About Property Settlement Agreement During Divorce Process

June 6, 2024    Civillawyers
About Property Settlement Agreement During Divorce Process

When left to make their own decisions, people sometimes have hilarious ways of dividing their properties and coming up with property settlement agreements at the end of a marriage. Ironically, they often are so particular about dividing the materialistic assets that they miss out on the important ones like daycare expenses for their kids.

Several major factors should be considered when you are separating from your spouse and attempting property settlement. The Western Australian Government considers all the liabilities and assets of a couple as property irrespective of who owns it or who purchased it. So, even if you and your former spouse are on friendly terms and do not plan to go to court, you will need a legal expert in family law by your side.

This comprehensive guide will help you understand all about Property Settlement Agreements, as well as the legal and financial implications of these agreements. It will also help you understand the nature of the function and the process of drafting the agreement before a separation.

Understanding Property Settlement Agreement –

Often referred to as a Marital Settlement Agreement or Divorce Settlement Agreement, a property settlement agreement is a written contract between two parties who are going through the divorce process. This agreement covers all the financial obligations, including assets and debts. It further addresses child support, alimony, and custody arrangements, if applicable.

The chief concern of this agreement is to provide a clear and detailed legally binding resolution to the financial side of the divorce. When signed by both parties and approved by the court, it forms a legally enforceable contract.

Elements of Property Settlement Agreement

A property settlement agreement should address the following major elements to avoid conflicts in future:

1. Estate Division

The distribution of real estate includes the marital home of the couple and other real estate they own. The agreement should clearly mention who shall retain the ownership or how the property will be sold and the amount distributed.

2. Personal Property

The personal property comprises the distribution of the entire personal belongings like cars, furniture, jewellery and all other household assets,

3. Financial Accounts

The draft should clearly mention the details of how bank accounts, retirement money and investment portfolios are to be divided.

4. Allocation of Debt

The agreement must clearly mention who will be responsible for marital debts, including mortgages, car loans, and credit card debts.

5. Alimony or Spousal Support

In case one spouse is to provide financial support to the other, the terms, the tenure and amount of this support should be accurately mentioned.

6. Child Support and Custody

In case children are involved, the agreement should clearly detail the arrangement of custody, schedules for visitation and payments for child support.

7. Tax Considerations

The agreement should mention the tax implications that will arise from the division of property, support payments or arrangements of custody.

Property Settlement Agreement Drafting Guide Considering Elements

Drafting a detailed property settlement agreement addresses the following essential elements:

  • Both the spouses must compile a detailed list of all assets and debts. You might need professional valuations for certain assets.
  • The parties, with their Property Settlement lawyers Perth will negotiate the terms of the settlement. This involves deciding who gets what and what responsibilities regarding the clearing of debts.
  • When the terms are agreed upon, the property settlement agreement lawyer will draft the agreement to mention these terms clearly and concisely.
  • After the completion of the draft, both parties must thoroughly review the agreement with their respective lawyers. After addressing concerns, the document is to be signed.
  • Obtaining approval from the court can enforce the agreement and prevent future conflicts, Moreover, it’s not compulsory.

Summing Up!

In summary, it is important to know that property settlement agreements are essential for a proper division of assets during a divorce. However, the Property Settlement Process is complex and needs the engagement of a property settlement agreement lawyer in Perth who can guide you through the entire process of the agreement.

These legal experts understand the valuation of assets and debt assessment and have in-depth knowledge of state laws. They can aid you in negotiation, resulting in fair settlements in your best interest.

No matter how your case ends, whether by trial or proper settlement agreement, the property settlement agreement lawyers in Perth are well-equipped to handle it at their best.

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