How Does Settlement on a Property Work?

If you have separated or been divorced from a partner then you don’t need us to tell us how tough this can be. Beyond the emotional difficulty of this kind of event, there can also be legal ramifications when it comes to the division of assets. One area of this that we are going to focus on today is the settlement of a property after a separation. This can be a tough aspect of separation and you should always seek to enlist the support of a property settlement lawyer where you can.

Let’s take a brief look at how this kind of settlement works in the eyes of the law.

Difference From Financial Assets

Unlike financial assets which you need to agree upon with your ex-partner, the property can be distributed between the parties through a settlement. This is why some legal experts work solely within this area of the law. If you are looking for a great settlement lawyer, Melbourne has some fantastic options, who will support you with both the division of assets and the settlement of the property.

Reaching an Agreement

The absolute utopia for you and your ex-partner is that you can reach an agreement as to what exactly will happen with the property or properties which you have accumulated during the relationship or marriage. It may be that you decide to sell them off and split the finances from the sale, that one pays the other off, or indeed that joint ownership continues – a preferred option for those who have children.

Agreement Options

There are two potential outcomes when you and your partner agree on the property; a binding financial agreement or via consent orders. The former is a very basic agreement, signed before the law, of what you and your ex-partner have agreed upon regarding the settlement of the property. A consent order on the other hand will take into consideration both the needs now and in the future for each partner, and they will include other assets and potential liabilities. Owing to the more detailed nature of this kind of agreement they are generally water-tight and cannot be appealed or contested after being agreed upon.

Taking Action

Something which a lot of people aren’t aware of is that action needs to be taken swiftly after separation to settle the property. If you have been in a marriage then you need to fix this within 12 months after the divorce has been finalized. If however you have been in a relationship but were not married, you will have 24 months to deal with this kind of issue.

Using a Lawyer

Whilst there is no obligation on your part to use a property settlement lawyer, it is always something that we would recommend. At the very least you should speak with such a legal professional to get some advice as to how you should proceed. Those who get caught out are generally those who have not sought the advice of legal professionals.

Any further questions don’t hesitate to get in touch using the comments section below.