43.48% of Australian couples end up getting divorced, and one of the major issues besides the mental side of things are property disputes that occur between the former couple. We have provided you with 3 examples to help you get an idea of what actually happens in a property settlement. If you have any queries regarding your case after reading three examples, please feel free to reach out to us.
Case 1: Mr Field And Mrs Basson
Mr Field, aged 58 married to Mrs Basson, aged 57, got married In the year 1984 and got separated in 2009.
Assets Currently Present With the Couple:
1 . 6 Properties (5 On Mrs Basson’s Name and 1 on Mr Field)
2. 2 Cars (1 On Mrs Basson’s name and the other on Mr Fields)
4. Superannuation of $2000 in the name of Mr Field.
5. A business that the two of them started together, but got shut down in 2011.
In March 2012, the Federal Magistrate gave orders for a property settlement. All the assets and liabilities of the couple were calculated. Their assets included the business, their debts (Mortgage) and all the properties that the two of them owned. The Magistrate also took into consideration the contribution the two of them had financially and non-financially. Besides these, the amount the two of them earned were also taken into account.
After reading and analysing all the papers, the Federal Magistrate decided that Mrs Basson should receive 87.5% of the net assets with the remaining going to the Mr Field. Since Mrs Basson did not want to sell any of her properties, the Judge decided that the business stocks and 1 of the vehicles (Jeep) should be transferred to Mr Field while Mrs Basson would retain her property and her debt.
Case 2: Sam And Joanne
Sam And Joanne had been married for 5 years and got divorced on the 2nd of August 2017.
Assets Currently Present With The Couple
1 Property (Marital home) worth 1,000,000 which also had a mortgage of 800,000. Therefore, the total value is 1,800,000.
2. A Ford Falcon car that was worth $20,000.
3. Joanne’s Superannuation, worth 10,000
4. Sam’s Superannuation, Worth $30,000
The Federal Magistrate Gave orders for a property settlement in November 2019. All the assets and liabilities present with the couple were calculated. The two of them held a property, a car and superannuation. The contribution the two of them had financially or non-financially were also taken into consideration by the Magistrate.
After thinking about it, the Federal Magistrate declared that Joanne would get 70% of the Net Assets while Sam would get 30% of it. The percentages were based on their contribution and future needs. To divide their assets into equal proportions, it was decided that Joanne would keep the car while both of them got to keep their superannuation. The Magistrate said that Sam would have to refinance the home and pay Joanne a sum of money to buy out her share.
Case 3: Josh And Katie Stewart
Josh and Katie had been married for 15 years before their divorce in April 2015.
Assets Present With The Couple
1. 2 Properties worth 1.4 Million and 815,000 each. For reference, we are going to name these properties P and N, respectively.
Mrs Katie sought an order that Josh would pay her a sum of money and in case if he did not, that she would be appointed as the trustee to sell house P. Mr Josh sought an order he was to be declared the sole owner of house P and would buy Katie’s share of the house. Josh also wanted Katie to pay him a sum of money, and if she failed to do so, Josh would be allowed to sell house N.
In June 2018, the Magistrate learned that Katie did not have the funds available to pay for the ongoing proceeding. It was later decided that house N would be sold. They later formalised that Katie was allowed to sell Property N.
Their results were announced, taking into consideration the financial and non-financial contribution the two of them had.
Divorce Property Settlement Guidelines.
Here is a list of things you should do to get the best possible property settlement.
- Make a list of all the assets, liabilities and debts that were accumulated during the marriage.
- It is essential to inform your former partner in case you decide to sell a property.
- Consider other alternatives before going to court. This will make it faster and cheaper.
- Mediation: A professional will guide you with the communication process; if you and your former partner agree on a settlement, it can late be formalised.
- Arbitration: Arbitration is very similar to a court. In this process, you will be required to have an arbitrator as the arbitral award is registered with the court when both the parties can come to an agreement.
- In case it is decided that you have to sell a property, it is best to hire a real estate lawyer to help you get the best price possible for the property.
There are also a few things that you should not do during this procedure;
- It would help if you did not ask for a property settlement for the last minute.
- NEVER try to hide a property or an asset. Doing this will reflect poorly on you and can affect the outcome of the property settlement.
Why Choose Aries?
Going through a divorce can be painful and heart-breaking. The situation brings enough stress as it is with complications like child custody and property/financial division. Emotions may get the best of you at times like these.
Our lawyers at Aries will guide you through the intensive procedures of a property settlement or any other family situations that need to be settled at court.