How Does Property Settlement Work After Separation?

After separation, one of the biggest questions people often have is how property, assets, debts and financial resources will be divided. Property settlement can involve the family home, investment properties, savings, superannuation, businesses, debts and other financial interests.

This article explains the general property settlement process after separation. If you need advice about your circumstances, speak with our property settlement lawyers in Perth.

What Is Property Settlement?

Property settlement is the process of dividing property and financial interests after separation or divorce. It can apply to married couples and, in many cases, de facto couples.

A property settlement may deal with assets, debts and financial resources held individually, jointly or through related entities. It is important to understand the full financial picture before making decisions or signing any agreement.

Step 1: Identify the Asset Pool

The first step is usually identifying the property pool. This means gathering information about the assets, liabilities and financial resources of both parties.

• The family home
• Investment properties and real estate
• Bank accounts and savings
• Shares and investments
• Vehicles and personal property
• Business interests, companies or trusts
• Superannuation
• Mortgages, loans and credit card debts

Our family law financial matters lawyers in Perth can assist with financial disclosure, asset identification and understanding your financial position after separation.

Step 2: Financial Disclosure

Financial disclosure is a key part of many property settlement matters. Each party may need to provide documents showing their income, assets, liabilities and financial resources.

Common documents may include bank statements, tax returns, payslips, superannuation statements, mortgage documents, business records and valuations. Full and frank financial disclosure helps ensure negotiations are based on accurate information.

The Federal Circuit and Family Court of Australia provides general information about property and financial matters in family law.

Step 3: Consider Contributions

Property settlement often involves considering the contributions made by each party during the relationship. Contributions may be financial or non-financial.

• Income and wages
• Property owned before the relationship
• Mortgage repayments and savings
• Gifts or inheritances
• Renovations or improvements to property
• Homemaking and parenting contributions
• Contributions to a business or family enterprise

Step 4: Consider Future Needs

Future needs may also be relevant. This can include factors such as income, earning capacity, age, health, care of children and financial responsibilities moving forward.

Every matter is different, and the outcome will depend on the specific facts. This is why practical legal advice is important before agreeing to a property settlement.

Step 5: Formalise the Agreement

Once an agreement is reached, it should usually be properly documented. Informal agreements may not provide enough protection if a dispute arises later.

Property settlements are commonly formalised through consent orders or a binding financial agreement. The right option will depend on your circumstances and the type of agreement reached.

• Consent orders
• Binding financial agreements
• Superannuation splitting arrangements
• Transfer of property or refinancing arrangements
• Agreements about debts and liabilities

If you are considering an agreement, our Perth property settlement lawyers can help you understand your options and prepare legally effective documents.

Is There a Time Limit for Property Settlement?

Yes. For married couples, there is generally a 12-month time limit after divorce becomes final to start property settlement or spousal maintenance proceedings. For de facto couples, there is generally a 2-year time limit from the date of separation.

If you are unsure whether a time limit applies to you, seek legal advice as soon as possible. You can also review general family law information through the Family Court of Western Australia.

Do You Need to Go to Court?

Not all property settlement matters go to court. Many matters can be resolved through negotiation, mediation or consent orders. However, if agreement is not possible, court proceedings may be necessary.

Our family law mediation support lawyers can assist with preparation for mediation, while our family court representation lawyers in Perth can assist if court proceedings are required.

Speak With a Perth Property Settlement Lawyer

Property settlement can have long-term financial consequences. Before making decisions about the family home, superannuation, debts, business interests or financial agreements, it is important to understand your rights and options.

Adamson & Adamson Lawyers provides practical property settlement advice to clients across Perth and Western Australia. Contact our property settlement lawyers in Perth or book a consultation.