In a property settlement in a family dispute lodged before the family court, several issues should be addressed properly. While child support arrangement is one of the most important factors that need to be considered foremost in a property settlement, the law also requires that full disclosure of the present status of the properties of the family.
This will include all the assets that were acquired before and during the effectivity of the marriage contract as well as those liabilities and debts acquired thereto.
It is important for the parties to disclose to the court the liabilities and debts that the family incurred during the subsistence of the marital bond. Upon declaration of all the mortgages and debts that the family incurred, the court can issue a notice, order, and injunctions that will affect and bind third parties whom the Family has incurred their liabilities.
At the instance the court sent notice to third parties who have an interest over the property involved in the property settlement, they may file an appropriate pleading for their involvement over the case. It is important for Third Parties to be involved to protect their rights and interest over the Property that was mortgaged, leased, or any other legal transfer, whether partial or total, as the case may be.
For example, the family home of spouses A and B who has an existing case before the Family Court was mortgaged to Creditor C. The Court may issue a notice to Creditor C that the Property mortgaged to him is being subjected to a property settlement before its jurisdiction. Upon receipt of the said notice, Creditor C should get involved with the case to protect his interest over the property. Depending on the amount that was due to him, Creditor C may file for its foreclosure. However, the Court may issue an order or injunction that will prevent Creditor C from foreclosing the said property until the property settlement has been settled.
It is thus advisable for all the parties involved in a property settlement to disclose all the circumstances of the properties that are being made subject thereto. This will allow all parties involved to protect their respective rights as well as to pave way for the just and equitable distribution and arrangement of the properties.