Generally speaking, property settlement in the context of divorce refers to the division of assets and liabilities between you and your former spouse or de facto partner. This important step finalises the financial ties between you. Without severing this financial relationship, you leave yourself vulnerable to property settlement claims being made against you in the future, subject to relevant time limitations.
All assets (things you own) held by you and your former partner in joint or separate names such as:
All assets under your own or your former partner’s control such as:
All liabilities (things that you owe money on) in joint or separate names such as:
Note: It may also include property you held in your own name prior to entering into the relationship, or property you have acquired since separation.
Related Article: Dealing With Your Finances During A Separation
Firstly, formalising your property settlement with your former spouse finalises your financial relationship, meaning your former partner cannot make further property settlement claims against you.
Secondly, a Consent Order and Binding Financial Agreement are legally binding, meaning if your former partner breaches the order you have recourse to the Court to enforce compliance with the agreement.
As each relationship is unique so is each divorce, seeking good legal advice early on is an unquestionable way to achieve an equitable and amicable result for you and your former partner.
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 firstname.lastname@example.org