How Does COVID-19 Impact My Family Law Property Settlement?

When negotiating your property division, the first step is always to identify and value the asset pool.

COVID-19 is changing the value of assets at an accelerating rate on a daily basis.

We have received many calls from people concerned about how the changing financial landscape will affect their property matters. Here are some common questions we have received.

Superannuation Values

We’ve agreed on a property settlement with a superannuation rollover to the other party and overnight my superannuation balance has dropped making the rollover unfair – what should I do?

Depending on what stage of negotiation you are at or whether you have Court orders or a Binding Financial Agreement, changes may be possible. Please call us for an obligation free discussion.

Cash Payments

Our property settlement has me making a cash payment to the other party for their share of the house based on values 2-3 months ago. Now that house prices may be dropping by 20% can this payment be adjusted?

The answer is yes in some situations this will be possible but we will need to understand the actual facts of your particular matter.

Business Valuations

Where business assets form part of your property pool, their value may have changed significantly. In some cases, businesses may not survive COVID-19 and if they do, their value may be severely diminished.

Again, please call us to discuss as depending on your individual circumstances, we may be able to assist with renegotiating your property adjustment.

House Prices

If house prices fall dramatically, it may not be possible to implement Court orders or a financial agreement, so changes may need to be made.

Other questions – Here are some questions we have been asked recently

I was meant to receive a payment and property transfer pursuant to Court Orders but now the other party is asking for more time because of COVID-19. Do my Court orders still apply?

 Yes, they do, however the reality may mean that the orders may be difficult to implement in their current form.

 

We have agreed on settlement and consent orders have been drafted and signed but not yet submitted to the Court. Can we renegotiate them now as our property pool has significantly diminished?

All property divisions must be just and equitable according to the law. If circumstances have changed significantly, the agreement might no longer meet the legal requirements. Please call us to discuss.

 

Each family situation will be different and will be affected by COVID-19 in different ways. Call us for a no obligation chat to discuss how we might be able to help.

 

Note: This is general information advice only and does not constitute specific legal advice. If you would like further information in relation to this matter or other legal matters, please contact us on 03 9620 0088 or email [email protected]

 

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