Covid-19 and Family Law Property Settlement

The Coronavirus pandemic has affected us all, socially, and economically. Despite the Australian Government taking unprecedented steps to stop the spread of the virus, we have already begun to see disruption to the Australian economy and our private lives. Such impacts may directly affect and implicate your family law property settlement.

If you are in the midst of negotiating a property settlement with your former partner based on information obtained prior to Covid-19, you may find that the asset pool available for division is likely to change.

Whether you have just started negotiations, are in the middle of court proceedings, or close to finalising a property settlement, the following effects of Covid-19 will likely require your attention:

• In consideration of the declining property market, real estate values are also expected to decrease, and property valuations conducted in February 2020 may now already be outdated and require an updated valuation. This may also mean that some can no longer refinance because of a drop in the value of equity and some may also find it more difficult to refinance when their employment is more uncertain.
• Valuations that were prepared before COVID-19 may be redundant and there is a risk that valuations will need to be updated or re-worked depending on what area the business is in. Further, valuations prepared during or after COVID-19 may be disputed. It might also be difficult to predict future cash flow or profit and parties may argue on the accuracy and appropriateness of the valuations.

• The ongoing cashflow of businesses may be put under significant strain over the coming months, until social distancing measures are lifted.

• Most people who hold their superannuation in industry funds have their money invested in shares. With the recent falling of the ASX by 30% in the past month, asset pools comprising listed shares are now significantly less valuable. This means there is less superannuation to be split in a property settlement.

• The Courts are working at a reduced capacity. Parties are rarely allowed to attend Court and it can mean you wait longer for a hearing.

• Settlement issues may arise in relation to the extent of available cash, liquidity of available assets, and the ability to obtain finance, all impacting on child support and maintenance packages.

Here at Straits Lawyers, we can work with you to make sure that you receive a fair property settlement.

If you would like to find out more about property settlements or your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an online interview.

Alternatively, if you would like to have a Binding Financial Agreement or Consent Orders drafted, Straits Lawyers are now offering online services at https://straits-lawyers.square.site/product/family-law-binding-financial-agreement-consultation-bfa-/5?cs=true.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.