You’ve probably heard about property settlements in the talks of your separation and divorce and that it’s risky to delay it… But why is it so important you run on a timely schedule? And how can you do that in the heat of emotions? And sorting out the children? That’s why we are here to help and give some tips on making a property settlement work out in the best possible way.
What are the risks of putting off a property settlement?
Value of the property pool
The number one reason you want a property settlement is to protect yourself. Divorce is what legally terminates the marriage between spouses. But that’s not what fully and financially separates you. You still need to consider arrangements for children and of course, a property settlement. A property settlement is what divides all your assets and debts between you and your spouse. Property settlements consider all of your assets from the date of the settlement not when you separate or divorce. This means that if you buy any new property or your spouse incurs any new debts, those things can be included in the property pool to be divided. If you wait too long, you might have to account for more than you were thinking, so it is best to get in as soon as you can.
Value of the housing market
The value of property is assessed at the date of the property settlement. So, with a fluctuating market, housing prices can drop, or as they are in Australia right now, skyrocketing. With an unpredictable market, some property may not be affordable anymore. In order to have a little more foresight for your financial advisers and lawyers, you can’t delay your settlement.
Time limits
There are time constraints for when you can divide your property. You only have 12 months from the date of your divorce for your property settlement. If you are a de facto couple, the limit is 2 years from the date of separation. There will be extra costs to make claims after the time frames because you will need to seek the Court’s permission.
This sounds daunting – what if you don’t want to go to court?
Maybe you’re putting off your settlement with all the stress and the intimidating nature of Court. Despite how the movies make it look, you have other options. Court property settlements are chosen for high conflict divorces. You may come to a contractual agreement, called a Binding Financial Agreement, that outlines your settlement through a negotiation with your spouse and their lawyers. If that still seems confrontational, a mediation might suit you better. This is where you will have a third-party impartial mediator to facilitate your settlement. Want to know more about the risks of delaying your settlement and how it affects your will and other arrangements?
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You’re going through with a property settlement – Now what?
We know that property settlements aren’t always the smoothest of processes, delays can also occur throughout it. We’re not only talking about putting off your property settlement, but also that it runs timely and smoothly. Delays throughout your settlement can mean added unnecessary costs and more stress. Make sure you communicate everything to your lawyer. Give them any knowledge regarding your divorce and finances, no matter how insignificant it may seem. The more information we have the more help and advice we give! You also need to handle any documents as requested by your lawyers and bank on time to keep the property settlement moving along. And finally – pick the right lawyers! We are here to guide you through every step and even beyond your settlement. Check out
Divorce Hub Gold Coast to strategize your divorce, be that through mediation or the Court.
