Not too long ago there were half as many divorces as there were marriages. Of the marriages, more than one third involved a remarriage for one or simply both partners. While marriage seems to be out of fashion, chances are that the statistics to get de facto relationships are as bleak.
Under present legal requirements, if a relationship has survived for at least three years, the 2 main parties have equal liberties to the property unless they’ve already previously entered into a contracting out agreement for the division of property.
It is quicker to make good decisions about your money when some time has elapsed and emotions have got settled. Depending on the complexity of your affairs it can take several months and even years to reach a final settlement 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 contents.
Separation and divorce are actually traumatic and highly sentimental events but somehow, practical issues such as what happens to the kids, the house and the revenue need to be sorted out. If you happen to in the process of separating and contemplating separation there are some things you can do that will make sorting out your financial affairs much simpler.
To avoid fights about dividing bank account carries on, you should keep an accurate track record of all financial transactions following separation date and until a settlement is agreed. If you choose to take a cash payment through the partner as part of your settlement, indicated into a short term deposit because you consider your options.
Gifts, personal merchandise such as jewellery or clothing, and inheritances that have certainly not been mingled with other property should not be included within your list as these are certainly not usually considered to be relationship property or home. For some assets, such as your home or business or specialized items such as artwork or simply antique furniture you may need to pay for an independent expert to provide your valuation.
Similarly, your debts should be sought after in terms of the current balance positioned to pay. Your list includes the value of insurance policies, investment strategies, superannuation schemes and small businesses owned as well as your house and contents, vehicles and loan provider accounts.
Joint bank accounts and credit cards might be a source of trouble, particularly if that split is acrimonious. Generally, if your bank is made aware of the separation, it will frost nova joint accounts until an agreement is reached. This tends to prevent one partner possibly absconding with the bank account takings or running up enormous credit card debts.
There might also be penalties associated with early refund of debt (eg house loans and personal loans). Car agreed who will own which inturn assets, make sure the control transfers for your major possessions are completed properly just by notifying the relevant experts or in writing.
Determining which assets to keep or simply sell and how to separate the retained assets requires careful consideration. Living costs are higher after a separation, as a result before you commit to taking on any family home and mortgage, prepare a new budget.
The starting point is to make a list of everything you own and everything you owe as with the date of separation. The assets should be valued by what they are worth with the date of separation, not really what they were purchased for.
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 with no checking on how much you will drop by way of accumulated bonuses or withdrawal fees.
For some people, heading in a new relationship might be the first thing on their minds, for some it is the last thing. Whatever the case, find some good legal advice on how to best protect your now halved assets in future relationships, otherwise you may find them getting halved again!