A year ago there were half as many divorce cases as there were marriages. Of the marriages, more than one third required a remarriage for one or both partners. While marriage seems to be out of trend, chances are that the statistics for de facto relationships are just as bleak.
Under present regulation, if a relationship has lasted for at least three years, the two main parties have equal protection under the law to the property unless they’ve already previously entered into a contracting out agreement for the division of property.
It is easier to make good decisions approximately your money when some time provides elapsed and emotions have got settled. Depending on the complexity of your affairs it can take several months or simply years to reach a final pay out of your financial affairs, especially if one party is unco-operative. Don’t forget to update your definitely will as a separation or divorce does not override its items.
Choosing which assets to keep and sell and how to separate the retained assets needs careful consideration. Living costs will be higher after a separation, so before you commit to taking on all the family home and mortgage, prepare a new budget.
Gifts, personal elements such as jewellery or fashion, and inheritances that have not been mingled with additional property should not be included upon your list as these are not really usually considered to be relationship property. For some assets, such as the home or business or specialized items such as artwork or simply antique furniture you may need to fork out an independent expert to provide some valuation.
While it may just be good for the children to stay in any family home, it may be unaffordable. Do not in a rush to cash ” up ” insurance policies or investments not having checking on how much you will lose by way of accumulated bonuses and also withdrawal fees.
There will also be penalties associated with early fulfillment of debt (eg mortgages and personal loans). Once you have agreed who will own which assets, make sure the property transfers for your major assets are completed properly by way of notifying the relevant police or in writing.
Separation and divorce are actually traumatic and highly psychological and mental events but somehow, realistic issues such as what happens with the kids, the house and the revenue need to be sorted out. If you in the process of separating and also contemplating separation there are some actions you can take that will make sorting away your financial affairs less complicated.
To avoid reasons about dividing bank account proceeds, you should keep an accurate track record of all financial transactions following your separation date and until such time as a settlement is agreed. If you choose to take a cash payment through the partner as part of your settlement, input it into a short term deposit whenever you consider your options.
The starting point is to make a list of everything you own and everything you owe as for the date of separation. The assets should be valued in what they are worth at the date of separation, not what they were purchased for.
Joint bank accounts and credit cards is a source of trouble, particularly if the split is acrimonious. Generally, if your bank is made aware of the separation, it will stop joint accounts until an agreement is reached. This tends to prevent one partner whether absconding with the bank account takings or running up big credit card debts.
Similarly, your debts should be valued in terms of the current balance left to pay. Your list should include the value of insurance policies, investment strategies, superannuation schemes and firms owned as well as your house and contents, vehicles and lender accounts.
For some people, heading to a new relationship might be the vital thing on their minds, for other folks it is the last thing. Whatever the case, have some legal advice on how to best protect your now halved assets in future associations, otherwise you may find them getting halved again!