Property settlement agreement Kirra in Australia is calculated following a four-step process. Following
amendments to the Family law courts, the financial matters of de facto couples
are now resolved in the manner as those of married couples.
The
first of the four steps identifies the assets, liabilities and financial
resources of the couple and are valued. The second is the assessment of the
financial and non-financial (like a homemaker role) contribution of each.
Future needs factors
The 3rd
step is known as the “future needs factors” is applied by reference to the
section that lists the future needs that the court must consider. This is in
relation to the ages and health of the parties, whether either one have the
care of a child of the marriage.
Also
includes the mental and physical capabilities for employment and their
potential earnings. After these factors are considered, the court may give the
person with the lower earning capacity an additional loading of the matrimonial
property.
This is
especially true if the person has a high cost of living as can come from the
care of the children from the relationship. Often, this means the person in
that situation will receive more than 50% of the conjugal property.
After separation, before settlement
There
is an issue on separation on how the parties will deal with their joint and
individually-held properties. Conditions arise like drawing on joint funds,
running credits cards to the limit or selling certain properties.
In
events that certain properties had been disposed of or are transferred between
separation and settlement, this property is considered “notional property”. It
is then added back to the pool of assets as property that is said to exist
“notionally”.
Add-back categories
There
are three common categories of ‘add backs’ that the Family Law Courts have
identified. If the legal fees have been paid from funds which were available to
both parties at separation, these funds shall then be “added back” as a
notional asset of the party who had the benefits of such funds.
If one
party disposes of a certain asset and uses the proceeds of the sale for their own
benefit is considered premature distribution of funds. If a party allegedly
“wasted” and spent funds on selfish pursuits like gambling, lavish holi9days,
extravagant gifts, etc., this is classified as deliberate diminution of
property funds.
Property valuation
There
could be difficulties in identifying or valuing certain properties in the
finalization of property matters between spouses. The issues could arise when
either party is involved in a business or an interest in a company trust or
partnership.
Additionally,
if there are interests of either or both partners in rural property where it is
a part of an ongoing family concern and in circumstances where one party is not
aware of the other’s property and as such must engage in investigative searches
and enquiries to identify the value of such.
These
are some considerations you need to be aware of in order that you can ensure your
financial future after a property settlement agreement Kirra with a former spouse.
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