One of the most stressful parts of separating is trying to decide who gets what. How exactly do you divide assets when you’ve been with someone for such a long time, and how do you make sure it’s done fairly?
When dividing assets with your former partner, you have two main options. You can either reach an agreement on your own terms, which can then be formalised through a Consent Order or a Binding Financial Agreement. Alternatively, if you’re unable to reach an agreement, you may need to commence court proceedings to seek financial orders, which can cover property division and spousal maintenance payments.
What to consider when dividing assets
- Financial contributions: When considering financial contributions, it’s important to look beyond just salaries. This also includes other forms of financial input such as gifts, inheritances, and investments, which can all contribute to the overall financial image of the relationship.
- Superannuation: Superannuation is an increasingly important asset in the property pool for separated Australian couples. Unlike other assets, superannuation can only be divided through a court order or a binding financial agreement between both parties. Since it is held in trust, it is valued and divided differently, so it’s helpful to get legal advice from a family lawyer to help navigate the specific rules and processes involved.
- Real estate: The family home is typically the most valuable asset a couple owns, and decisions about who keeps it are usually based on who has the greater financial need, especially if children are involved. Additionally, other real estate assets like investment properties and holiday homes are also considered during the division.
- Business: If either partner owns a business, it is considered a significant asset because it generates income. The value of the business will be assessed as part of the overall asset division.
- Personal assets: Personal assets, including items like furniture, art, jewellery, and clothing, are usually divided through negotiation or mediation. If the parties cannot agree, a judge may be asked to make a final decision on how these items should be divided.
Why a family lawyer can help to divide assets when separating
Dividing assets during a separation can be a daunting and complex process, especially when trying to manage it all on your own, which can lead to significant complications and disagreements. It can also prolong the entire process which is something you want to avoid. A family lawyer brings valuable experience to the table, handling a wide range of asset structures such as family businesses, trusts, companies, partnerships, joint ventures, property developments, self-managed superannuation funds, and share portfolios. They assist in accurately valuing your assets, considering not just the contributions made during the relationship, but also superannuation, real estate, and personal belongings. Additionally, they help assess the future needs of both parties, an essential component in achieving a fair division. Ultimately, your family lawyer will guide you through the negotiation process to reach a settlement that resolves the division of assets effectively.
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.
.jpg)
.jpg)
