Parties / Couples that have separated often reach an agreement as to how they intend to divide their matrimonial assets.
Whether they reach this agreement amicably between each other or with the assistance of lawyers, it is important to formalise any property settlement agreement.
In Australia, you may formalise your property settlement agreement by way of Consent Orders or Binding Financial Agreements.
At Buckley Lawyers, we strongly recommend that you formalise your property settlement for the following reasons:
Formalising your property settlement makes your agreement legally binding and enforceable.
This means that you and your former partner must comply with the agreement.
In the event that your partner fails to act in accordance with the agreement, you have legal mechanisms available to enforce the agreement.
Informal property settlement agreements are not legally binding and therefore you cannot compel your former partner to act in accordance with your agreement in the event that they choose not to do so.
Formalising your property settlement agreement provides finality that your property matter has come to an end.
It also provides you with certainty that your partner cannot make any future claims against you or your estate.
With this in mind, you have peace of mind knowing it is all over and can finally start the next chapter of your life without having to worry of whether your former partner will pop up again.
Formalising your property settlement also affords the parties tax benefits.
Most notably, you are exempt from paying stamp duty for the transfer of property.
This exemption applies irrespective of the number of properties you own or the value of these properties. It is often the case where the savings you make from the stamp duty exemption exceed the legal costs incurred to formalise your property settlement agreement.