property settlement mediation and financial mediation

PROPERTY SETTLEMENT MEDIATION AFTER SEPARATION

Get a fair and quick outcome.

Achieve a cost-effective solution.

Prevent your assets from being diminished by the cost of going to court.

Separated and needing assistance with property settlement or a related financial issue?

Relationship breakdown can be an overwhelming and stressful experience. Especially when you have to work out how to divide your assets and any debts whilst you navigate your changed circumstances and find your new ‘normal’.

When a marriage or defacto relationship ends decisions need to be made about how to divide shared property such as your home, superannuation, cars, furniture, a business and bank accounts. People normally also have debts such as mortgages, credit cards and other loans. Mediation can help separated couples with this process of property settlement and to move forward financially.

Mediation can also be used by couples who are beginning a marriage or defacto relationship, who are wanting to decide how they will divide their assets, in the eventuality of a separation in the future.

What is our Philosophy?

At Empower Mediations we think that mediation is an opportunity for people to be empowered to reach a fair and equitable agreement about how to divide their assets and any debts, without what they have worked hard for being diminished by the cost of litigation.

We have the expertise to assist you to identify what is called the 'pool of assets', reach agreement about the value of those assets, recognise the different types of contributions each person has made to build those assets, consider the financial needs of both people moving forward, and decide on a fair way to divide the assets between you. We will create what is called 'heads of agreement' for you so that you leave the mediation with a written record of your agreement.

What topics are commonly discussed in property & financial mediation?

How property and finances will be divided.
How outstanding mortgages and other debts will be handled.
Financial support of children.

Who can attend property & financial mediation?

Separated couples who want to decide how their property and finances will be dealt with.
Family members experiencing conflict about financial issues.
Couples entering a relationship who are seeking to create a binding financial agreement (also known as a pre-nuptial agreement).

Is property & financial mediation compulsory?

The law requires people to take 'genuine steps' to resolve their property or financial dispute with their ex-partner prior to filing an application with the court for a financial order. This takes the form of having to file a document called a ‘Genuine Steps Certificate’ setting out what attempts you have made to resolve your dispute before going to court. Mediation is a good way of showing that you have taken ‘genuine steps’. There are exceptions to this, and we will determine if any apply during your confidential and individual mediation intake session. The cost of legal fees can be considerable, which makes 'property settlement' mediation a good option to ensure that assets are not diminished by the cost of litigation.

What if we reach an agreement?

If you and your ex-partner reach an agreement about how to divide your assets and debts or a related financial issue, we will create what is called 'heads of agreement' for you so that you leave the mediation with a written record of your agreement. You can then take this to a lawyer who can draft your heads of agreement into a 'consent order' or a ‘binding financial agreement’ to ensure that your agreement is legally binding.

Property Settlement
Mediation

During 'property settlement' mediation your mediator will guide you through the steps in the facilitative mediation model (see separation page for more information on the process).

Within these steps your mediator will use their expertise to assist you to:

1. Identify what we call the ‘asset pool’.

You will need to gather information about your income, property, superannuation entitlements and debts and provide this to the other party and the mediator prior to the mediation session.

The law requires what is called ‘full and frank disclosure’ about income, assets and debts. Each person has a duty to provide full information and failure to do this can have serious consequences.

2. Reach an agreement about the value of those assets.

If you and the other person are unable to do this then you will need to obtain a formal valuation, or the mediation can proceed on the basis of you both agreeing to a value for the purpose of the mediation.

3. Recognise the types of contributions each person has made to build those assets.

These include financial contributions to property, non-financial contributions to property, and the contribution of homemaker and parent.

4. Consider the future needs of both people and any children moving forward.

There are a number of things that may be relevant here, and your mediator will guide to you through considering what is applicable in your circumstances. For example, they may include the age and health of each person including any children, the duration of the relationship and the effect that its duration has had on a person's earning capacity, and if a person has an obligation to support another child financially.

5. Decide on a fair way to divide the assets between you.

There is no starting point of 50% to each person under the Family Law Act. You will consider each person's contributions to determine the percentage split of the asset pool that you can agree on.

6. Create 'heads of agreement' so that you have a written record of your agreement.

Important: Time Limits for Court Proceedings

If you and your ex-partner are unable to reach an agreement about how to divide your assets and debts or spousal maintenance you must apply to court for a financial order:

within 12 months of your divorce becoming final if you were married.
within 2 years of the breakdown of your relationship if you were in a defacto relationship.
If you want to start court proceedings out of time then you must ask the court for leave. This is not always granted.