The law encourages parties to negotiate and reach an amicable agreement as to the division of property following separation. If you have come to a Property Settlement Agreement with your former partner then you may wish to formalise this by entering into a binding property settlement agreement.
Sometimes parties come to an agreement without having properly considered the nature and effect of their agreement.
When negotiating a Property Settlement Agreement some things to keep in mind include the following:
- Property Settlement Agreements differ depending on your particular set of circumstances.
- A fair Property Settlement Agreement may depend on the length of your relationship or marriage and this is just one of the factors to be considered.
- There may need to be an adjustment for financial contributions made prior to the relationship by either party.
- There may need to be an adjustment for one of the parties’ future needs such as their age, health, ability to work and their earning capacity.
- There may need to be an adjustment in favour of the party who has the greater care percentage of any children under the age of 18 years.
- There may be additional adjustments required for any loans to the parties from one of the parties’ parents or family members. You may also need to consider the nature of any gifts from either parties’ parents or family members.
- There may need to be an adjustment for any inheritance received by a party and considerations need to be had for when the inheritance was contributed to the relationship
i.e. before, during or after the relationship and/or marriage.
- You should consider any tax consequences such as capital gains tax and there may be a need for particular advice from your accountant or a financial planner.
It can be difficult to navigate and consider the matters above on your own and how they apply to you and your family. As such, it is important to get the right advice when negotiating a Property Settlement Agreement. We recommend obtaining advice from an experienced and knowledgeable lawyer that specialises in Family Law matters.
A skilled Family Lawyer will be able to explain to you what a Court may do if it were to consider a Property Settlement Agreement having regard to the facts and circumstances relevant to your matter. They will also be able to help you navigate the law with regard to what you would like to achieve and what you consider might be best for you and your family.