How Are Assets Split During A Divorce?

Going through a divorce is already complicated and emotionally draining for any individual. However, most separated couples need to go through the same process when it comes to division of assets, as rarely do both parties have the same perspective on how it should be done. Unlike common belief, keeping everything in your name and splitting joint assets is not how property settlement is done. In order to protect any disadvantaged party involved, division of asset is rarely a clear-cut 50/50 split down the middle.

Who gets what?

The short answer is that it depends on the circumstances of the parties involved. Past direct and indirect contributions towards the relationship will be assessed, along with the identification of all current assets and liabilities of both parties. These include, but are not limited to cash, real estate, investments, insurance policies, superannuation, cars, furniture, mortgages, loans, and debts. After understanding current and future financial circumstances of both people, a final percentage of each person’s contribution is calculated, and the court assesses the fairness of the numbers. A financial agreement can be drafted to legalise the splitting of assets, and the general principles also apply to de facto relationships.

While informal agreements made without lawyers can also get the job done, they can be highly unreliable and unenforceable by the court if your former partner decides to apply for another property settlement in future.

Do I need to go to court?

We believe that amicable agreements on property splits is always the preferred scenario, but that is not always the case. When separated couples are unable to agree on how to split property outside of court, even after mediation and negotiation by each party’s lawyers, that is when the case needs to be escalated to Family Law Court. Official documents and court representation need to be arranged, and while it may sound complicated and confusing, engaging a lawyer will help simplify the process for you.

Just because you do not have your name on the asset does not mean you are not entitled to your share of the property when you leave the relationship. Every separation scenario is unique and requires tailored advice from an experienced family lawyer. Terry Johnson Legal has handled many divorce and property settlements between former couples and can represent your interests to achieve the best possible outcome for you. Simplify the process with a sympathetic and professional lawyer by calling (02) 6262 9376 to make an appointment today. Alternatively, send your enquiries via email and let Terry Johnson Legal help you get through this stressful process more easily.

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