Before you are faced with a property settlement, it is important that you know what this is. There are some facts regarding these agreements that you have to be aware of. However, there are five key points which you must know about property settlements.
What Is Considered Property?
Before you can look at property settlements, you need to know what is legally considered property. The property will include all assets which were owned or controlled by either or both parties in a relationship. That can include real estate, shares, interests in businesses, artwork, boats, vehicles, and money in bank accounts. Benefits or entitlements which are held in trusts can also be part of the property pool.
What Is A Property Settlement?
When a de-facto relationship or marriage comes to an end, the financial ties that link the parties will need to be finalized. A property settlement will be the separation of the property which was held during the relationship. Property settlements are subject to family law and will be regulated through various acts.
How To Formalize A Property Settlement
Any agreement regarding a property settlement will need to be formalized and legally recorded. There are two ways that property settlements are agreed, and they are with a consent order or a binding financial agreement. It is important that you know about each of these agreements.
A consent order is where both parties have agreed to the property settlement. The court will also need to approve the agreement before it can make the order. The court will ensure that the settlement is equitable and fair.
A binding financial agreement is an understanding between the parties and will not have to look at by the court. This means that the court will not check that the agreement is equitable and fair. However, the parties will need to consult with an attorney to agree legally valid.
Why You Need To Formalize The Property Settlement
There are many reasons why you need to formalize the property settlement. There are law implications in property settlement. However, there are two reasons why are considered more important than others. The first is that a consent order and a binding financial agreement are both legally binding. This means that if either party does not comply with the settlement, the court can be called on to enforce compliance with the agreement.
The second is that is this will finalize your financial relationship with your former partner. Once a property settlement has been finalized, they will not be able to make any further property settlement claims against you.
What To Do If One Party Does Not Want A Property Settlement
There are times when one party wants to finalize the property settlement and the other does not. At this time, your attorney will need to contact the other party in writing to suggest mediation. If the other party refuses mediation, it is possible to bring an application for property settlement. This means that both parties will have to go to court and the court will make the decision.