How Divorce Settlements Are Done

Sorting out money is, for most couples, the most daunting part of separation and divorce. You will need to think about how you are going to talk through divorce finance issues with your partner in order to best reach a fair and desirable financial settlement. The financial issues to consider during a divorce will differ from family to family. Divorce settlements agreement is a written document that goes by many names, depending on where you live.

It can be referred to as any of the following:

·         Divorce Settlement Agreement

·         Separation Agreement or Separation and Property Settlement Agreement

·         Custody, Support ,and Property Agreement

·         Mediated Separation Agreement

·         Collaborative Settlement Agreement

·         Property Settlement Agreement (PSA)

·         Marital Settlement Agreement (MSA).

If you settle everything before taking your divorce case to court, an attorney or mediator can draw up an agreement. Once signed, the Divorce Agreement becomes a binding contract, which means both spouses are obligated to follow its terms. Depending on your state’s laws, the agreement may be submitted to a judge that can make sure the terms are fair. It will then be incorporated into your final divorce decree and become a binding court order; if either of you violates the order later on, you could be held in contempt of a court. If you and your spouse can’t agree, you’ll probably end up in court, where you’ll have to put on your case and ask a judge to decide all issues for you. Because this process is unpredictable, and often very expensive, reaching an agreement outside of court is the preferable way to go. When you go through divorce settlements, the court will decide how your assets are split. There is no exact rule on how this is done, as each case is treated on an individual basis.

The court will review both your joint and individual bank accounts, so work out the value of any funds held by you or your partner before your divorce settlements Brisbane begins:

• Savings accounts: Check your recent statements and update any saving passbooks you may have with your bank or building society.
• Property value: Find out how much your property is worth, and compare this with your remaining mortgage balance to see if you have any equity in the property.
• Value of your debt: Find out what debt you or your partner have in credit cards, overdrafts, loans and any other type of credit commitment.
• Household income: Work out how much you spend on running your home, and what disposable income you have.
• Valuables: If you have expensive items, get them valued and record their prices.
• Investment portfolio: If you have one, contact your independent financial adviser (IFA) for an update or your most recent documentation.

Your financial settlement is usually the final stage in the divorce process. This is where the courts make the order regulating your divorce settlements Brisbane and can be achieved either by agreement between you and your former spouse or after a contested hearing. Either way, once they have done so, the settlement becomes a binding ‘financial order’. Basically, reaching the financial settlement comes as a relief to divorcing couples as typically it marks the stage of “drawing the line” enabling both parties to find closure and move on with their lives.