Divorce and Property Settlement - How They Differ

A lot of couples tend to think that emerging financially and property settlements come with divorce when a marriage or de facto relationship breaks up. Nevertheless, the two legal practices, that is, property settlement and divorce, are obtained within the same field, namely, family law. It is important to understand the distinction so that your rights and privileges are not infringed anywhere.

What is a Divorce?

Divorce is synonymous with disintegration of marriages through the legal means. The Family Law Act 1975 is the governing law in Australia and the Federal Circuit and Family Court of Australia deals with this kind of process.

In order to get access to divorce, you are required to prove:

that you have been separated, at least 12 months prior, with your spouse.

The marriage has irreversibly failed and there are no real chances of reconciliation.

Notably, only married consumers can divorce. In a de facto relationship there is not even a divorce in legal terms, you just end it.

The decisions related to distribution of property, spousal and child support and child custody are not made during the divorce. Such problems are negotiated afterwards or even before the divorce takes effect.

What Is a Property Settlement?

The property settlement is a legal extent of division of property, financial assets, debts between separating partners. It covers both married couples as well as de facto partners.

Settlement of property can vouch safe:

The home place of the family

• Superannuation

• Bank Accounts and investments

• Business and trusts

• Automobiles and personal possession

• Loans, credit cards and mortgages

The purpose is to have a fair and equitable slicing of the property pool. This is not at all times 50/50, all the financial and non-financial support, future need of each party and bringing up the children are taken into account here.

Property settlement can occur:

By mutual agreement, documented in a Consent Order or Binding Financial Agreement

Through court proceedings, if no agreement is reached

Must I complete Divorce Property Settlement?

Not always - but some time limits which one must keep in mind:

There is 12 months provided in which the married couples must apply in court for property settlement following the divorce process.

De facto couples get 2 years once they have split.

Not acting within those time frames may lead to forfeiting a legal right to a property settlement except on special license by the court.

What Is So Important about Property Settlement?

It is a common misconception among several individuals that after divorce or separation, all financial relationships would automatically break. Even without a property settlement there could be a potential claim by either party in future-even years later after a separation.

A conclusion of your property issues gives:

• Closure and certainty of the law

• Insurance of future income and properties

• Clean break so that both parties can go ahead with their financial independence

Is My Property Settlement Doable without a Court?

Yes, at that and in fact most of the property settlements are settled without going into court. Options include:

• Settlement by the parties or Property Settlement Lawyers Perth negotiations

• Family dispute resolution with a qualified family dispute resolution practitioner

• Making an agreement with Consent Order or Binding Financial Agreement, which is legally binding

• Litigation is a last resort option since proceeding to court may be time consuming, emotionally exhausting and costly.

Final Thoughts

When divorcing your partner, it is necessary to know the difference between divorce and property settlement. The legal marriage is merely terminated by divorce and property settlement implies that nothing will be unfair in regards to division of finances.

Lack of adequate settlement in terms of property may translate to economic wrangles in the future. Hiring an attorney as early as possible in the process can ensure that you guard your interests and the process is more amicable, efficient and resultant.