how (or how not) a property can be used or disposed of until a property settlement is reached and agreed upon.
How Coastal Lawyers Can Help
At Coastal Lawyers, we’ve represented many clients in this position. We understand the complexities of property settlements and can provide you with the guidance you need to navigate this challenging time. Whether it’s preventing unauthorised sales or ensuring a fair property adjustment, our experienced team is here to support you every step of the way.
Take Action Now
Don’t let property worries add to the stress of your separation. Contact Coastal Lawyers today to book a strategy session. We’ll help you understand your rights, explore your options, and chart the best path forward for your particular matter.
DISCLAIMER:
The information contained in this blog is for informational purposes only and does not constitute legal advice. For tailored legal guidance, book an obligation-free appointment with Coastal Lawyers online.
Separation is tough, but you don’t have to face it alone. Coastal Lawyers is here to provide the support and legal expertise you need to secure your future.
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.
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.
