Family law is one of the hardest fields of legal practice. That’s because family law cases are often emotionally wrenching. For instance, when couples dissolve their marriages and decide that divorce is the best option for them, one of the things they need to do is arrive at a property settlement. Here’s how properties are split under the law.
No 50-50 Rule
You may think that there’s a 50-50 rule when splitting up assets. But that’s not the case when you talk about family law property settlement in the land of wombats and koalas. If you’re thinking about getting married down under, you’ll need to learn more about asset division. Think of it as preparation. You hope for the best outcome when you marry your partner. But that doesn’t mean you shouldn’t expect the worst. With that mindset, if something happens, you’ll be ready. The first thing to know: there’s no mathematical formula for splitting properties.
At-Home Versus the Breadwinner
One of the first things that become quite clear is that the law identifies the stay-at-home parent and breadwinner. A stay-at-home parent is more likely to worry about the entitlements. That’s because they don’t contribute much to the partnership financially. But when it involves family law property settlement in Australia, that’s not something you should worry about. The court values financial and non-financial contributions to the marriage. That means they place equal importance on what the caregiver brings to the table. The court factors that into the asset division. Property division is decided on a case-by-case basis.
Factors That Matter
The court takes several factors into serious consideration before it decides on the divorce settlement. These factors are divided into two: common assets and common liabilities.
- What are common assets? These assets include cars and boats, family trusts, the family home, investment properties, shares and stocks. It also includes mutual funds and bonds, savings, and personal properties such as collectibles or jewellery. Business interests and household items also fall under this category.
- What are common liabilities? When you think about assets, you may limit your understanding and idea to properties. But that’s not the only assets that can be divided or split between spouses. Common liabilities include personal loans, credit card debt, and business loans. Does your spouse have business loans? What about hire-purchase agreements or home mortgages? You could end up liable for those liabilities.
Why Do Liabilities Matter? One of the reasons it’s essential you and your partner have a divorce settlement is to ensure no lasting ties. That’s because, married or not, the financial obligations between you and your former spouse remain binding. If you don’t want to expose yourself or funds to any financial liabilities, you need that settlement to be in order. It should hold up in court, so in the future, you won’t be at risk of any liability. The last thing you want is to pay for a former spouse’s debts. Talk to a lawyer to learn more about that. With legal help and advice, you can protect yourself financially.
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