It is extremely important to ensure that you arrange for proper and binding arrangements to be put in place for the division of property after the breakdown of a relationship and a divorce for the following reasons:-
Get what you are entitled to
Too often, people settle upon a division of assets which is not fair or equitable, mainly because they are ill informed or feel pressured into doing so. How many times have we heard that a person is entitled to 50% once they married or in a de facto relationship? That position is wrong. A person’s entitlement is based on their contributions and their future needs. Ensure that you get proper advice about your and your former partner’s entitlements before a final decision is made.
If documented correctly, an agreement for the division of assets is binding and therefore final. Unless you achieve finality you will always be a target for future claims and/or litigation. You don’t want to have to pay out a settlement twice. Finality is achieved by entering into a Binding Financial Agreement as prescribed by the Family Law Act, or by registering your agreement with the court by completing and filing an Application for Consent Orders the result of which will be that court orders are made in the terms of the agreement signed by you.
Avoid unwanted costs
With most transfers of assets or rearrangement of ownership of assets, stamp duty and tax is payable. You can avoid most of these costs if the agreement is structured in a tax effective manner so that rollover or other tax relief is available, or if the transfers etc are made pursuant to a Binding Financial Agreement or Consent Orders. The cost savings can be considerable.
Tax and Estate Planning
These asset rearrangements can sometimes allow you an opportunity to restructure your affairs into a better and more tax effective regime. You can also consider some better estate planning options. All of this can, in most cases occur in a very cost effective environment where no tax or stamp duty is payable
If an agreement can be reached with your former partner, the costs of court and the uncertainty associated with court decisions will be avoided. You will have certainty, clarity and an agreement that you have made (and not had forced on you) which you can live with.
How do you do all of this?
Engage the services of a Cairns Family Lawyer with the appropriate experience to ensure the job is done right.
Contact Eddy Lago Cairns Family Lawyer on 40461111