It’s important to learn how to protect assets from divorce Australia in property settlement. The Family Law Act provides various ways to legally divide property for divorcing couples and people in a de facto relationship breakdown. Understanding how to approach them will ensure you can develop effective asset protection strategies.
Key takeaways
- Financial records enable the court to determine contributions and ensure proper disclosure.
- Injunctions prevent asset depletion.
- Separate bank accounts help clarify contributions.
- Binding financial agreements provide advantages for protecting assets.
- Expert legal advice will help organise settlements properly.
Tips for protecting assets in a divorce
Regardless of how you choose to handle your financial arrangements, there are basic steps you can take to help you maintain your marital property claims during a property settlement.
Keep records of financial matters
Maintain clear records of your assets. This means keeping track of which assets were brought by you into the relationship and what assets you purchased during the relationship. This makes it easier for the Federal Circuit and Family Court to assess direct financial contributions and non-financial contributions when making a property order.
Assets in a property pool may include:
- Business assets.
- Real estate holdings.
- Superannuation fund.
- Joint debts.
- Bank accounts.
- Stock portfolios.
- Family Trusts.
Clear records also enable you to identify inappropriate behaviour by the other party when providing full and frank disclosure. This includes attempts to hide or deplete assets.
Injunctions
If you’re concerned that your former partner will attempt to dispose of marital assets against your wishes, you can apply for an urgent injunction. An injunction disallows a party from taking a defined action, such as particular financial transactions. They can prevent a person from draining a bank account or selling off the asset pool.
Maintain separate bank accounts
Separate bank accounts can make it easier to organise finances after a separation. It’s important to note that separate accounts won’t preclude those funds from being part of property proceedings. However, they can make it easier to demonstrate your direct and indirect financial contributions.
Many couples have a joint account during a marriage, which is perfectly fine. However, in the wake of a separation, it’s worth separating those finances.
Binding financial agreements
If you have significant financial resources, a binding financial agreement (BFA) can be a great option. You’ll need to obtain independent legal advice to make the agreement enforceable. BFAs offer certain benefits.
Flexible timing
You can enter a BFA at any time. Rather than waiting until after a separation, you can make arrangements during the relationship. This is sometimes referred to as a prenuptial agreement. This gives you the opportunity to form an agreement early and make negotiations easier.
Flexible negotiations
BFAs don’t require court intervention. For this reason, parties aren’t beholden to the Court’s four-step process. You can develop any terms you’re both willing to agree to, as long as each person obtains legal advice.
Find legal support
Seek legal advice to help you with your case. If you have complex finances, such as business interests, an experienced family lawyer can help organise legal documents and achieve your financial independence. They should also have a professional network, including financial advisers, to assist with a divorce settlement.
From our clients
I cold called Andrews Family Lawyers because they were a local firm and I can highly recommend them! Peter and Lisa provide personalised professional legal services. They were very easy to deal with and they keep you up to date with where processes were at and achieved the desired outcomes in a timely manner. They always returned phone calls in a timely manner. I can't recommend them enough!!
- Bronwyn Stevens
We’ve been helping clients secure their financial future for more than ten years. We can track down hidden assets and protect your retirement savings. Our team ensures that you are kept fully informed about the case and are satisfied with the outcome.
Conclusion
In divorce proceedings, it’s important to protect your financial security. Our tips can make sure that the divorce process doesn’t threaten the assets you’ve worked for. Good preparation and appropriate legal avenues are crucial. Your financial stability is our priority.
