Understanding the Role, an Albany Matrimonial Property Lawyer
An Albany matrimonial property lawyer plays a vital role for individuals and couples considering a long-term future together. Separation and divorce are very common in New Zealand, which usually leads to not just the emotional stress of a separation, but one that can be very expensive. The lawyer can’t help with any emotional issues but can go some way towards making the financial issue less frustrating. Let’s examine the work of these lawyers.
What is Matrimonial Property?
In broad terms, when a couple has been living together for at least three years, then all assets are deemed to be owned equally, irrespective of whose name those assets are held in. This includes the family home, vehicles, savings, and any other common assets acquired during the relationship, and also debts.
When the couple separates, then the total value of those assets must be shared equally. Sometimes the two sides can understand this but often a big sticking point is the family home, especially if one party owned it before the relationship.
All of this is set out under the Property (Relationships) Act 1976, which describes how property should be divided when a marriage, civil union, or de facto relationship ends.
Protecting One’s Assets
One way of protecting major assets that were brought into the relationship is to have a pre-nup drawn up by an Albany matrimonial property lawyer. A pre-nup, known under various names including a Section 21 Agreement, or a Contracting Out Agreement, can detail the way that assets can be split upon separation.
This is especially valuable if one party brings a home to the relationship. However, generally, the increase in value of the home during the time together will be split, so the original owner needs to have a commercial valuation at the time of writing the pre-nup.
Key Responsibilities of an Albany Matrimonial Property Lawyer
A key responsibility is to explain to their client the rights and obligations of each side in the relationship in terms of the jointly held assets, and debts.
They can explain how to protect your separate property, i.e. any assets you held prior to the relationship. They will note the assets, and any relevant values on the document and that all financial information is disclosed accurately and transparently.
It is essential that both parties seek legal advice before agreeing to and signing any documents.
Legal Advice and Work After a Separation
If a relationship has broken down, then the matrimonial property lawyer will act for their client to reach agreement with the other side.
Despite the requirement to split assets on a 50/50 basis, often one side will try to gain a financial advantage. The other party’s lawyer will try to ensure that their rights are met in the face of the excessive demand from the other side.
Generally, assets are not divided equally but the total value of the asset base is. For example, one side may want to stay in the house. In that situation, the two sets of lawyers will look at other assets that can be offered in exchange for the house net value. Maybe an offset of savings for example.
Skills of a Matrimonial Property Lawyer
Being able to negotiate with the lawyer from the other side is essential, so that an agreement can be reached.
Often a key role by such lawyers is to explain to their client that their wishes are not realistic, nor legal. It is a case of managing the expectations of their clients. Thus, negotiation is key skill to have.
Once agreement ahs been reached, the lawyers will then draft a settlement agreement. This will detail the value of assets, and how they will be distributed.
After this has been accepted and signed, the lawyer then has to manage the distribution of those assets. A simple example is that if the house was in joint names, the party stating there has to buy the home from the joint owners. It is a stand-alone property transaction with all the usual legal issues of a real estate sale or purchase.
Court Appearances
If agreement cannot be reached, then the case will go to the Family Court. In this situation the lawyers will prepare documents and generally present the case before the court.
Summary
If you and your partner are considering spending a life together, it is a good idea to speak to a matrimonial property lawyer to get advice on your rights and obligations about your assets. This will cover not just any property that you currently own, but that which you will acquire during your life together.
Having a Section 21 Agreement can save a lot of distress should you separate, not to mention reducing legal bills.
If you live on the North Shore of Auckland, a good Albany matrimonial property lawyer is McVeagh Fleming. They have a team of lawyers with experience in all aspects of relationship property and will be able to help you.