My partner and I reached an agreement for a property settlement ourselves, so why do I need to formalise it?

A lot of the time couples can reach an agreement on a property settlement between themselves. The next question that usually follows is do I need to formalise that agreement?

While some people may be wary to engage a lawyer to formalise the agreement when the separation has been amicable, it is important to finalise the property settlement under the Family Law Act. This can be done through an Application for Consent Orders or a Binding Financial Agreement.

Without a formal property settlement, there is nothing stopping the other party from applying to the Court for a property settlement in the future. In Family Law matters, the pool of assets is assessed at the date of the Court hearing or trial, not at the date of separation. For example, if a party receives an inheritance post-separation or acquires property, this is taken into account in the pool of assets at the Court hearing.

Formalising your property settlement provides you with insurance that the matter is final and ensures you do not have to rely on your former partner keeping their word.

Another important reason to finalise your property settlement that most people forget about is in the event of your death. If you do not finalise your property settlement and you predecease your former partner, your former partner will be able to contest your Will under section 90 of the Administration and Probate Act 1958 (Vic) as they would have been able to issue proceedings to formalise a property settlement.

Speak to one of our Family Law team members about formalising your property agreement by making an appointment online.