Author: Vanessa Mathews

There are several options for resolving property or financial disputes.

If you and your partner can reach agreement on how your assets and liabilities should be shared you can choose to formalise this agreement. Either a binding financial agreement or consent orders can record the agreement.

Where you and your partner cannot reach agreement on how your assets and liabilities should be shared, an application can be made for the Court to hear your matter. This process is costly and time consuming.

We will always try to resolve your property/financial issues by way of agreement and we will only proceed to a Court hearing as a last option.

Mediation procedures are very effective in dispute resolution and are used to assist parties to reach financial settlements. Mediation is a in a dignified, timely and cost-effective process which can achieve a co-operative result for both parties.

No, you do not have to wait to be divorced.

You can apply for Orders concerning your property or children as soon as you separate.

But, when your divorce is granted, you will then have only 12 months to seek property settlement Orders.  After this time you need to apply to the Court for special permission to issue proceedings.

There may be circumstances where you may require an injunction or a restraining order. This is a court order to stop someone from doing something which may disadvantage you, such as stopping your spouse/partner from withdrawing savings out of a bank account or taking the children overseas or moving the children’s residence or school without your consent.

The court uses a four-step process to determine how property is divided between partners.

1. Identify and value all of the assets and liabilities.  This requires both partners to be forthcoming and disclose all of the necessary documents and certificates regarding property.  A court will look unfavorably upon someone who is not honest at this stage.
2. Evaluate the contributions each partner made to the asset pool.  This includes both financial contributions, such as salary and wages and indirect financial contributions, like gifts or property, like a home, acquired through an inheritance.   The court will also consider non-financial contributions, such as taking care of the home and the children.
3. Consider the future needs of each partner.   The court will take into consideration the health, age, education and earning capacity of each partner.  One partner may have stayed at home to care for the children for the last 10 years, enabling the other partner to develop professionally and earn a higher income.   These factors need to be considered when deciding who gets which property.
4. Provide a “just and equitable” division of the property.  The law does not require that the distribution of property be equal, only that it be fair.  For example, the court may determine that since the mother will be taking care of the couple’s five young children, she should keep the marital home.

Marital property is all assets and liabilities acquired during the course of the marriage.   Assets might include your home, cars, furniture, shares in a company, rental income and savings.   Liabilities can include any debt, such as mortgages or other loans and leases.

Generally, anything acquired before the marriage is not considered marital property.   However, the court might determine that certain types of property are marital.  The longer a couple is married, the more likely a court will consider property – even property acquired by one partner before the marriage – to be marital property.  For example, perhaps you purchased your home before getting married.  Fifteen years later your spouse, who had a higher income, contributed equally to the mortgage payments and the house renovations, may now be entitled to some share of the value of the house.

Many people have trouble dividing their property on their own.  Divorce is a time of emotional upheaval, bringing with it anger, loss of trust and generally an inability to communicate and be fair.  This is where the court steps in.

Couples can turn to the Family Court or the Federal Circuit Court to request financial orders.  This is a court order, dividing up the property – both assets and liabilities – of a couple.

The courts in Australia are the last resort for settling a property dispute between spouses.  Even if you and your spouse can’t come to an agreement, you need to show the court that you’ve tried to reach an agreement through some type of alternative dispute resolution.  This is called a “pre-action procedure”.

Pre-action procedures are also aimed at determining which disputes can be settled out of court and which really require the court’s intervention.  While you might not be able to come to an agreement about everything, you might agree on some issues (who gets the house) and only have to bring a small number of disputes to the court (how is the debt divided).

There are several steps to the pre-action procedure:

1. Inviting the other side to participate in dispute resolution, such as family counseling, mediation or arbitration.
2. Agreeing on a type of dispute resolution service.
3. Attending the dispute resolution and making a genuine effort to resolve the problem.
4. Give written notice to the other side if no agreement can be reached (or the other side refuses to attend the meeting) of your intention to file with the court.
5. Replying to the written notice if you are on the receiving end.

Consult with an experienced Family lawyer about the rules and requirements in pre-action procedures to ensure that you meet all of your obligations.

The best way to divide property is by coming to an agreement on your own.   Many couples are able to work out an agreement by themselves or with the help of an objective person, like a mediator.  In this way, you control exactly who gets what – the house, cars, furniture, savings accounts, and debts – without a judge intervening.

