Property Settlement Agreement – Preparing for Risks

When a couple divorces, most people usually choose a good lawyer and leave out most of the work to him when it comes to the various factors to settle in a dissolved marriage. This can go to the so many items like child support, domestic violence, all the way to Tugun property settlement agreement.

When a marriage is over, the financial ties among both parties need to be settled. If there is a joint house, for instance, there needs to have a decision on what happens to it. The property could be sold, or one party may be able to take over, like buying the other party’s interest, for instance.

Issues

Every relationship and situations of couples are different from one another. Advice on this regard should be based on the situation and not on somebody’s experience. The point in having these property settlements is to finalize your financial ties with your ex-partner.

If this is not finalized and resolved, either party may come back at the other to make a claim on property settlement. There may be situations where property or debt acquired by one party after the separation is brought to the property pool (assets, real estate, and other properties).

Surprises

There were extreme cases before where one party inherits an amount of money, or won a lottery after separation, but before a formal settlement of the properties were concluded. The inheritance and the lottery win can be included in the contested property asset pool.

Other practical issues included to be addressed after separation is who’s going to pay for the unfinished mortgage payments, personal loans, or credit card purchases. Getting a legal advice from your lawyer will prepare you on where you stand legally on such unexpected turn of events in court.

Property

Under the law, those items considered as property include all assets under the ownership or control of either or both the parties in the relationship. This includes real estate, interests in businesses and companies, shares, money in bank accounts, interests in trusts or entitlements, vehicles, boats, antiques, jewelry, artworks and others.

There might also be some financial resources that one party may have access to that the court can also include into the to-be-settled property accounts. Examples of these are the interests in deceased estates and interests in family trusts.

Formal settlement

Cases like these need not be brought to court for trial. The process is aimed at negotiating and finalizing the property settlement.

Through negotiations, agreement can be reached and the best way to finalize them is through Consent Orders. These Orders have been agreed on by both parties. The court scrutinizes it, and if satisfied, they will make the Orders.

Agreement

There is also an option to formalize any agreement in a document called a Binding Financial Agreement. This is an agreement between the parties that is not scrutinized by the courts.

There are many cases where these types of agreement have been overturned by the court system. Your lawyer will suggest you need not use these types of agreements, most especially without his consent or approval. Tugun property settlement agreement can be risky.