Reaching a financial agreement with your ex on how to split your matrimonial assets and liabilities is a great first step in moving forward post-separation.
But is it that simple? There are many things to consider when reaching an agreement, including jointly owned real estate, superannuation, shares and loans.
An informal document written down and signed by the parties is not binding and will not prevent a later request for further property adjustment.
Not formalising your agreement correctly can have other unintended outcomes.
You may continue to live separated under the same roof, or to work in the same business.
But with time, the value of assets will fluctuate and human nature is such that each party usually perceives their contribution to preserving assets post-separation differently.
You can formalise your agreement by entering into a correctly drafted financial agreement complying with the Family Law Act, or you apply to the Family Court for Court orders made in the terms you have agreed.
People can and do change their minds over time. Formalising your agreement will provide you with peace of mind and certainty with your financial position moving forward.
Liz Catton, Director, Accredited Family Law Specialist, Catton & Tondelstrand Lawyers, Kon-Tiki Business Centre Tower 1, Level 3, Suite 315, 55 Plaza Parade, Maroochydore, 5609 4933, ctlawyers.com.au.
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