Going through a separation or divorce is challenging, but agreeing on how to divide your assets brings further complexity to the situation. Even if you approach the division of property amicably, it’s common for negotiations to get railroaded when discussing the intricacies of who owns what and how each party contributed. If you’re trying to work out a fair property settlement without stressful and expensive courtroom battles, mediation can offer a constructive way to reach a fair and workable arrangement.
What is a family law property settlement?
A property settlement involves dividing assets, financial resources, and debts between a couple whose relationship has ended. It legally finalises their financial affairs and enables them to move on with their respective financial lives.
Australian family law requires that a property settlement be just and equitable. This goes beyond the legal ownership of assets and monetary contributions. It considers all aspects of the relationship, including each person’s non-financial contributions (caring for children, household duties and emotional support), as well as their future needs. Using this framework as a guide, mediation empowers you to shape the outcome based on your specific circumstances.
What is included in a property settlement?
Property includes a range of assets and financial resources – real estate, bank accounts, cash, shares and investments, motor vehicles, business and company interests, trusts, and superannuation. Liabilities such as mortgages, loans, credit cards and other debts should also be considered.
What is mediation?
Mediation is a voluntary and confidential process where a neutral third party, the mediator, helps separating couples communicate and negotiate to reach an agreement. The mediator doesn’t make decisions for you; instead, they facilitate discussions, explore options, and guide you toward a resolution that works for you and your former partner. Mediation can be extremely effective if both parties are willing to make genuine attempts to resolve their dispute.
What are the benefits of mediation?
In addition to the potential cost savings, the benefits of mediation include:
- Flexibility – unlike court proceedings, a mediation can be set up at a time, date and location agreeable to all parties.
- Quicker resolution – while going to court may be necessary in some cases, matters that proceed to trial can take several months or years before a final hearing. A successful mediation can significantly reduce this time, allowing you to get on with your respective financial lives sooner.
- Less formal – mediation is less formal and therefore less daunting than court proceedings. Without the confines of court formalities, you can explore more flexible ways to resolve your issues.
- Opportunity to preserve relationships – court proceedings are confrontational and can exacerbate relations that are already strained. Mediation can facilitate improved communication and help separated couples preserve their relationship or at least conclude with mutual respect.
What happens when an agreement is reached?
A mediated agreement can be formalised through a Financial Agreement (also known as a Binding Financial Agreement) or Consent Orders.
What if mediation is unsuccessful?
If mediation does not result in an agreement, other dispute resolution methods can be explored, or you can apply to the court for a decision. Even if mediation does not resolve a dispute entirely, it can still help by narrowing down the issues between the parties, allowing a more focused approach to identify and resolve the actual problems.
How can we help?
Through mediation, we can help you explore options to achieve a fair property settlement, regain control of your life, and avoid the stress and uncertainty of court proceedings.
Kathleen Dare is an experienced lawyer and a nationally Accredited Family Dispute Resolution Practitioner and Mediator. Having managed many family law matters and seeing first-hand the negative impact that court proceedings can have, Kathleen is passionate about helping clients resolve their issues through a cost-effective and less confrontational alternative.
We provide a supportive and professional environment to help you navigate the complexities of property settlements. If you need assistance, email [email protected] or call 0421 828 036.