Separation is never easy, and even when it’s amicable it can still be overwhelming. There are a lot of decisions to be made, with one of the biggest being the process of dividing property, also known as Property Settlement.
A property settlement is the legal process that determines how assets and liabilities, such as the family home, bank accounts, superannuation, vehicles, shares, businesses, and personal items, will be divided between separating parties. It also includes the division of debts like mortgages, credit cards, and loans, ensuring all financial aspects are considered in the agreement.
Navigating a property settlement can be complex, but being aware of common mistakes can save you time, money, and stress. At Eliza Legal, we understand the importance of handling your property settlement with care, and we’re here to guide you through the process with compassion and expertise.
Below are the top five mistakes to avoid when going through a property settlement to ensure a fair and smooth outcome.
Top 5 mistakes in property settlement
- Failing to disclose all assets and liabilities
In Australia, both parties must fully disclose all assets and debts during the property settlement process. This includes both tangible assets, like real estate and vehicles, and intangible assets, such as investments, bank accounts, and superannuation. Concealing or omitting any of these can lead to serious legal consequences and delays. To avoid this, consult with a family lawyer to ensure you meet your legal obligations and achieve a fair outcome.
- Not knowing the value of your assets
Understanding the full value of your property, assets, and debts is crucial in achieving a fair property settlement. Disputes can arise when the value of an asset, such as a home, business, or shares, is unclear or contested by either party. To avoid these issues, it’s important to gather detailed financial documentation and, when necessary, obtain independent valuations for significant assets. Courts often rely on these professional appraisals to assess the division of property. Knowing the exact value of what you own not only protects your interests but also streamlines the settlement process.
- Agreeing to an unfair settlement
Property settlements must be “just and equitable,” meaning they should be fair to both parties. However, it’s easy to feel pressured into agreeing to something that isn’t in your best interest, especially in emotionally charged situations. If you feel your voice isn’t being heard, consider using mediation, where an impartial third party can help facilitate a fair agreement. Remember, it's important to engage a committed family lawyer who will advocate for you to ensure you get the best possible outcome.
- Letting emotions drive your decisions
Property settlements often occur during highly emotional times, and letting anger, sadness, or frustration drive your decisions can be harmful. Rash decisions made in the heat of the moment often don’t lead to favourable outcomes in the long run. Take the time to separate your emotions from the legal process, and focus on making clear-headed, informed choices. This can help both parties reach a more reasonable and beneficial resolution.
- Not seeking professional help
Relying on advice from family and friends is common, but it’s not always wise when dealing with legal matters. While their support may be comforting, a family lawyer is essential to ensuring your property settlement is fair, legally binding, and handled properly. A professional can guide you through the complex legal system, provide sound advice during negotiations, and ensure that your interests are protected every step of the way.
Advice and guidance through property settlement
Dividing assets between separating couples can be tricky, particularly when complex financial structures are in place. At Eliza Legal, we can provide you with advice regarding your property settlement. Eliza Legal is a leading family law firm based on the Mornington Peninsula, dedicated to providing tailored legal services with compassion and integrity. Contact us today and let’s see if we’re a good fit! We’d love to help you.
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