What Happens to Property, Debt and the Family Home After Divorce?

Deciding what will happen to property, debts and the family home is often one of the most challenging aspects of separation or divorce. Understanding how property settlements are determined under Australian family law can help you better understand your rights and the options available to you. In this guide, the team at O’Sullivan Davies explains how assets and liabilities are assessed, the factors the Court considers and what may happen to the family home following a relationship breakdown.

Reaching an Agreement About Property Division

It can be overwhelming trying to figure out what will happen with all of your assets and liabilities when you are going through a separation.

Parties can reach an agreement as to how their property should be to be divided at any time and might receive assistance from lawyers or an independent mediator when trying to reach an agreement about their property settlement.

When the Family Court Becomes Involved

If no agreement can be reached, it may be necessary for the Family Court to determine how the parties’ property should be divided.

When determining an application for property settlement orders, the Family Court may:

• consider all of the parties’ interests in property, including assets, liabilities and financial resources;
• consider the contributions of each party, including both financial and non-financial contributions; and
• consider any other relevant factors, such as the future earning capacity of each party, the care and support of children and the length of the relationship.

The final decision will mean the assets and liabilities are divided between the parties a way which is just and equitable.

This may require one party to retain the family home and pay the other party a cash sum, or it might require the family home to be sold so that the proceeds of sale can be divided.

Speak with an Experienced Property Settlement Lawyer

If you need advice about your property settlement or have questions about what may happen to your assets, debts or family home after separation, the team at O’Sullivan Davies can help. Contact our experienced property settlement lawyers today for practical advice and support tailored to your circumstances.