The 4 Steps To Determining A Financial Split
Many people assume upon the breakdown of a marriage or de-facto relationship that a person will lose half of their net worth. This is not automatically the case. Guided by the Family Law Act and various case law, family lawyers assess the facts and circumstances of each respective client’s relationship on their merits and by way of a four-step process to enable them to provide professional advice.
The first step is to crystallise the parties asset pool which involves collating the individual assets owned by both parties and attributing values to those assets. The assets to be crystallised may involve property, shares, respective superannuation entitlements, cash at bank, business interests, various other investments, motor vehicles and any other items of significant value. It is imperative to also recognise any liabilities encumbering the asset pool including mortgages, credit card debts, personal debts, loans etc. Both parties are legally obligated to provide full and frank financial disclosure to the other party.
The second step involves assessing the parties contributions to the asset pool. Contributions may be assessed as financial and non financial contributions. This step involves carefully canvassing the duration of the relationship, the parties employment histories, how and when assets and liabilities were accumulated and taking into account other relevant matters such as redundancy payments, inheritances and other contributions that may contributed to the acquisition and conversation of the asset pool.
The third step is to consider the parties respective future needs such as the parties ages, health, earning capacities and care of children under the age of 18.
The fourth step involves comprehensively assessing the parties relationship and determining a settlement that is just and equitable in all of the circumstances.
It is important that each person’s circumstances are assessed individually utilising a tailored approach to ensure that each relevant factor is considered before an overall assessment is made so that settlement discussions and negotiations can take place.
Article written by Nicholas Pastro, Lawyer, npastro@
4 Surprising Facts About Power Of Attorney
A power of attorney is the authority to act for another person in specified or all legal or financial matters. Below are some lesser known facts about power of attorney –
- If you appoint your spouse as your attorney and later divorce, their appointment is not automatically revoked. You will need to either update your document, formally revoke their appointment or destroy the document.
- If you do not have the mental capacity to make a power of attorney, your family will be required to apply to VCAT to be appointed as administrator in order to manage your assets.
- Not all States and territories in Australia accept each other’s powers of attorney. It is worthwhile making enquiries if your assets are outside of Victoria.
- A ‘General non-enduring Power of Attorney’ grants an attorney power to complete specific task/s usually for a specified period. For example, selling your house while you are overseas.
If you have any further questions about your power of attorney, please contact us for a free consultation.
Article written by Vanessa Bozinoska, Lawyer, vbozinoska@jplegal.
We are pleased to announce the addition of a new staff member Vanessa Pastro, at JPLegal (photo). She will be assisting our lawyers with probate, estate matters and conveyancing transactions. Vanessa has a background in education and training and is now pursuing her interest in law.
JPLegal would also like to wish Amanda Howes our conveyancing lawyer the very best as she begins maternity leave. Our thoughts will be with Amanda for a happy and healthy baby. All existing and new conveyancing matters will be handled by our Lawyer Vanessa Bozinoska.
PLegal @ Mamo
Just down the road from our office on Burgundy Street, is Mamo Fine Tailors & Men’s Clothing together with Chris’ Tailoring Service. They are a family run business offering a wide range of both casual and formal men’s attire. With spring racing season almost here, make sure you are looking dapper by visiting their store at 138A Burgundy Street, Heidelberg.