If you are going through a separation, and own property together (whether you are married or a de facto couple), you will need to decide on separating property between you. Before you are able to reach an agreement with separating property you have, it's important to have reasonable expectations. Expectations of life after separation and what life is really going to be like for you, sometimes don't meet up, so it is important to take a realistic approach.
Here are 10 things to think about when separating property:
| 1 | What are the assets and debts that you and your ex have
together? One of the hardest things to do is figure out exactly what there is to split up in the first place. Regardless of whose name they are in, write out all of the assets (including superannuation) and all of the debts that you have between you. This will help define what you actually need to make decisions about. |
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| 2 | Do you have children? Who will they live with on a
primary basis? This is a huge factor in determining who gets what out of the property that exists between you and your former partner. If it is not something that you have considered, or if you haven't been able to agree on this issue, its best to see a lawyer about what options are available to you. |
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| 3 | Do you work? Is this on a full time bases or a part
time basis? Again, this is a very important factor when considering who gets what out of the property. You need to consider what your current financial situation is and what needs to be done to meet your future financial needs. |
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| 4 | If you have a house , should you sell, or will one of
you keep it? This is an important question to ask, as the answer can have a huge impact on the way forward for both you and your former partner. |
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| 5 | If you want to keep the house, can you afford
to? You need to be realistic about whether or not servicing these payments is something you can actually afford to do. |
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| 6 | Do you have the borrowing capacity to pay out your ex
and take over the mortgage? Will the bank lend you the money you need to meet your expectations? Talk to your bank or a mortgage broker to find out what you are able to do from a financial point of view. Its important that you do this early on as it will determine what you expect to happen during a property settlement. |
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| 7 | If you can't afford your current home, can you
afford to buy another? If you can't afford to pay the current mortgage and buy out the other person, could you afford to buy another property instead? After the family law property settlement see if you can afford a less expensive home. Think outside the box of what you already have and think about what you want in the future. |
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| 8 | If you can't afford your current home, can you
afford to buy another? If you can't afford to pay the current mortgage and buy out the other person, could you afford to buy another property instead? After the family law property settlement see if you can afford a less expensive home. Think outside the box of what you already have and think about what you want in the future. |
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| 9 | Do you have a lot of Superannuation? is there enough
for your future? Superannuation often gets overlooked, but it is incredibly important to think about what you have now, and how much you can accumulate in the future. This is especially important if you haven't been working on a full time basis, or if you are close to retirement. |
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| 10 | Are there tax or grant implications that you need to
consider? Many people don't realise there are tax and financial implications with separation, these implications can change depending on what you are planning to do with the property. Speak with a lawyer first about what you are seeking, and then to an accountant or financial planner. They can tell you the extent of any tax or financial implications you need to consider. |
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What next?
After you have taken the time to consider these things and what you want for the future, it is important to speak to a lawyer about the best way to move forward. It's very important that a formal family law property settlement is done to protect you both in the future.
To make an appointment to discuss your separation and these issues, contact us today. We can help you plan how to move past these issues and onto the next exciting chapter of your life.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
