Separation can bring a number of immediate decisions into focus. Your property settlement may not be the first of them.
You may have made some financial arrangements with your former partner, divided certain assets or left things as they are while other matters took priority. But separation itself does not finalise your financial relationship, and divorce is a separate process from resolving property matters.
If your property settlement remains unresolved, it is worth establishing where things stand. What has already been dealt with? What remains outstanding? Are there time limits that need to be considered?
Getting advice at this point can help establish what requires attention and the options available for bringing your financial relationship to a conclusion.
Is there a time limit for property settlement after separation?
The time limits for property settlement depend on whether you were married or in a de facto relationship.
If you were married, the general time limit for applying to the Court is 12 months after your divorce becomes final. The clock does not start simply because you have separated, and property matters can be resolved before a divorce is finalised.
For de facto relationships, the general time limit is two years from the breakdown of the relationship.
If a relevant time limit has passed, it may still be possible to make an application, but permission from the Court will be required.
The important point is that separation, divorce and property settlement are distinct legal processes. Where a property settlement remains unresolved, knowing which stage you are at can help determine what requires attention and when.
What can change while your property settlement remains unresolved?
Your financial circumstances can continue to evolve while property matters remain unresolved.
The value of property may change. Assets may be sold or acquired. Liabilities can increase or reduce. Superannuation, business interests and other financial structures may also look different by the time a settlement is being considered.
This is one reason a property settlement should be considered in the context of your current financial position, rather than simply looking at what existed on the day you separated.
For people with businesses, companies, trusts or more complex financial interests, establishing the financial picture may require closer consideration. The passage of time can add another layer to that process.
What if you have already reached an agreement?
You and your former partner may have already agreed on how some or all of your property will be divided. Reaching an agreement is significant, but how that agreement is documented also matters.
Depending on the circumstances, a property settlement can be formalised through consent orders or a financial agreement. These are different legal mechanisms, and the appropriate option will depend on the agreement reached and your circumstances.
An informal agreement may reflect what you both intended at the time, but it may not provide the same legal finality as a properly formalised settlement.
Before treating your property matters as resolved, it is worth considering whether the agreement actually brings the financial relationship to a legal conclusion.
What should you do if your property settlement is still unresolved?
The starting point is to establish where your financial position stands now.
That means looking at what has already been agreed or dealt with, what remains unresolved and whether any relevant time limits apply. It may also involve identifying the assets, liabilities, superannuation and financial interests that need to be considered.
For some matters, the financial picture will be relatively straightforward. Others may involve businesses, companies, trusts, investments or other interests that require closer examination.
Bringing your property settlement to a conclusion.
An unresolved property settlement can leave part of your financial relationship open, even when other aspects of your separation have moved forward.
At Patterson & Co, we look at where your property matter stands now, what remains unresolved and what is required to bring it to a conclusion.
If your property settlement is yet to be finalised, we can advise you on the appropriate next step.
Get the guidance you need to navigate your property settlement with confidence. Contact our team.
