If property settlement is not documented, are there any risks? The quick answer to this is yes. In case you are faced with divorce and you are planning on having your property settlement undocumented in a legal binding process then you must be aware of its many risks.
When an agreement has been reached on how the property will be divided, both parties are happy and contended with it and they want to avoid rocking the boat any further. They do not want to further upset their former spouse. They want to make it amicable. This is a common situation which happens to former couples who undergo property settlement Mandurah after divorce. However, things change. Most people regret on their decisions. They hear from other people that they are supposed to have more or they should be entitled to more assets. Their financial status change and people at times feel like they have to have access to much more properties or money. People find new partners, will have new relatives, friends and also neighbors who all often have a thing to say regarding your property settlement and they might try to influence or change what is already done.
Any of these instances could lead you into facing with a situation where your former spouse decides later on to make changes on your “informal” agreement of the property settlement.
In the friendliest terms, people will always think of themselves and when they notice that their financial status falls behind, they will remember that the agreement on property settlement is not legally binding that’s the time that they might want more later on.
The most suitable time to convince your former spouse to agree to make your final property settlement enforceable and binding is when both parties have just reached a decision on how to divide the property; and when both parties are in reasonable terms.
When both parties are ready to have the agreed property settlement to final, then it will not be hard to get the agreement into either a Binding Financial Agreement or Consent Orders.
When former partner does not wish to have a Binding Financial Agreement or Consent Orders, then you might be taking a huge risk and you should ask the reason why he or she doesn’t wish the settlement to be documented – are there any hidden agenda or are they hedging bets to have options open for any future event.
When you agree on the property settlement, why not have it documented, legally enforceable, by doing so there will be no misunderstanding or any attempt by any party to have things changed when circumstance change.
It’s not bad to trust on your former partner’s word, however there is a fact that you’re not together anymore and the one thing that you can totally trust in, with regards to your financial future and your property, is a Court Order.