Along with split couples staying together, more prenups being signed, and couples opting for informal separations, the cost-of-living crisis is causing myriad complications surrounding divorce – navigating separation with property is among them.
Property disputes are climbing; with national rents breaking records and interest rates becoming the mortgage holder’s enemy, many couples are faced with figuring out who stays in the family home, and the realities of living “separated under one roof”.
The hardest parts
Tiyce & Lawyers Family Law Specialists principal Michael Tiyce (pictured) said: “One of the key challenges is assessing the value of contributions that each party has made during the relationship – factoring in that non-financial contributions can be just as valuable.”
Tiyce echoed the reality of separated couples being forced to live together due to economic circumstances, up until “a full financial separation has been achieved”. Difficulty in finding accommodation, mortgage repayments, child support payments, and the time it takes to get a resolution in the Family Court are common causes of this delay, he said.
“COVID presented its own difficulties in terms of selling property and obtaining rentals – while that has eased somewhat, the financial burden is now probably greater without people receiving government-guaranteed income,” he added.
The role of the client
As specialist family lawyers provide curated advice based on the instructions of their clients, Tiyce said it is important that clients provide evidential documents, such as bank statements and tax returns, to ensure that advice is accurate and relevant.
“My biggest advice would be for clients to take their lawyers’ advice in order to achieve a swifter resolution and ultimately save money,” Tiyce said.
Best practice for lawyers
Tiyce said lawyers should remind clients struck with emotion of the commerciality involved in a divorce, as a slow resolution will simply cost more “money and heartache than is necessary”.
To provide holistic advice, Tiyce said specialist lawyers must work with accountants, valuers, and financial advisers to make sure that decisions are made in accordance with the individual circumstances of each client.
Tiyce stressed that the role of lawyers as trusted advisers in these circumstances is crucial. He emphasised that financial agreements are not binding unless certified by a legal practitioner.
“You are making one of the most important decisions of your life; it should be made with full knowledge of all the legal implications that will result from the decision,” he said.
Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.
