Financial matters to consider after a marriage breakdown
Tips from our Financial Settlement Lawyers
Following the end of a marriage or de facto relationship, there will usually be a Property Settlement. This is an agreement or Court Order that outlines how the assets of the relationship will be dealt with. It will as far as possible, bring the parties’ financial relationship to an end.
Whether your property settlement is determined by the court or is negotiated between you and your former spouse, this process generally takes some time. In some cases, arrangements can take well over twelve months to finalise.
Therefore, you need to have interim arrangements put in place. These starting arrangements will stay in effect until you reach a final agreement, or until the court decides otherwise.
Following a separation, you should consider what arrangements will be put in place in relation to the following:
- Who will pay the joint expenses? Following a separation, everything from the mortgage/rent payments to the school fees still needs to be paid. Knowing who will be paying what is important.
- What will happen with the joint bank accounts?
- What will happen with other assets, such as investments?
- Are you entitled to spousal maintenance, or should you be paying your spouse spousal maintenance? Spousal maintenance is when one spouse pays the other if they can’t afford their expenses. This payment is made if the spouse’s income is insufficient to cover their costs.
- Is child support payable? Child support is calculated based on each party’s income and the amount of time the children spend with each parent.
- Who will stay in the family home? Will you continue to live separately under the same roof, or will one party move out?
- Is there a family business? If so, interim arrangements need to be in place for the ongoing management of the business, including the day-to-day running of the business.
It is prudent to obtain legal advice before agreeing to any interim financial arrangements. What you agree to following the separation can have consequences in relation to the ultimate arrangements.
Our expert family lawyers in Cairns can provide you with advice to protect your financial position. By discussing your property settlement with lawyers in advance, you ensure you are in the best possible position moving forward.
Frequently Asked Questions
How long does it take to apply for a property settlement?
Most property settlements are settled without going to Court. In these instances, it is generally much quicker and easier to reach an agreement that both parties are happy with. Consult with an expert family lawyer who can guide you through the process.
Remember that you have 12 months after a divorce or 24 months after a de facto separation to apply to court.
My de facto relationship has ended. Can I apply for a property settlement order?
For de facto relationships that ended after 1st March 2009, you are entitled to apply for a property settlement under the Family Law Act. Even if your de facto relationship ended prior to 1st March 2009, it is important to speak to a family lawyer.