The lowdown on Property Settlement
Understandably, you may be cautious about starting a property settlement as you may have some pre-conceived ideas about them that have become public belief.
It is important to remember that every situation is different and that you should always obtain legal advice before making decisions based on what you may have heard from other people.
Some of the main property settlement myths are:-
“I’ll get half of everything”
There is no automatic 50/50 split to the parties. Many other matters are considered when determining the division of the property pool.
“I made more money than my partner, so I should receive a greater share.”
Although in some cases this is correct, both financial and non-financial contributions are considered to determine a fair division of the asset pool.
“We signed a pre-nup so I am protected”
Known as Binding Financial Agreements (“BFA”) in Australia, while they are helpful in many situations, it is important to know when entering into a Binding Financial Agreement, that there are certain circumstances which can set aside a BFA in the future. It is imperative to obtain legal advice before entering into a BFA.
“They cheated so that should count, right?”
That is not correct. Australia is a ‘no fault’ jurisdiction.
“All my assets are protected by my company”
In fact, this is a very common misconception about assets held by a company and/or trust. Only in rare circumstances are assets protected and isolated from the asset pool by being held in a company or trust.
“I will just transfer the house into my mother’s name”
Incorrect, unless the third party who you are transferring property to has an equitable or legal interest, you cannot isolate an asset from the property pool by transferring to another person.
“I paid the deposit to buy the house so I should get my money back”
This is one of the biggest misconceptions in property settlements. While an initial or lump sum contribution is considered, you will not receive dollar for dollar back in a settlement. It is important to know that over time, particularly in lengthy marriages, an early on contribution will diminish in its value.
Contact Lindbloms Lawyers to find out more about property settlements and how we can help you get the best outcome for your matter today on (08) 8357 7611