Post Separation Assets: Why a quick property settlement is crucial

Once you and your partner have separated it’s a good idea to seek a property settlement sooner rather than later. Why? Sometimes surprising to clients, the law regards asset accumulated after separation as relevant to the net assets of each party at the date of settlement or trial.

This means if you win the lottery, inherit a large estate, significantly increase your income, superannuation, savings or even receive compensation, purchase a vehicle, house or furniture this all could form part of the net assets available for division with your ex-partner.

How the Courts decide to divide assets and debts

There is no formula used to divide your property, however the courts will make a decision of what is just and equitable based on the individual circumstances of your family. The Courts consideration will be based on:

• working out what you’ve got and what you owe, that is your assets and debts and what they are worth
• looking at the direct financial contributions by each party to the marriage or de facto relationship such as wage and salary earnings
• looking at indirect financial contributions by each party such as gifts and inheritances from families
• looking at the non-financial contributions to the marriage or de facto relationship such as caring for children and homemaking, and
• future requirements – a court will take into account things like age, health, financial resources, care of children and ability to earn.

Related Article: Property Settlement and Divorce: Key Facts You Need To Know

It must also be noted that the accumulation of debt after separation by one party may also be shared in the division of assets and debts by the Courts.

To avoid post separation asset or debt accumulation being factored into your property settlement, it is highly advised that you settle your property as soon after separation as possible.

It is also highly recommended that you receive legal advice at this stage to establish exactly what it is you are entitled to.

Note: This is general information advice only and does not constitute specific legal advice. If you would like further information in relation to this matter or other legal matters, please contact us on 03 9620 0088 or email info@resolveconflict.com.au