Most property settlements are reached through negotiation, without the need to go to court. Negotiations are formally documented through a binding financial agreement or consent orders. As a last resort, parties may need to initiate court proceedings seeking court orders regarding the division of the parties’ property.
No matter how a property settlement is reached, it is important to be aware of the financial impact of the proposed agreement before it is finalised.
Our family law team will ensure a property settlement delivers an optimum financial outcome for you working with financial professionals (such as a financial advisers and/or accountants) where necessary. We explain some of the benefits of working collaboratively with financial professionals below.
Identifying and evaluating assets and liabilities
Assets can be held in various ways, whether through a trust, company or shares. A financial professional may help to properly identify, classify and evaluate your assets and liabilities, whether these are held jointly or individually a formal valuations of certain assets, such as business interests and company shares where necessary.
It is crucial that we obtain a full understanding of your asset portfolio to understand the impact of a potential property settlement on your finances. Only by obtaining a complete picture of your financial position can we negotiate a just and equitable property settlement.
Recommending tax-effective strategies
Understanding the tax implications of a proposed property settlement can have a significant impact on the net result for each party. The retention, transfer or division of different types of assets will have different stamp duty and tax consequences.
We will recommend strategies and structures for the division of your assets and liabilities, taking advantage of stamp duty concessions, tax exemptions or deferrals unique to family law property settlements. We will advise you where it will be more advantageous to retain one type of asset over another, depending on the stamp duty and tax consequences of disposing of different types of assets. We will also flag potential capital gains tax liabilities. We may recommend that you consult with financial professionals to ensure we have a clear picture of your options.
Advising on superannuation
If a superannuation split forms part of your proposed property division, then you will either end up with more or less in your superannuation account. This may require a reassessment and restructure of your retirement plans.
We will assist you to understand the net effect of a proposed superannuation split and where necessary, refer you to a financial professional who will assess your future needs and contributions towards superannuation and may suggest a restructure.
Assessing future needs and planning ahead
We may also refer you to a financial professional to develop strategies to assist you to get back on your feet financially after separation. This may include providing budgeting advice, asset management and protection advice, recommending appropriate income protection insurance, and developing plans to work towards your financial goals.
We will assist you to determine your child support entitlements and obligations, and implement an effective estate plan in consideration of your new personal and financial circumstances.
Conclusion
We will assist you to achieve a fair and reasonable property settlement and to manage your immediate and future financial needs. Where it will assist you, we will refer you to a financial professional.
This information is general only. If you or someone you know wants more information or needs help or advice, please call 08 8443 4888 or email [email protected].