If you sign an agreement, you can bring it to the court to receive consent orders.   A standard “Application for Consent Orders” must be filled out and signed and then submitted to the court along with the agreement.   Once the court grants the consent orders, the agreement is binding on you and your spouse and has the same legal status as any other order the court gives.

An application for a Parenting Order can be made by the child’s parents, the child, a grandparent or any other person concerned with the child’s welfare.

The Court will only hear child related proceedings if an applicant has attended family dispute resolution (perhaps at a Family Relationships Centre) and obtained a certificate. A certificate is not required where:

• the Application is for Consent Orders,
• the matter is urgent or
• child abuse or family violence is involved.

When dealing with an application for a Parenting Order, the court should have as its paramount consideration the child’s best interests.

A child’s views can be taken into account via a ‘family report’ prepared by a family consultant or an independent children’s lawyer. Sometimes a judge may interview a child, but this is unusual.

A Court can make Orders about:

• parental responsibility;
• which parent a child lives with;
• wow much time a child spends with the other parent; and
• how a child communicates with a parent.

When a magistrate makes an intervention order to protect a child, they must check if there are Parenting Orders in place. A magistrate can decide to suspend, vary (change) or discharge (cancel) a Parenting Order if certain conditions are met.

The relationship between intervention orders and parenting orders is complex. An intervention order does not stop the respondent applying for a parenting order to see the children. Get legal advice.

Can child care arrangements specified in a Court Order be varied?

There is a legal obligation to take all reasonable steps necessary to put the Parenting Orders into effect. The children should be positively encouraged to comply with the Orders.

What happens if Court Orders become unworkable?

If Court Orders are no longer workable, parents should try to resolve matters with the assistance of a lawyer and vary the Orders. If agreement can’t be reached, then application is made to the Court and the Court may order that both parents attend a parenting program or consider varying the Orders.

What happens if the Court Orders are breached?

The Court takes breaches of its Orders very seriously. Depending on the circumstances, the non-complying parent can be referred to a parenting program, fined, made to provide compensatory (or ‘catch up’ time) with the child and parent, or even face gaol.

Reasonable excuse

When a breach occurs, the non-complying parent may show a reasonable excuse. For example, a very sick child (supported by proper medical evidence) may be considered a legitimate reason for a parent breaching an Order.

Less serious contravention with no reasonable excuse

If there is no reasonable excuse for a less serious contravention the Court can:

• make Orders for the person committing the contravention to take part in a post-separation parenting program,
• make further Parenting Orders that compensate a person for the time the other person did not spend with the child as a result of the contravention,
• order the person who committed the contravention to enter into a bond and
• order the person contravening the order to pay costs.

More serious contravention with no reasonable excuse

For more serious contraventions where no reasonable excuse has been established the Court can make Orders for fines or imprisonment in relation to the parent committing the contravention.

Further information is available at: familylawcourts.gov.au

A Parenting Plan must deal with one or more of the following matters:

• the person or persons with whom the child is to live,
• the time that the child is to spend with another person or other persons,
• the allocation of parental responsibilities for a child,
• how parents consult about decisions to be made,
• communication the child is to have with others,
• maintenance of a child,
• how to resolve disputes about the plan,
• how to change the plan to for changing needs of the child parents and
• any aspect of the care, welfare or development of the child or any other aspects of parental responsibility for a child.

A Parenting Order may be varied by a later Parenting Plan, but Parenting Plans cannot be enforced as an Order. When an application is made to a Court for Orders in relation to a child, the most recent Parenting Plan will be considered, if it is in the child’s best interest.

A parenting plan will be unworkable where:

• both Consent Orders and the plan deal with the same subject matter.
• the plan is vague and uncertain,
• the plan is silent on important issues or
• the plan deals with issues that cannot be part of a parenting plan such as Child Support or spouse maintenance.

Why Every Family Should have One

Divorcing parents are often so busy with their own anger or arguing over who gets what to remember their most important shared property their children.   By law, parents have a shared responsibility, which means that both parents must take care of their children’s financial, emotional and physical needs.  Family law in Australia encourages parents to work together on these issues and encourages families to create a “parenting plan” before divorce or the termination of a de facto relationship.

The purpose of a parenting plan is to detail the responsibilities and rights of each parent in order to do what’s best for the children.  A good parenting plan includes a day-to-day schedule for the children,  a break-down of time that each parent is to spend with the child for every day of the year, including all civil, religious and school holidays, payments for all of the various expenses, including medical, dental and after school activities, and how the parents will settle future disagreements. The court cannot grant a divorce order until it is satisfied that proper parenting arrangements are in place.  If parents are unable to create a parenting plan on their own, the court will do it for them.

