Settlement mediation brings the divorcing couple together to talk about a fair and equal division of their assets and liabilities. Separation is a tough and emotional process. Beyond the heartbreak, there are big financial decisions to be made.
One of the biggest hurdles couples’ faces is a fair and peaceful division of their assets and liabilities, known as property settlement. This can be a huge source of stress and conflict when emotions are high.
That’s where family law property settlement mediation comes in. This alternative dispute resolution (ADR) process provides a cheaper and more peaceful way for divorcing couples to decide how to split their joint assets and liabilities.
Property settlements used to be settled through a property dispute. It’s costly, time-consuming and emotionally draining to use this adversarial approach. Instead, mediation offers a more collaborative environment where couples can work together under the guidance of a neutral third-party mediator.
Why Is Mediation Good for Disputed Couples?
- Less Conflict and Stress:
Mediation is a more collaborative environment than the family court. Couples can talk openly about their needs and concerns with the mediator’s guidance and get a more respectful outcome.
- Cost Saving:
- Lower Fees: Settlement mediation is much cheaper than litigation. You split the mediator’s fees, not separate lawyer fees or court legal fees.
- Faster Process: You’ll get to an agreement faster through mediation than going through the court system, saving time and money.
- Control Over the Outcome:
In settlement mediation, you and your ex-partner get to decide the final outcome, not a judge. This can lead to a greater sense of fairness and satisfaction. Mediation is a private process, unlike court proceedings which become public record. This can be especially important if you want to keep things private during a difficult time.
- Flexibility and Customisation:
Mediation allows for a more flexible approach, taking into account each partner’s individual circumstances and priorities. You can tailor the process to address specific needs and concerns. The collaborative nature of mediation can help reduce animosity and potentially lead to a more civil co-parenting relationship. This is especially the case if there are children involved.
Property Settlement: Options
Separation is a tough process, emotionally and financially. One of the biggest hurdles couples’ faces is how to split their joint assets and liabilities, known as property settlement. This can be a huge source of stress and conflict especially when there are no clear rules or easy answers.
Here’s a look at the other ways property and assets can be divided apart from settlement mediation:
- Agreement: This is the best-case scenario. Couples can work together to agree on how to split their property and finances without mediation or court intervention. Disputed couples may negotiate, compromise and talk openly about their property division.
It’s highly recommended that divorcing couples who have agreed on their property division to get consent orders. After they’ve agreed, a consent order formalises it into a binding document. The court then reviews and approves the order to ensure fairness for both parties.
- Court: If agreement can’t be reached on settlement mediation, court intervention may be required. A judge will then decide how to split the assets and liabilities based on the laws and legal precedents of your jurisdiction. This can be time consuming, costly and emotionally exhausting.
- Binding Financial Agreement: A binding financial agreement is also known as a prenup, is a legal contract between two people in a relationship. It outlines how their finances and assets will be divided if the relationship ends.
Why Seek Legal Advice Even with Amicable Agreements?
While reaching an agreement outside of court might seem straightforward, it’s always recommended to consult with a lawyer specialising in family law and settlement mediation. An initial consultation can help you:
- Understand Your Rights and Obligations: A lawyer can explain the laws around property division in your jurisdiction. This gives you the knowledge to make informed decisions about your financial future.
- List All Assets and Debts: Having a clear picture of your marital assets and liabilities is key to a fair settlement. A lawyer can make sure all relevant factors are considered.
- Protect Your Interests: Even if you’re aiming for an amicable separation, independent legal advice can protect your rights and ensure you get a fair share of the marital property.
Settlement Mediation: What About Children?
In addition to property division, another major concern for divorcing couples with children is child custody and related arrangements. Child custody arrangements are top priority for divorcing couples with children. This describes how divorcing parents share parental responsibilities, including decision making and living arrangements. There are various custody options:
- Sole Custody: One parent has primary decision making and the child lives with them most of the time. The other parent may have supervised visitation under certain circumstances. For example, the visiting parent may have a history of drug abuse or domestic violence. So, someone must supervise them when they see their children.
- Joint Custody: Decision-making and parenting time is shared between both parents. There are variations of joint custody, joint legal custody (shared decision making) with primary residence with one parent or equal shared parental responsibility.
Spousal Maintenance
Divorcing couples in Australia may also need to consider spousal maintenance, a financial support payment from one spouse to the other party. This is to help the spouse who can’t maintain a reasonable standard of living on their own, often because of:
- Age or health limitations
- Caring for young children or dependents
- No recent work experience
Important: Spousal maintenance is not automatic. A court will consider each spouse’s needs, financial capacity and length of marriage to determine the amount and duration of payments.
Get in Touch
JB Solicitors help disputed couples get their fair share in property settlement. Even after divorce, each party needs to have their needs met and move on from the divorce with certainty. Don’t let divorce ruin your property settlement agreements.
Call us today for settlement mediation and dispute resolution services with our family dispute resolution practitioners.