Property Settlement in NSW

Property Settlement in NSW

Property settlement is an essential component of any divorce or separation. The division of properties between the parties involved in a relationship dissolution is regulated by the law in New South Wales (NSW), Australia. Property settlements in Australia are primarily regulated by the Family Law Act 1975. Married couples and individuals in de facto relationships who have separated are subject to this act.

Monetary and non-monetary contributions are typically taken into account when determining property division. It is imperative to recognise a number of factors that the Family Law Act may take into account, which you may not be aware of. The following are included:?

• payments for personal injury settlements,?
• the pension benefits of both parties,?
• future demands,?
• each party's prospective earning power in the future,?
• the health of the children and both parties, and?
• financial resources such as anticipated future inheritances.

How Does a Proposed Property Settlement Work?

The Family Law Act urges parties to make property settlement agreements because they are usually quicker and less complicated to complete. Most importantly, it resolves all outstanding financial matters between the parties. The settlement of property involves:

• Creating a net asset pool and asset valuation;
• Assessing contributions to the collection of net assets;
• Estimating future requirements and adjustments; and
• Taking into account the planned property settlement’s practical effects.

In NSW, a property settlement can be reached through informal negotiations, asking the court to issue a consent order, or entering into a binding financial agreement. The court will consider a range of factors, including each party’s:

• Direct financial contributions
• Indirect financial contributions; and
• Non-financial contributions
• Future needs of both parties; and
• Children of the relationship.

Property settlement agreements can be formalised two ways:

1. Consent Orders. If both parties have agreed on parenting and/or financial/property arrangements and want to formalise it, you can petition for consent orders. Consent orders can change or end family law orders.

2. Financial contracts. If a partnership ends, Binding Financial Agreements or BFAs govern property settlement and spousal maintenance.

Timeframes of Property Settlements

Property settlement and spousal support determination have time constraints in family law proceedings. If you and your spouse break up, whether you are married or in a common-law partnership, you must commence property settlement within the timeframe. Below are legal time limits:

• For married couples, an application must be lodged within 12 months of the divorce becoming final.
• For de facto couples, an application must be made within 24 months after the de facto relationship has ended.

What if You Missed the Time Limit?

You can start procedures after the deadline. Extended deadline applications are accepted at the Family Court's discretion. Financial, emotional, demanding, and litigious applications can be draining. A Family Court decision on an out-of-time application is final.

An applicant who desires to file an application outside the statutory limit of 12 months for married parties or two years for de facto partners must demonstrate to the Court that the refusal will cause hardship to the applicant or a child of the marriage. Each claim's merits and hardship will be assessed by the Court.

If there is a finding that the applicant will suffer hardship, there are other circumstances that the Court will also consider.

• the causes for the delay;
• the anticipated legal costs if the proceedings are to proceed; and
• the possible occurrence of prejudice to the other party if the application continues.

The Necessary Information: Generally, the more information you can supply to your property settlement lawyer concerning your personal and professional finances, the better off you will be. You should present the following information to your lawyer:

• Mortgage and bank documentation
• Pay slips and receipts for rent
• Bills and receipts showing family expenditures
• Tax filings
• Statements for loans, credit cards, and bank accounts
• Profit and loss statements for businesses
• Superannuation declarations
• Statements of Centrelink benefits
• Personal debts
• Evidence of children’s costs, including financial support provided such as school fees and activity bills
• Statements of share dividends and information on any other investments

Obtaining legal advice is essential when dealing with family law matters. A family lawyer can advise you on your rights, the process, and legal traps, helping you negotiate or win a fair court case. Before taking action or going to the courts, seek legal counsel to understand your rights and responsibilities and how the law applies. Lack of legal representation can affect property settlement proceedings in court. Reach out Today.