The best parenting plan is one made by the parents themselves. Some parents are able to do this on their own, or with the help of a mediator or another trained professional in other methods of Family Dispute Resolution.

While a parenting plan is an agreement between the parents and cannot be enforced by the courts, there are legal remedies if a parent does not follow the plan.  The other parent may turn to the court and the court may make new orders based on the original parenting plan.

Below are five reasons to make a parent plan.

Everybody knows where they stand

A good parenting plan will include everything from which nights the children sleep at Dad’s house to what religion they will be brought up in to how the parents will settle disagreements between themselves. This limits places for disagreement and fighting between parents and gives them the tools to resolve disputes when they arise.  There’s no disagreement about where the kids will go for Christmas because it’s written in the plan.

More importantly, the children have stability. No matter what the arrangement, divorce or separation is hard on the children.  But having a regular routine, knowing that both parents agree on a particular decision and maintaining a loving relationship with both parents will make the transition and the coming years  easier.

Building Trust

Most likely, there is a lot of mistrust with the termination of the relationship.  Oddly, a parenting plan can help parents rebuild their faith in one another.   Creating the plan may also allow parents to hear from their children what they need and want.   Children, who may feel insecure in the new family setup, may be able to find a way to overcome emotional insecurity and learn to trust the family relationships again.

Starting Fresh

Laying out the plan ahead of time is not just good for the kids. it’s good for the parents too.  Following divorce or the end of a de facto relationship, parents have their own issues to cope with – living on one income, taking care of a home, and perhaps, even starting a new relationship.   Each parent needs to find time for him or herself to begin fresh but still be a responsible, caring parent.  A parenting plan that lays out the when and where, and leaves less room for surprises creates stability and structure for the parents as well as the children.

Financial Planning for Present and Future

A good parenting plan will detail who covers which expenses.   In addition to the basics like food and clothing, there are many “extras” that also need to be considered, including special medical and dental expenses, after-school activities and summer camp.  As children get older, parents need to think about driving lessons, university fees, and even weddings.  A good plan will take the future  and not just the current month or year  into consideration.  The current parenting plan doesn’t need to have all of these expenses included already, but it should provide a way for the parents to work out the division of these costs as they arise.  For example, parents may agree on percentages of incomes to be paid to a university fund for each child.    This prevents arguments between the “ex’s” and allows both sides to properly plan for the future.

A method for working it out

No plan is foolproof, and one of the most important parts of a good parenting plan is the mechanism for settling disputes.  For divorcing couples, this might even be the first time there is a plan for such inevitabilities in place.  Each family must figure out what works best for them.   Some may settle disputes by meeting over coffee in a neutral place.  Others may feel an outside mediator is necessary.   In many cases, just knowing a system for resolving problems exists helps families work through any difficulties that arise.

And one last note…..

Despite the plan, parents should remember that parenting doesn’t always follow a plan, despite the good intentions of both parents.   It’s inevitable that one parent will suddenly have an amazing work or vacation opportunity and ask the other parent to fill in, or a child will want both parents to be involved in a special project.   Parents need to remember that the children are at the center of any good plan.  They are not machines, they can’t always follow the adult rules parents make for them and they have their own needs and wants.   Parents need to remain open-minded, flexible and fair, even if every detail is not written into the plan.

Each of the parents of a child has responsibility for the child and a court can make an order which alters aspects of a parents responsibility toward their child. For example, a court could give one parent sole responsibility for decisions concerning a child’s education

As a starting point it is presumed that it is in the best interests of a child for parents to have equal shared parental responsibility for the child. This presumption is dropped if a parent has engaged in family violence.

Shared parental responsibility means parents must consult with each other about major long term issues affecting the child, such as education, religious upbringing and major medical treatment. Shared parental responsibility does not mean children must spend equal time with each parent, however they might spend substantial and significant time with the child. Parents will not spend equal time with their children if it is not reasonably practical or in the child’s best interests.

Substantial and significant time means:

• the time the child spends with the parent includes both weekend and week days and
• the parent is able to be involved in the child’s daily routine and occasions and events that are important to the child or the parent.

Case: What is reasonably practicable in Mt Isa?