If you have recently separated, one of the concerns you will probably have is the size of your legal bill after your property matters are sorted.
Below are our top tips for keeping your family law property costs down without skimping on sound legal advice.
Tip 1 – do some groundwork yourself
A specific process is used when negotiating a property settlement. The first step is to identify the parties’ assets, liabilities and financial resources. This information is critical to determine the division of your property.
Compiling your financial information early in your matter and presenting it in an organised fashion has many benefits. It can be used at any stage – from negotiations, during dispute resolution and if necessary, for Court proceedings. As well as having a snapshot of your asset pool to assist in negotiations, you will likely save on costs associated with others having to arrange the information on your behalf.
When listing assets include their approximate value. Most local agents will provide a written market appraisal for real estate at no cost. For motor vehicles, you can visit www.redbook.com.au and obtain a printout of private sale figures for particular models.
Remember to include all assets – those that are jointly and individually held as well as those that are held with a third party. Assets comprise real estate, motor vehicles, furniture, art, antiques and collectables, shares, investments, superannuation, cash and business interests.
When listing liabilities include mortgages, loans, overdraft facilities and credit cards and for financial resources include wages, and income from other sources such as rental properties, dividends, business and company interests. Bank statements, share information and superannuation statements can easily be downloaded from the internet.
If relevant, financial returns for companies or partnerships should also be included and, if possible, the last three years’ tax returns for each party.
Tip 2 – Don’t avoid or put off getting legal advice
The sooner you know your rights the better.
Many separating couples attempt to finalise their own property settlement or avoid settling their financial matters altogether. This is dangerous for several reasons. Failing to close joint accounts or to transfer assets is messy, leaves the parties vulnerable to future claims and makes it difficult for them to move on.
Do It Yourself property agreements made in the absence of legal advice, often contain ambiguous provisions and are unenforceable. Without a complying Financial Agreement or Consent Orders (see below) parties are generally unable to access important stamp duty and tax concessions when it comes to transferring real estate from one to the other.
No too family law cases are the same. Investing in an initial interview with a family lawyer can provide guidance as to a likely settlement outcome and a basis from which to start negotiations.
Your lawyer can recommend any urgent measures you may need to take to protect property, advise you of your legal rights generally, and discuss the implications of a likely settlement. Your lawyer can also explain the impact that your separation has on your Will and provide guidance on reviewing your estate plan.
Money spent early after separation on sound legal advice can return significant savings down the track.
Tip 3 – If possible, avoid going to Court
Generally, Court proceedings should be an option only when urgent orders are critical, the matter is highly complex, or when one or both parties are intractable, and a settlement is impossible.
Court proceedings exhaust time, money and emotions, and can usually be avoided. Most matters can be (and are) resolved and legally finalised by entering into a Financial Agreement or Consent Orders.
A Financial Agreement is a legal contract between the parties that sets out how their property matters will be resolved. Financial Agreements are not approved or registered in Court – to be enforceable they must comply with the formalities prescribed by legislation. Each party will need to obtain independent legal advice before signing the agreement.
Consent Orders are usually considered more formal than Financial Agreements because they must be approved by a Registrar of the Court. They can deal with both financial and parenting matters. An application for Consent Orders must include full financial disclosure by both parties and will typically be approved if the Court is satisfied that the orders are just and equitable.
Tip 4 – Don’t stress the small stuff
You should never forfeit your legal rights however there are times when it is practical to agree to disagree, let things slide and move on. When emotions are involved it’s easy to get bogged down in minor issues that get in the way of a resolution and ultimately have little impact on the outcome.
For example, the difference argued in the value of a motor vehicle can soon be depleted by the costs of disagreeing, particularly if lawyers are instructed to get involved. Formal valuations cost money and are justified in many cases, however, unless the motor vehicle is an irreplaceable classic, a middle-range figure obtained from Redbook should usually suffice.
Of course, there is little you can do if your ex-partner is antagonistic and fails to relent, but maintaining composure should eventually prevail.
Conclusion
These are just some of the ways you can use your time and resources wisely to help finalise your matter cost-effectively.
This is general information only and you should obtain professional advice relevant to your circumstances. If you or someone you know wants more information or needs help or advice, please contact us on 02 6622 5566 or email us [email protected].