Understanding the Common Misconceptions About Property Settlement in Family Law

Many issues set in as soon as a relationship ends in Australia. One example is the issue of liability and asset division. Today, property settlements in Family Law have many myths. Relying strictly on these misconceptions can complicate matters and result in stress. Here’s where the need to partner with experienced property settlement lawyers in Sydney comes in.

As you read on, you’ll discover the common property settlement myths in Australia and how to avoid them.

1.   Property is Always Split 50/50

One big misconception about family law is that assets are automatically divided into two equal halves. This is a big lie! In reality, there’s no such thing as an automatic 50/50 split. Instead, the Family Court factors in the following things before deciding the sharing percentage:

• Financial and non-financial contributions made by each party.
• Future needs, such as health, income, child care, and age.
• Checks to understand if the outcome is fair and equitable

The bottom line is that there’s no such thing as an automatic 50/50 split. Instead, the Court is responsible for deciding how the assets and liabilities will be divided.

2.   Only Joint Assets Count

Are you a part of those who believe only jointly owned assets are included in property settlements? If yes, then you need to know that this is not true in reality. The Family Law Act 1975 reveals that all properties are considered during asset division. This means both individually owned and jointly owned properties are considered. They include:

• Real estate
• Bank accounts
• Shares
• Superannuation
• Vehicles
• Personal belongings
• Businesses
• Debts and liabilities

Besides, if care isn’t taken, assets acquired within the one-year separation window may count for property settlement. For clarity on how this works, it makes sense to partner with reliable property settlement lawyers in Sydney.

3.   Informal Agreements Are Legally Binding

During separation, many couples often reach informal agreements. While this is okay, what is not true is thinking these informal agreements are legally binding.

The only possibility is if the informal agreements are formalised through a Binding Financial Agreement or Consent Orders. Apart from this, the agreements are never legally binding.

Relying on this misconception can always leave you vulnerable to future claims. To avoid this, ensure that you do your due diligence if formal agreements are already in place. You can seek guidance on how this works by partnering with reliable property settlement lawyers in Sydney.

4.   Superannuation is Off-Limits

Another big misconception about family law is that superannuation is “untouchable” during property settlement. Well, this is 100% wrong!

The Family Law Act 1975 considers superannuation as property. This means the Court can always split it. In Australia today, this legal process is known as superannuation splitting. This process ensures both parties’ retirement interests are carefully considered during property settlements.

5.   Property Settlements Must Occur After Divorce

Another misconception is thinking property settlements must occur after divorce. That’s not true because settlements can always happen before or after divorce. Many property settlement lawyers in Sydney often advise couples to finalise property matters sooner (not later).

• For married couples, applying within 12 months of your divorce is crucial.
• For de facto couples, the limit is 2 years.

Missing these deadlines can make matters complicated.

Why Partner with EM Family Law?

No two families’ financial situations are equal. This explains why working with experienced property settlement lawyers in Sydney matters.

With EM Family Law, below are a few goodies you can expect:

• Professional guidance and clear advice about your entitlements.
• This partnership ensures all agreements are legally binding.
• Protection for your financial future
• Prevention of unnecessary legal disputes

Take action today! Never let the aforementioned misconceptions lead you to make costly mistakes during property settlements. Speak with experts at EM family law today. Our team of experienced property settlement lawyers in Sydney offer legal guidance and practical advice necessary for fair compensation. Get started with them today by requesting a callback.