Dealing with property in a separation
“Property, particularly the family home, is generally the largest asset we will own in our lifetimes. It is no surprise then, that division of it due to separation or divorce requires significant understanding.”
When it comes to dealing with property in a separation, it’s vital to seek legal and financial advice. Below we outline 4 important considerations when it comes time for property division, selling or transferring a property. It cannot be under-estimated the financial savings or potential losses at stake.
There are a variety of ways for couples to divide property in a separation. Private agreements may be negotiated, mediation may be used, or the more traditional channels such as lawyer negotiations or the family court system are also a possibility. Each option varies in cost and the more one goes down the legal path, the more costly the process tends to become. To reach a fair and equitable agreement, it is advisable that both parties seek legal advice. However, it is also important to be aware that lawyers can complicate matters by trying to win a vulnerable person’s business. To keep costs down, there are straightforward and respectful ways to divide property without drawn out and expensive legal processes.
If an investment property forms part of the settlement, decisions need to be made as to who can maintain the investment. One party may have a preference to retain the property or sell the property and there may be questions as to where to invest the proceeds of a sale. It is vital that parties understand Capital Gains tax implications when retaining or selling an investment property and how this tax liability affects your settlement.
Once couples reach an agreement, it is imperative that it is made legally binding. There are many reasons why this is an important step, starting with stamp duty exemptions. These are available when spouses are transferring property in a separation/divorce and can amount to a fair sum. There are specifically two separation agreements that are required to be eligible for such exemption. One is a Binding Financial Agreement, and the other is by way of Financial Consent Orders.
Selling or transferring a property can be a complex process and this is where conveyancing services are required. If a property transfer is required, also known as a ‘spousal transfer,’ the conveyancer will use your separation agreement to apply for any stamp duty exemptions, that you may be eligible for.
At Simple Separation, we make the separation process simple, fair and stress-free. Simple Separation works with couples to manage each step from start to finish via one-on-one conversations and its online platform. This includes family law mediation, separation agreements, conveyancing, and estate planning to ensure a speedy and legal separation at a fraction of the cost of lengthy solicitor negotiations or court proceedings.
Simple Separation has partnered with a range of legal experts such as family lawyers, conveyancers, mortgage brokers and estate planners across Australia, including TICKBOX Conveyancing in Victoria. Nancy Gentile from TICKBOX Conveyancing points out that “working with Simple Separation streamlines the process and has allowed for a quicker transaction amongst amicable couples''. She says “Possible issues around title transfer, separate legal representatives, financial agreements, and registration with PEXA, can all cause headaches and delays, which is why the incorporation of a conveyancing partner has allowed Simple Separation to strengthen its product offering and commitment to a simple, straightforward legally binding separation. Simple Separation and TICKBOX work hand in hand, helping make transactions simpler and placing the client first always – getting you through your separation and onto your new life faster.
To find out more contact us at Simple Separation 1800 056 305 for a free 30 minutes consultation.