When a couple goes through a divorce, one of the main issues while separating the assets is how to go about dividing the house. Though it might not be one of the most expensive assets, it also has an emotional value attached to it.
The importance of the home in question for both parties involved can make property settlement a difficult process.
A property settlement lawyer will consider these few steps while negotiating your divorce settlement. Knowing about these will help you avoid expensive legal procedures.
The four-step approach in determining property settlement between separated couples is as follows.
- Establishing An Asset Pool
It is recommended that both parties go through all the financial records and estimate their net worth.
This includes disclosing what’s in individual bank accounts, the value of the properties that you own, the value of the shares that you own, and the shares that you might be having in a business, company, or trust.
You will be required to confirm the combined value of all the debts that you owe to a person, bank, or company.
- Considering the Contributions Made During the Relationship
The second step is to understand what contributions each of you made during the relationship.
This includes both non-financial and financial contributions. Non-financial contributions include things like housework, taking care of children, renovating the house and anything that helped in maintaining the house, family, and the relationship.
Financial contributions include government payments, wages, gifts, and inheritances.
- Considering the Future Needs of Both Parties
The next step towards a divorce settlement is understanding the future needs of both parties.
After deciding on the respective shares of the property based on financial and non-financial contributions, the court will proceed to make what is called an ‘adjustment’.
An adjustment takes into account various factors including the future needs of both parties. The court will consider various things like the earning capacity, age, and health of both the individuals, financial resources and employment prospects, responsibility of the kids’ post-separation, duration of the marriage, and the effect it had on the future earning capacity of the individuals.
You might have different living requirements and need specific finances to maintain your health and standard of living. In total, there are about fifteen prospective factors that will be considered in regard to what each individual will need and what they can pay to support the other.
- Fair & Equitable Decision
The fourth step is where the court looks at whether the decision is fair and equitable for both of you.
The court will then decide whether you get to keep certain assets or if they will go to your previous partner.
Women with dependent children could be at a considerable disadvantage compared to men in terms of financial circumstances and potential income-earning capacity following the marital dissolution.
Single mothers and older women who live alone post-divorce might experience a drastic fall in the standard of living and may be looking for financial support.
The court might suggest a higher adjustment in favour of them as they have a relatively lower earning capacity.
Some Suggestions For Divorce Settlements
Here are a few common ways suggested by our property settlement lawyers for you to settle the family home in a divorce.
Sell The House
If neither of you wants to stay in the house or neither of you can afford to stay in that house, then it is recommended to put the house up for sale in the market.
This will allow you to get the possible price. We know how hard the moving out process can be and how you might feel final and done after it.
But at times, it is better to have the sale money instead of a huge property that reminds you of the divorce.
Buyout
A house buyout is when a spouse releases his or her interest in the house. This will be done in exchange for cash or a promise of cash that will be paid in the future.
This often happens when the primary caregiver wants to stay in the house along with the kids.
Buyout involves a lot of intricacies, and you will need an expert negotiator that can provide legal advice and work with your best interest in mind.
Co-ownership
Sometimes, a buyout or sale might not work well for your situation. In such cases, co-ownership for a predetermined amount of time might be the best solution.
This will essentially redefine the relationship with your spouse. You will now have a business relationship as co-owners.
Get The Best Lawyers in Brisbane to Assist You
A team of experienced lawyers at Fit Lawyers aims to provide the service that is right for you. Our team of best lawyers will always try to mediate things and negotiate matters with the other party before taking things to the court.
Whether you have reached an agreement or want to formalise it so that it is legally binding and enforceable (such as in a binding financial agreement), we will help you do that while ensuring that there are no further financial claims.
Divorce lawyers in our team will negotiate agreements with your spouse and their lawyers while representing you in the family court proceedings. We are familiar with the family law act and family law.
The information provided here is not a substitute for legal advice.
You can book an appointment and visit our office to talk to our lawyers and get independent legal advice on various topics.
For further information, call us on 0415 835 733 or write to us at fitlawyers.au@gmail.com