If you’re navigating the choppy waters of a separation or divorce and are about to embark on your property settlement, you may be feeling overwhelmed about where to begin. Depending on the length of your relationship, the assets you’ve accumulated, as well as the emotional tension involved, the process can be complex. It’s important to keep your focus, remove emotions from the process, and seek professional help. These property settlement tips will help guide you through this challenging time.

The burning question is: who should you turn to for assistance with your property settlement? For many, the go-to answer is a lawyer. However, if you’re dealing with financial matters and are somewhat amicable with your ex, a smarter choice may be to engage a specialist separation accountant. They can provide solution-driven advice tailored to your financial separation, helping you navigate the distribution of assets and negotiate a property settlement in the best possible way.

A specialist separation accountant has a complete understanding of a client’s financial position, including all assets and liabilities that make up the property pool, such as real estate and superannuation. They can provide practical advice on how to think forward in relation to assets and liabilities, work through borrowing capacities for future property purchases, and explore options to fund the  childrens’ expenses.

If you have a family business, the financial settlement can be even more convoluted. A separation accountant can offer a transparent understanding of the business structure and how to value the business in the property split. They can also guide you through the tax implications in a property split and the role of superannuation in your separation. 

Here are some property settlement tips to ensure a successful and fair division of assets:

  1. Understand Your Financial Position: This includes all assets and liabilities such as real estate, credit cards, and superannuation.
  2. Think Forward: Consider future needs and how your assets and liabilities can meet them.
  3. Are there other factors to be taken into consideration, for example: inheritances, compensation payouts, contributions, length of the relationship and future earning capacities etc.
  4. Determine Borrowing Capacities: This will help in deciding how to allocate cash and super between the parties for future property purchases.
  5. Plan for Children’s Expenses: Consider costs such as school fees, extracurricular activities, orthodontist fees, school trip expenses, and vehicles.
  6. Consider Your Business: If you own a business together, understand the business structure and how to value it in the property split.
  7. Understand Tax Implications: Ensure that potential tax implications are considered in the split of assets and liabilities.
  8. Consider Superannuation: Understand how super fits into your separation and how it can be beneficial to both parties.

Remember, if you are married you have 12 months from the date of divorce to apply for a legally binding property settlement, whereas De Facto couples have 2 years from the date of separation.It’s crucial to provide all information promptly for a smooth process.

CONTACT US

Here at Divide, we are Chartered Accountants who specialise in property settlement and have extensive knowledge that will be of benefit to any separating couple. We also take pride in working with both parties to create a “team” environment for a fast, solution-driven, more peaceful settlement. Book a free chat with us to discuss your personal situation.

Posted by Belinda Eldridge
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