Can You Agree on Property Settlement Before a Divorce Is Final?
If you've done everything you can to retrieve a relationship but believe that matters have gone too far, you may be resigned to a divorce. You may know that there is a process involved and that it will take some time to register for this event, and you also know that you will need to distribute the property between you. But do you have to wait until the divorce is final before property settlement, or can you move ahead in any case? What do you need to know?
Understanding Legal Limits
The simple answer is that you can proceed with property settlement as soon as you know the situation is irretrievable. If there is no likelihood that you will get back together, you can start the process of property distribution.
In most situations, you must start your property settlement proceedings no later than 12 months after your divorce becomes final. The law may be slightly different regarding a de facto relationship, but if you want to be clear, you should ask your solicitor as soon as possible. Just remember that if you do not go ahead with any property settlement case before that deadline, you may be deemed to be out of time. This is not the end of the story, but the matter could be a lot more complex than it needed to be.
Getting the Process Underway
Nevertheless, you can go ahead with the settlement well before you get the divorce decree. This will involve a multistep process.
Establishing the Property Pool
To begin with, you need to agree about the property pool, taking into account the assets and liabilities and setting specific values. Many elements can define a property pool, including your home, investment properties, and bank account. You can consider superannuation funds, family trusts, stocks and shares, or individual companies.
Distributing the Assets
Once you have established the property pool, you need to determine how each party contributed to its generation. This will include not only financial contributions but non-financial elements as well. How did one person contribute to the value of a given asset, perhaps in the role of a "homemaker?"
Assessing Future Needs
Next, it's important to look into the future and see how divorce affects those individuals. Does one have a significant income disparity from the other? Could age and health come into the picture and require any adjustments to the final distribution?
Moving on
As you can see, there's quite a lot involved in a property settlement. In fact, it's a good idea to start the process as soon as possible, so long as you know that your relationship is broken down irretrievably. Always talk with an experienced family lawyer to get professional advice as you unwind your affairs.
Contact a family law solicitor to learn more.
