5 Important Aspects of Divorce Settlements and Dividing Assets

Going through a divorce can take a toll on you, both emotionally and financially. Especially when it comes to the fair distribution of assets, there tends to be a lot of confusion. Married couples have joint ownership of multiple assets like their home, investments, joint accounts, vehicles, household items, and so on. Likewise, there could be shared liabilities such as home loans, car mortgages, credit card loans, and more. Reaching a consensus over splitting these assets and liabilities is the crux of a harmonious divorce settlement. Before you go ahead with the divorce proceedings and asset negotiations, here are some important aspects to understand:-

Proper Valuation of Assets and Liabilities is a Prerequisite.

Before going ahead with any financial settlement, a certified legal team has to conduct a comprehensive valuation. Both, the joint assets as well as the joint liabilities of the couple are taken into consideration. Apart from conventional assets like properties, cars, and savings, even inheritances, shares, lottery money, and jewelry are accounted for. Similarly, the liabilities go way beyond loans and mortgages, including tax liabilities, business liabilities, and more. Irrespective of whether your lawyer mediates outside of the court or before a judge, a foolproof asset-liability report is a must.

Understand the Legal Clauses of a Divorce Settlement.

You must understand that asset division and child custody are not a part of the main divorce proceedings. If you want your fair share of assets, a separate case needs to be filed at the Family Law Court. A qualified divorce lawyer will always suggest that you start this process beforehand. Even if your divorce is not finalized, having an asset-division plan in place is necessary for the speedy resolution of disputes. The property/assets negotiation can run parallel to the divorce proceedings. Remember, the separation clause of 12 months to qualify for a divorce hearing can take a toll on you financially. Additionally, marriage counselling is mandatory for couples who have filed for divorce in less than two years of marriage. Reaching a consensus on the division of assets beforehand will work in the favour of both parties.

Enlist your Financial and Non-Financial Contributions.

A crucial consideration while dividing assets is to put forth your contributions in acquiring or building them. Financial contributions entail that you submit paperwork on how you have acquired or maintained assets using your money. Even if you are not earning, your contribution towards parenting, home upkeep, and caregiving in the relationship is significant. Unlike some other countries where a 50-50 assets-division is imperative in a divorce settlement, Australian states don’t follow this approach. It largely depends on how well your divorce lawyer can present your contribution to building the assets and the relationship.

Citing your Future Requirements for Equitable Distribution.

Your financial requirements, responsibilities (children in particular), and current financial status are important criteria for assets division. Your age, health status, and livelihood sources are also crucial factors that the court will take into consideration. The first and foremost priority of the Family Law Court will always be the children of a couple getting divorced. Depending on whether you have sole custody or joint custody, your lawyers will have to provide sufficient paperwork for childcare. This would include the child’s basic needs as well as education. If your partner is the sole breadwinner but you have been allotted custody, you are likely to be granted more.

Understanding the Key Factors that affect Assets Division

Always approach a well-experienced team of family lawyers Adelaide to help you navigate the tricky zone of assets division. Apart from the aforementioned considerations and procedures, there are several other key factors to be gauged. Of course, how much you will get will directly depend on how well your legal team presents your case. But do take a look at these factors that can be game-changers in the final verdict:-

• Duration of the Marriage
• Number of Children and their Custody
• Age, Employment, Health Status, and Financial/Personal Obligations of Both the Partners
• Spousal Maintenance for Caregivers
• Assets and Liabilities before Marriage
• Assets and Liabilities after Separation but before Divorce Finalisation

Conclusion

Divorces are messy and tumultuous. Given how you shared your life with your partner, parting ways is complicated. Especially if you have children and intend to share joint custody, separating on a good note is highly recommended. With the right family lawyers Adelaide, this life-altering transition can be eased out to a large extent. Relying on a divorce lawyer who is well-experienced, meticulous, empathetic, and can negotiate well on your behalf is a wise decision. This will increase your chances of a peaceful, out-of-court settlement, whilst ensuring that you get your fair share of assets.