A common misconception parties have is that financial property settlements are finalised by the Court as at the date of separation or divorce (if applicable).
The false belief is that what they earn/gain/lose and what their ex. earns/gains/loses after they are separated is somehow set aside from the net asset pool that existed as at the date of separation and does not form part of the property settlement.
The best way to highlight the potential outcomes which could occur if your property settlement is delayed is to provide some extreme scenarios.
If you win the lotto or inherit a fortune after your are separated but before you reach a final and binding settlement then you need to be prepared to share your windfall with your ex!
Likewise, if for example, your ex. incurs debts after separation, be prepared to share these debts as well (at least until the date the final and binding settlement is made).
You need to be fully aware that any savings you or your ex. set aside after separation (incl. superannuation contributions), gains you or your ex. make or debts or losses you or your ex. incur after separation are included in the net asset pool to be settled between you both.
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.