The first step in the property settlement process is to arrange a property inspection. An official inspection of the property takes place before the transfer of the title. Many buyers arrange this inspection with the help of lenders or licensed conveyancers. The contract of sale usually stipulates that the property must be in the same condition as when it was sold. The inspections that take place during the property settlement ensure that the property is transferred in the same condition as it was when it was sold.
A lawyer will also ask about your net worth. It is best to establish this earlier than later. Your assets and liabilities may include a valuable house, shares, cars, superannuation and other assets. However, you may be liable for certain debts like credit card bills and a car. A lawyer can refer you to a financial planner or accountant to help you understand your situation. These professionals can also explain how the property division process works.
During the settlement process, both parties must provide financial statements and other legal documents. The court will apply a four-step process to determine an equitable property adjustment. It will decide the size of the property pool. Assets, liabilities, superannuation and debts will all be included in this assessment. Parties must disclose their superannuation and assets to the court. The court will determine the amount of each party’s share.
A property settlement can take place through the Family Court of Australia or by consent. Both partners will need to prepare a list of all assets and debts they own. This list will also indicate if the property is being sold or remortgaged by the other partner. It is best to contact a lawyer before starting the process, and to collect all relevant documents. For example, if you are planning to leave your house, get a copy of your financial statements.
Financial disclosure is a difficult concept to grasp. Getting legal advice is highly recommended, as the requirements may seem daunting. However, Rule 6.01 of the Federal Circuit and Family Court of Australia Rules 2021 state that all parties must make full disclosure of relevant financial information, from the onset of the matter until it is finalised. Generally, the two parties must provide copies of three most recent financial statements, as well as their last four business activity statements.
In most cases, the parties can settle their dispute without the use of legal proceedings, unless there are substantial assets to divide. In such a case, the lawyer will analyze the needs of each party to determine how much they contributed to the property. Important dates and details, such as how the marriage began and when it ended, should be included. Other details should include the number of children, and whether either party contributed more to the household’s wealth.
While property settlement Armadale is typically an acrimonious process, it is possible for a couple to reach an agreement without a court order. It’s crucial to seek legal advice and ensure that the settlement is fair for all parties. For example, if the couple has shared the property for years, it is possible for one of them to lodge a caveat on it to prevent the other party from selling it. However, the caveat will be lifted after the property settlement has been finalised.