When two people are involved in a relationship (marriage or de facto) and they decide to part ways and end the relationship, both parties need to discuss the division of their financial assets among themselves.
This can include transferring the ownership of anything ranging from cash, real estate or any other form of property between the two parties. For example, if both parties may agree that the house goes to one of the parties who will pay the other party in cash for buying out their share in the house.
Whenever two parties have decided to end a relationship and separate, it is very important for them to get advice from a legal practitioner who specializes in family and property law. This will help you determine what you are entitled to.
Formalizing a Property Settlement
When both parties that were previously in a relationship, have reached an agreement on the settlement and division of property and other financial assets, it is very vital to make it legal and get it on paper.
Typically, there are two ways of recording an agreement between the two parties:
1. A Binding Financial Agreement (BFA)
2. A Consent Order
Both of these forms of agreements are almost the same, but the difference is that a Consent Order has been reviewed and analyzed by the Court, whereas a Binding Financial Agreement is merely an agreement between the two parties without the Court overseeing anything.
You should consult any expert family lawyer in Sydney to help you decide which form of agreement is the best for you.
Make Property Settlements Soon After Separation
If two parties who were previously in a relationship have not cut financial ties with each other, there is a possibility that either one of the parties can make a Property Settlement claim against the other.
This means that if you have acquired any new assets or have improved financial conditions after you were last in that relationship, all your new assets and finances are subject to a division, if a property settlement claim is made by the other party.
Another problem is the fact that if your partner sells or wastes any assets that were to become a part of the assets being divided, they will no longer be included in the settlement. The reason is that the Court cannot deal with finances and assets that don’t exist anymore.
Be sure to approach a reputable family law firm in Sydney to assist you with your property settlement. If you are in Sydney, Platinum Lawyers are the expert family lawyers in Sydney and can help you during these difficult times keeping your interest as a top priority when making a settlement. You can contact us at (02) 8084 2764. for any queries or concerns.