Collaborating with Professional Advisers to Reach a Family Law Property Settlement
Separations can often be quite complex giving rise to many issues that result in family lawyers needing to collaborate with solicitors in other practice areas (such as commercial or superannuation law), but we can also be greatly assisted by the parties’ professional advisers.
Commonly, once family lawyers take on a matter, we will reach out to our client’s professional advisers for assistance in collating required documentation and to assist with advice on suitable financial separation options. Other times, separating parties’ go straight to their professional advisers for assistance in planning their financial separation and are referred onto us to handle the legal requirements. Importantly, both clients and professional advisers should be aware that family lawyers cannot provide advice to both parties to a separation, no matter how amicable they are. Therefore, it is pivotal that who we act for is clear, and both parties have the opportunity to seek legal advice and representation as we proceed with the separation.
How do we collaborate with professional advisers?
Family lawyers tend to work closely with professional advisers regarding the parties’ duty of financial disclosure. This is an important part of a separation process to both parties and ensures decisions can be made about settlement offers that are exchanged between parties. While this includes many documents the parties can obtain themselves such as bank statements and payslips, parties with more complex financials such as when businesses, trusts and self-managed superannuation funds are involved, often require the assistance of their professional advisers to collate all the required documentation. Professional advisers then become key to streamlining the flow of information for clients to comply with their duty of disclosure obligations.
In a financial settlement, we deal with relationship property. Property is defined broadly by the Family Law Act as all property to which a party is entitled to, whether or not they are currently in possession of it. Professional advisers can assist in identifying a parties’ interest in property such as proportions of business ownership, trusts and self-managed superannuation funds, and further by providing information for valuations of property. Once the property of the relationship is known then the next steps of negotiations and exchange of offers of settlement can occur.
Further issues which may arise where we work closely with professional advisers include:
What is the succession plan for your client’s business and commercial considerations;
What strategies can be put in place to secure family businesses in the event of separation;
What needs to occur to ensure that one party is extricated from a business (if required) to ensure a separation of assets between separating couples; and
Professional advisers can be instrumental in assisting with succession plans and strategies.
How professional advisers can support clients once a financial settlement is reached
Any property settlement agreed to by the parties must be formalised to be binding. Professional advisers are vital in reviewing terms of settlement to:
ensure no unintended taxation or other liabilities are triggered; and
agreements can actually be implemented.
Professional advisers and family lawyers should work in partnership to obtain the best outcome for their mutual clients, and we are appreciative of proactive assistance. Separations can be conducted well and do not need to be a stressful or upsetting time for clients, and having a team of professional advisers will greatly assist parties to move forward as effectively and efficiently as possible and help to achieve the best outcome.
Bridgette Kelly
Principal
M 0438 714 965 | T 03 5225 5275
E bkelly@ha.legal
Natasha Vassallo
Lawyer
T 03 5225 5237
E nvassallo@ha.legal
