Most people have usually mistaken divorce process and property settlement as the same processes. Under the Family Law Act, The division of family asset and divorce are two different processes. In a property settlement, the partners will settle matters on how they should divide their assets and liabilities. By way of consent order, binding financial agreement (BFA), or consent orders, they may finalize their property settlement 12 months from the date their divorce decree is granted.
It is always recommended for separating couples to arrive at an agreement regarding the division of assets and liabilities before reaching to the judge. In a property settlement partners can agree about how they would divide their real estate, pensions, and retirement funds including the details on who will provide for the other spouse and the kids.
Dividing the properties through property settlements basically ousts the court’s jurisdiction over the matter. However, in an event when the breakdown of marriage is caused by exceptional reasons, such as family violence, the judge may interfere in resolving the issue. The judge will also have the ultimate say in determining whether or not the agreement reached is 'just and equitable'.
Property settlement is very beneficial for couples whose marriage or de facto relationship is about to end or has come to an end. Especially it settling issues concerning parental responsibility and child support, property settlement will give couples a legal basis as to how the division of property should go about. Couples who have executed property settlement even before the wedding will no longer have to go through hassles of post-divorce agreement or property settlement.
Divorced couples who have successfully finalized a property settlement will also have a more systematic way of dividing properties. In as much as possible, it is still advisable for married couples who do not have children to reach a property settlement for the purpose of remarriage.
Oftentimes property settlement is very hard and exhaustive. Although it is regarded as a short term contract, its benefits can last for a life time. In order for partners to arrive at a fair division of properties, it is advisable for both to consult a lawyer who expertise in family matters.