Navigating the division of assets after separation or divorce can be complex and emotionally charged. Understanding the legal framework and factors that influence asset division is crucial for ensuring a fair outcome. That’s where Loukas Family Lawyers come in. We guide you through the essential steps and considerations involved in splitting assets after a separation, based on the legal principles applied in Perth and the broader Australian context.
Before the significant ruling of Stanford v Stanford (2012), property settlement applications under the Family Law Act 1975 (Cth) followed a structured four-step process:
- Identifying and valuing the net property of the parties.
- Considering the contributions of each party.
- Evaluating the Section 75(2) factors.
- Assessing the proposed order for justness and equity.
Impact of the Stanford v Stanford case
The Stanford v Stanford case introduced some uncertainty into how property settlements are handled. Previously, the process was more straightforward, following a clear four-step process. Now, there’s ambiguity around the order of these steps, with some suggesting that the fairness and equity assessment should come first. This means judges might have differing views on what is fair, leading to inconsistent decisions.
Despite this, the main principles remain the same. When a couple is no longer living together, the shared use of property and any assumptions about ownership from the marriage end. At this point, the court can intervene to fairly divide the property. This is guided by Section 79(4) of the Family Law Act, which considers factors such as the financial and non-financial contributions of each party, their future needs, and the overall fairness of the proposed settlement. This ensures that, despite the changes introduced by the Stanford case, the goal remains to achieve a fair and equitable division of assets.
Navigating asset division
As Perth’s trusted family and divorce lawyers, Loukas Law is dedicated to safeguarding your family’s rights and well-being. Our multidisciplinary approach integrates legal, financial, and psychological expertise to provide comprehensive support during this challenging time. To help you understand how we assist in the family court property settlement process, we’ve outlined the steps we take to ensure a fair and smooth division of assets:
Step 1: Identify and value assets
We’ll help you list all your assets and liabilities, including properties, bank accounts, investments, superannuation, and debts. Accurate valuations are crucial for a fair division, so we work with financial experts to ensure all assets are properly assessed. This comprehensive inventory provides a clear picture of what needs to be divided.
Step 2: Consider contributions
We assess both financial and non-financial contributions made by each party during the relationship. Financial contributions include income and savings, while non-financial contributions encompass homemaking and child-rearing efforts. Recognising the value of both types of contributions is essential for an equitable settlement. We gather detailed information to present a balanced view of each party’s input.
Step 3: Evaluate future needs
We consider each party’s future needs, such as age, health, earning capacity, and childcare responsibilities. This step ensures that the settlement supports the future well-being of both parties. We analyse various factors, including potential future expenses and financial stability, to ensure the agreement is sustainable and fair.
Step 4: Assess fairness and equity
We review everything comprehensively to ensure the proposed division is fair and equitable for both parties. This includes a detailed analysis of all factors and contributions, aiming for a settlement that reflects a balanced and just distribution of assets. Our goal is to achieve a resolution that both parties feel is reasonable.
Step 5: Mediation and negotiation
We facilitate mediation with a neutral mediator to help you discuss and negotiate the division of assets amicably. Mediation provides a platform for open communication, aiming to reach an agreement without court intervention. Our experienced mediators guide the discussion, helping both parties find common ground and resolve disputes constructively. At Loukas Law, we believe in working respectfully and cooperatively with all parties involved to ensure a smooth process and maintain trust.
Step 6: Seek professional guidance
Our team provides continuous legal, financial, and emotional support throughout the process. We offer comprehensive advice, addressing all aspects of the separation to ensure you have the guidance you need. From legal intricacies to financial planning and emotional support, we are with you every step of the way.
Step 7: Finalise the agreement
Once an agreement is reached, we help formalise any legal documents to make it binding and enforceable. We ensure that all terms are clearly defined and legally sound, protecting your interests and providing a solid foundation for your future. Our legal team meticulously reviews and drafts the necessary documents, ensuring compliance with all legal requirements.
Loukas Lawyers are here to help
For professional guidance and support during your separation or divorce, reach out to us at Loukas Law. Our team of dedicated family lawyers in Perth is here to help you navigate the complexities of the family court property settlement process and ensure a fair and just outcome. Contact us today to schedule a consultation and take the first step towards a more secure future.