There is a lot to think about at a time of separation. There may be a lot of anxiety and unease about how your financial position may change.
The assistance of an independent professional such as a Family Dispute Resolution Practitioner can be invaluable to step you through the process, assist you to come up with options and develop an agreement that works for your particular situation.
Common Questions About Property Disputes
1. Is there a time limit for property adjustment?
Yes. There is a time limit.
In the case of a marriage applications for property adjustment must be made within 12 months of your divorce being final.
In the case of a de facto relationship an application for property adjustment must be made within two years of the breakdown of your relationship.
2. Is there a set formula for working out property division?
There is no set formula for working out property division. The outcome is usually tailored to your particular circumstances. The outcome should satisfy the “just and equitable standard”. Nevertheless, there are some general principles on which property division is based.
These principles similarly apply to marriages and de facto relationships.
- The first step is to determine your assets and your liabilities
- Have an idea of the value your assets and liabilities.
- Look at direct contributions such as wages or indirect financial contributions such as inheritances or gifts.
- Look at non-financial contributions such as caring for children, being a home maker and contributions made to the welfare of the family.
- Take into account future requirements such as the effect on future earning capacity, the age and health of each of the parties, the financial and mental capacity of each of the parties for gainful employment, the resources of each of the parties and the length of the marriage.
3. Is Superannuation part of the property pool?
Superannuation is treated as a different type of property. This means that superannuation does not get converted to a cash asset outside of super and is subject to superannuation laws.
There are different types of superannuation funds. You will need to know the type of fund you have and have it valued.
It is recommended to seek legal advice to work out your rights and responsibilities.
The assistance of an accountant can be useful where expert valuations are required.
Remember the agreement that you reach needs to be tailor made for your family and your particular circumstances.
