The Importance of Finalising a Divorce and Property Settlement After Separation

Navigating the aftermath of separation is undoubtedly challenging, and one of the most critical steps you can take is to finalise your divorce and legally undertake a property settlement. While it may be tempting to delay these legal processes, especially during emotionally turbulent times, there are significant reasons why addressing them promptly is crucial. This article will explore why getting divorced after separation and undertaking a property settlement is vital for both parties. Moreover, we will answer five common questions to clarify these issues.

Why Finalising Your Divorce is Crucial

• Legal Finality and Emotional Closure:

Finalising your divorce legally ends the marriage, providing both parties a sense of closure. This finality is important for emotional healing and enables people to progress with their lives without lingering uncertainty.

• Legal and Financial Protection:

Until a divorce is finalised, you remain legally married, which can have significant implications for financial and legal matters. For instance, you may still be responsible for jointly held debts or liable for specific actions they take. There can be complications with inheritance, Superannuation, or just a change in circumstances. Finalising the divorce helps protect your financial interests and legal standing.

• Clear Future Planning:

Divorce finality allows for clear future planning. Whether it’s starting a new relationship, making significant financial decisions, or even relocating, having your divorce finalised provides a clear legal standing that simplifies these processes.

The Importance of Property Settlement

• Preventing Future Disputes:

Undertaking a property settlement ensures that all assets and liabilities are divided fairly and legally. Without a formal settlement, disputes can arise in the future, potentially leading to lengthy and costly legal battles.

• Financial Security:

A property settlement provides financial clarity and security. It guarantees that both individuals know their financial situations and can plan accordingly. This is particularly important when considering future investments, retirement plans, and overall financial well-being.

• Legal Recognition:

A formal property settlement is legally binding and recognised by the courts. This legal recognition is crucial for enforcing the settlement terms and protecting both parties’ interests.

• Tax and Superannuation Considerations:

Property settlements can have significant tax and superannuation implications. Finalising these matters legally ensures both parties can optimise their financial outcomes and avoid potential penalties or complications with the Australian Taxation Office (ATO).

Protect Your Rights, Preserve Your Peace

Contact Our Accredited Family Law Specialists.

Book an Appointment with Our Lawyers or call free (1800) 217 217

Frequently Asked Questions

• What is the difference between separation and divorce?

Separation happens when a couple chooses to live separately to end their relationship. This does not legally end the marriage. Divorce, conversely, is the legal termination of a marriage by a court. In Australia, You need to be separated for at least 12 months before you are eligible to apply for a divorce. Still, you can address property settlement immediately – you do not have to wait for 12 months.

• Why is a property settlement necessary if we agree on everything?

Even if both parties agree on dividing assets and liabilities, a formal property settlement is necessary to bind the agreement legally. This protects both parties from future claims and ensures the settlement is enforceable by law. We have had several clients who wished they had completed a property settlement at the time of separation after it came back to bite them later.

• How long do I have to finalise a property settlement after divorce?

In Australia, you have up to 12-months following your divorce to apply to the Court for a property settlement. For de facto relationships, the time limit is two years from the date of separation. It is advisable to address property settlements promptly to avoid complications and ensure financial security.

• Can we still reach a property settlement if we can’t agree?

If you cannot reach an agreement, you can try mediation. You can apply to the Court for a property settlement if this is unsuccessful. The Court will consider several factors, such as the relationship duration, contributions made by both parties and future requirements, to establish an equitable division. Legal advice and assistance can be vital to ensure the agreement is fair and properly documented.

• What assets and liabilities are considered in a property settlement?

A property settlement considers all assets and liabilities, regardless of whose name they are in. This includes real estate, bank accounts, Superannuation, investments, businesses, vehicles, personal belongings, and debts. Considering the parties ‘ unique circumstances, the goal is to ensure a just and equitable distribution.

Protect Your Rights, Preserve Your Peace

Contact Our Accredited Family Law Specialists.

Book an Appointment with Our Lawyers or call free (1800) 217 217

Conclusion

Finalising your divorce and undertaking a property settlement are crucial steps in the separation process. They provide legal and financial protection, prevent future disputes, and clarify future planning. You can move forward with confidence and peace of mind by addressing these matters promptly.

If you have any questions or need assistance with your divorce or property settlement, our experienced team at Aylward Game Solicitors in Brisbane and on the Gold Coast are here to help. We understand the complexities of family law and are dedicated to offering empathetic and professional advice to secure the optimal outcomes for our clients.

Contact us today to arrange a consultation and initiate the first step towards securing your future.