Over the last few weeks we’ve been eploring a common separation and property settlement myth – the 50/50 split.
Many people believe that the property pool must be divided in a 50/50 split regardless of any personal circumstances. This just isn’t true, and while there are no hard and fast rules the Family Law Act does set out a 4 step process for determining how a property pool should be divided. Those 4 steps are:
- Identifying the property pool;
- Considering the ‘contributions’ of the parties;
- Considering the ‘future needs’ of the parties;
- Deciding on a fair division based on the circumstances.
Let’s consider the Fourth step: reaching a fair agreement
After considering all of the factors mentioned above, you may end with a 50/50 split and that is ok. Or you might end up with some other ratio and that is ok too, as long as you both agree and consider it a fair division after considering the previous 3 steps.
If you are intending to finalise your agreement by way of consent orders, the court will want to satisfy itself that your concluded division of assets is fair and equitable in the circumstances.
Under a binding financial agreement, there is no scrutiny by the courts of your concluded agreement, however, both parties are required to receive independent legal advice before committing themselves to the agreement, to ensure that they are fully informed before consenting to the agreement.
If you’d like more information on how to take care of your property settlement without going to court and incurring high legal fees – Download a FREE eBook “We’ve decided to Separate- what happens now?”
Are you having trouble working through the process?
If you are unable to reach a mutually acceptable agreement, are having trouble communicating with your ex or require legal advice specific to your situation, we suggest you seek the skills of a mediator and/or family law professional.
Let us know if you would like a referral to a family law professional, phone us on 1800 608 088 .