Going through a divorce can be an emotional and complex process, often complicated by the need to divide the assets you’ve built up during your marriage. The goal is to ensure that this division is fair, and there are several ways you can work towards this, even if the path seems a bit daunting at first.
Understand the Basics
Before diving into the process, it’s helpful to know how asset division generally works. In Australia, the Family Court applies principles of fairness and equity rather than strictly dividing assets down the middle. The court looks at several factors, including the length of the marriage, contributions by each party (both financial and non-financial), and the future needs of each party.
Step 1: Identify and Value Your Assets
Start by listing all jointly and individually owned assets. These could include your home, cars, bank accounts, investments, superannuation (similar to a pension fund), and even valuable personal items. Don’t forget debts, as they also need to be divided.
While you might manage some valuations yourself—like checking bank statements for account balances—others, such as properties, may need professional valuation. Accurate valuations are critical; they lay the groundwork for a fair division.
Step 2: Consider Contributions
The court considers what each person has contributed to the marriage or relationship. This doesn’t just mean financial contributions, like income or inheritance. Non-financial contributions matter, too. For instance, if one partner took on the role of homemaker or primary caregiver to children, the court recognizes this.
If you feel your non-financial contributions are significant, prepare to provide evidence or testimony about your role and efforts. Whether you handled housework, managed day-to-day affairs, or supported your partner’s career, make sure these efforts are documented and visible.
Step 3: Assess Future Needs
Not all contributions are tangible, and future needs also play a crucial role in asset division. Consider factors such as age, health, earning capacity, and who will have primary care of the children. If one partner is likely to have a lower earning capacity due to age, health, or childcare responsibilities, the court might offer them a larger share of the assets.
Step 4: Try Mediation
Before heading to court, mediation offers a less adversarial approach to asset division. A neutral mediator helps both parties negotiate and reach a mutually agreeable solution. This process can save time, reduce stress, and allow both parties more control over the final outcome compared to a court ruling.
Mediation encourages collaboration and communication, offering a platform for both partners to voice their needs and concerns. Coming to an agreement through mediation is not only faster but often less expensive than a court battle.
Step 5: Legal Guidance
While self-representation is an option, having a lawyer can provide clarity. Legal professionals help navigate the process, ensuring you understand your rights and obligations. They can also offer perspective on what the court might deem fair, based on similar cases and their professional experience.
Choosing a lawyer skilled in family law can make a significant difference. They’ll guide you through specific legalities, draft and review agreements, and, if necessary, represent you in court.
Step 6: Formalize Your Agreement
Once you reach an agreement, formalize it to ensure it’s legally binding. In Australia, you can create a Binding Financial Agreement (BFA) that both parties sign, or ask the court to approve your agreement through a consent order. These steps protect against future disputes and ensure both parties adhere to the agreed terms.
Final Thought
Aim to approach the asset division process as a way to achieve a fresh start. While emotions may run high, maintaining a focus on fairness, preparation, and open communication can make the process smoother. Remember, every situation is unique, and while this guide provides a foundation, seeking personalized advice that considers all individual circumstances is always wise.
