What Happens to Post-Separation Assets?
Parties can build up significant assets after separation and should be aware of how those assets are treated in family law proceedings.
Property that is acquired after separation but before a formal property settlement is considered part of the property pool up until the property settlement time limits have been reached or a formal property settlement has been made. A formal property settlement is the date either the following happens:
- consent orders are signed:
- binding financial agreement is signed; or
- court orders are made.
Property acquired after separation but before divorce?
Yes property acquired post-separation and before divorce, could still form part of the property pool. Divorce nor the waiting period for divorce impacts the property settlement time limit.
What about property acquired after divorce but before property settlement?
Yes property acquired after divorce but before a property settlement can be included in the property pool, up until 12 months after the divorce order.
What about property acquired outside of the property settlement time limits?
There are ways to bring an application for a property settlement outside of this twelve-month limit, however generally, any property you acquire after twelve-months of being divorced or after a property settlement is finalised, then that property will be protected.
Can you buy a property while separated?
While it is not uncommon for one partner to buy a new property to live in after a relationship dissolves, this is generally not recommended until a formal property settlement has been done or you are outside of the property settlement time limits. If you buy a new home your former partner may be able to claim an interest in your new home.
What about super accumulated after separation?
Just like tangible property, superannuation forms part of the property pool of a relationship. If you have earned superannuation after separation and before your property settlement, it can be included in the property pool too.