Separation is a difficult period, and decisions about property often have to be made while much else remains unsettled. The question in front of most people is whether to accept a division that has been put to them, or to establish the full financial position first and judge any proposal against it. Property settlement services are the legal work of establishing that position, advising on it and recording what is agreed. Little can be assessed before the picture is complete, and assembling it is ordinarily the slower part of the exercise.
What property settlement services involve
Property settlement services are the legal work of dividing property, superannuation and debts after a marriage or a de facto relationship ends. The work covers identifying what each person owns and owes, obtaining valuations where they are needed, advising on how a division is approached, negotiating terms, and recording the result in a form that holds.
Much of that work takes place in correspondence and negotiation rather than in a courtroom. An accountant or a valuer is often involved as well, because some figures cannot be agreed without one. Property division sits within family law, and arrangements for children are a separate question, although many people deal with both at the same time.
Establishing the position before anything is signed
How an agreement is recorded, and what makes it binding on both people, is one of the first things to have explained. An informal understanding and a formalised agreement are different instruments, and the difference is best understood before money moves or a title is transferred. Whether payments and transfers made between separation and settlement need to be accounted for later is another question to put early rather than late.
There is seldom an advantage in agreeing to a figure that neither person has tested against the full picture. A division that is reached a few weeks later, with the documents in front of both people, is usually the sounder one.
Building a complete picture of what is owned and owed
Assets and liabilities have to be identified on both sides, wherever they happen to be held. A complete list ordinarily includes:
- real property, including a home registered in one name only
- bank accounts, shares and vehicles
- superannuation interests held by each person
- an interest in a business, company or partnership
- loans, credit cards, tax debts and guarantees
- property held through a trust, together with the trust deed
Inheritances, gifts and assets brought into the relationship belong on the list as well, with a note of when each one arrived. When and how an asset came in is one of the matters a lawyer will ask about, so the dates are worth recording while they are still easy to find.
Where a business, a trust or superannuation is involved
A business interest raises two practical questions: what the interest is worth, and whether the business can keep trading through and after a division. Answering the first usually calls for an accountant, while the second affects which outcomes either person can realistically accept. Where a company or a trust holds property, the constituent documents and the financial statements matter as much as the bank statements do, and locating them early avoids a delay later.
How superannuation interests are dealt with is a matter to raise at the outset rather than at the end, because the answer changes the shape of everything else on the list. The same applies to any interest whose value is uncertain, since a figure nobody has tested is a poor basis for an agreement.
Questions to put to a lawyer, and what to bring
A first discussion is more useful when it works through specific questions. The ones that carry the most weight at the start are these:
- how a division is approached in a matter of this kind, and what range of outcomes is realistic
- what each person is required to disclose about their financial position
- how superannuation interests can be dealt with
- what forms an agreement can take, and what makes one binding
- whether a time limit applies, and from what date it would run
- how fees are charged, and what the next stage involves
Documents assembled in advance make that conversation a shorter one. Recent statements for every account, loan and credit card are the starting point, together with the most recent superannuation statements for both people, a rates notice or recent appraisal for any property, and the last two years of tax returns. Where a business forms part of the picture, its financial statements matter as much as the personal ones. A short written timeline also helps: when the relationship began, when the two of you began living together, the date of separation, and any significant payment or transfer since.
Frequently asked questions about property settlement
A lawyer identifies what is owned and owed, advises on how a division is approached, negotiates terms with the other person or their lawyer, and prepares the documents that record the agreement. Where valuations are needed, the lawyer works with the accountant or valuer.
Recent statements for your accounts, loans and credit cards, superannuation statements for both people, and the last two years of tax returns. A short timeline of the relationship, including the date of separation, is also useful.
Legal costs depend on the nature, complexity and scope of the matter. We explain the applicable fee arrangements and provide costs information in accordance with our legal obligations before commencing substantive work.
Yes. The firm is based at Level 8, 256 Queen Street, Melbourne, and acts for clients throughout Victoria. All enquiries are handled in strict confidence.
Before agreeing to a proposed division
A useful first step is to write down everything, including the items you assume are not in play: the superannuation, the interest in the business, the loan from a parent, the account in one name. A proposal can only be measured against a complete list, and the items left off it are the ones most likely to change the figure. Where a document has been put in front of you, it can be read and checked before it is signed.
Mazzeo Lawyers is a Melbourne litigation practice serving clients throughout Australia, with family law among its six practice areas. Nick Mazzeo, the Principal, began practising law in 1994, and both he and the firm are members of the Law Institute of Victoria. The firm acts in matters before courts including the Federal Circuit and Family Court of Australia. Every matter the firm acts in receives the time and personal attention of an experienced lawyer.
If you would like the position explained before responding to a proposed division, you can contact the firm to arrange a time. An initial conversation does not commit you to anything. Arrange a confidential discussion about your matter.
