When couples in Australia choose to split up, they often bypass the process of formally obtaining a property division consent order or avoid taking their property dispute to court. Some common reasons for this include:
Limited assets are divided, such as furniture or a single vehicle.
Asset transfer is minimal and each party keeps what they bring to the relationship.
Mutual understanding and co-operation in the division of assets without seeking specific stamp duty benefits or exemptions.
Implications of Skipping Property Orders If there is no property division order in place, either party can file for property division at any time, regardless of how much time has passed since the separation. Consider a case where a couple separated 30 years ago and jointly owned land in Sydney. The value of the land has increased significantly over the decades. Although the husband managed certain ongoing expenses, he did not significantly contribute to its appreciation. Upon sale, the proceeds were divided almost equally, adjusting for the expenses borne by the husband.
Post-divorce inheritance further complicates matters. If one party inherits a significant amount of assets after a breakup, it may not be divided evenly. However, this inheritance may affect how other shared assets are divided. If the inheritance was preceded by a property division agreement, the division may be more equitable.
The Role of Divorce in Property Division If you are considering dividing your assets without a clear order, it is vital that you hire a family lawyer. Complications can arise if you die without any decree, or even if you are not formally divorced, even if you have updated your will.
However, completing a divorce offers strategic advantages. Once a divorce is granted, there is a 12-month period to request property division or to seek permission from the court to divide property. Where couples have informally divided their assets, the court will not usually grant further permission for property division. Such permission will only be granted if shared assets remain, allowing both parties to complete their financial commitments.
Essentially, divorce can be a tool to solidify property division, especially when the costs associated with a formal property division order outweigh the benefits of the size of the assets involved. Always consider individual factors, such as the size of the asset pool and the financial independence of each party, before using this method.
Using Divorce for Property Division Using divorce can be a strategic move to confirm a prior property division without incurring additional costs. While individual circumstances vary, this approach can lead to favourable outcomes for many people. Always remember to carefully evaluate your individual situation.
The family law attorneys at Choi, Ching Wai & Associates can help you navigate the complexities involved in family law and provide the best legal advice you canclick hereStart your divorce petition. If you have any questions, you canContact Usfor initial help and guidance.
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