“The Family Home Will Always Be Split 50/50”

A prevalent myth is that the family home will always be divided equally between both parties. In reality, the court aims for a fair division, but this doesn’t necessarily mean a 50/50 split. The court considers various factors, such as:

• Contributions: Financial and non-financial contributions of both parties, including homemaking and child-rearing roles.
• Future Needs: The financial needs of each party, including their earning capacity, health, and care responsibilities.
• Other Circumstances: Length of the relationship, financial position, and the care of children.
  
  

This approach ensures the division reflects each party’s unique situation rather than automatically splitting everything in half.

“You Don’t Need to Formalise an Agreement If Both Parties Agree”

Another common myth is that if both parties can reach an agreement, there’s no need to formalise it legally. However, informal agreements can lead to misunderstandings or future disputes, and they are not legally enforceable. To ensure a binding and enforceable agreement, couples should formalise the arrangement through:

• Consent Orders: An agreement submitted to the court for approval, making it legally binding once approved.
• Binding Financial Agreement (BFA): A private contract that can be created before, during, or after a relationship, and it is legally binding once signed.
  
  

Formalising the settlement gives both parties peace of mind and ensures the agreement is enforceable.

“Superannuation Doesn’t Count in Property Settlement”

Many people mistakenly believe that superannuation isn’t part of the property pool in a settlement. In fact, superannuation is considered a financial asset and is subject to division in property settlements. It can be divided through:

• Splitting Orders: These orders divide the superannuation between the parties.
• Flagging Orders: These prevent one party from accessing the superannuation before the settlement is finalised.
  
  

Ignoring superannuation during negotiations can lead to an unfair distribution of assets, so it’s important to address it in the settlement process.

“Property Settlements Can Be Completed Quickly”

While some property settlements are finalised quickly, many take longer than expected. Couples may believe that if both parties agree, the process will be fast, but property settlements can be complex, especially when dealing with assets like businesses, investments, or superannuation. Factors that can cause delays include:

• Valuations and assessments of property and assets.
• Disagreements over the distribution of certain assets.
• The court system’s backlog, especially if the case goes to trial.
  
  

On average, property settlements may take several months to a year or more to resolve, depending on the complexity of the case.

“The Court Will Always Decide the Settlement If We Can’t Agree”

Many people think that if they can’t come to an agreement, the court will automatically step in and divide the assets. While the court does have the power to make a decision, it generally encourages couples to try to reach an agreement outside of court through negotiation or mediation. This approach is usually quicker, less expensive, and less emotionally taxing. If an agreement can’t be reached, the court will intervene, but it bases its decision on a variety of factors, including:

• Contributions to the relationship.
• Financial needs of each party.
• The impact of the settlement on any children involved.
  
  

The goal of the court is always to achieve a fair and just outcome for both parties.