Preparing for property settlement mediation
When separating couples need to divide their assets, debts, and financial interests, preperation for property settlement mediation is often the first step in resolving disputes. Under Australian family law, mediation is encouraged as a way of settling property settlement disputes without the need for costly court proceedings.
This article explains how the family law mediation process works, why it’s important, and how you can best prepare to give yourself the greatest chance of a fair outcome.
Why mediation?
Mediation is a structured form of negotiation designed to help separating couples resolve their family law matters without going to court. It’s one of the alternative dispute resolution methods promoted under the Family Law Act, encouraging parties to find workable solutions with the help of a neutral third party – your mediator.
The Federal Circuit and Family Court of Australia often requires parties to attempt family law mediation before pursuing litigation, particularly in matters involving property division. Mediation gives couples more control over the final outcome and can reduce both emotional stress and legal fees. Mediation supports a fair and equitable division that reflects both parties’ individual circumstances, but unlike a court, where a judge imposes a decision, the involved parties have much more input into decisions made.
Finding a good mediator
The success of the mediation process can depend heavily on the experience and skills of the mediator. Look for a professional with training in family law mediation who understands both the legal framework and the complexities of financial matters.
A skilled mediator should help you explore creative solutions and guide discussions respectfully. You can engage a mediator privately or through services recommended by your family lawyers.
How to get started with property mediation
Before booking, decide whether you want to approach mediation jointly with your former partner or book an individual session and have the mediator extend an invitation to the other party. Some mediators offer private sessions with each party before moving to a joint meeting.
The first stage involves an intake process, where the mediator gathers information from the parties involved, discusses the mediation approach, and checks whether mediation is suitable, especially if there are concerns about family violence or imbalances of power.
Preparing for property settlement mediation
Preparation is key to a successful mediation. Organising your relevant documents and understanding your goals can help you get the most out of the negotiation process.
Before your mediation, make sure you:
- Mentally prepare yourself for negotiation and compromise.
- Have a clear idea of your preferred outcome – know what you’re willing to accept and what’s non-negotiable.
- Make a list of key issues you want to cover and stick to it during the discussion.
- Bring all relevant financial documents and information with you.
Bring details of assets and liabilities, financial resources and future financial needs
Before you attend property settlement mediation, it’s important to have a clear and accurate picture of your financial situation. This means gathering all relevant documents that show your assets and liabilities, financial resources, and any information that might affect your future financial needs. Being well-prepared not only supports the mediation process but also helps ensure a fair and informed discussion.
If possible, make sure you have a copy of:
- Recent bank statements and details of all bank accounts
- Documents showing income, tax returns, and payslips
- Superannuation statements
- Property titles and asset values (including market appraisals or formal valuations)
- Information about debts, loans, credit cards and other liabilities
- Details of trusts, family businesses, partnerships, or sole trader interests
- Records of both financial contributions and non-financial contributions to the relationship, including indirect financial contributions made by either party
Where applicable, be prepared to discuss matters like spousal maintenance, child support, and any parenting arrangements that may influence financial needs.
The importance of full and frank financial disclosure
Full financial disclosure is a legal requirement under Australian family law. Both parties must provide honest and complete information about their financial assets, liabilities, income and financial resources. This obligation applies whether you’re negotiating privately or through the courts. Failure to give frank financial disclosure can undermine the validity of any agreement and may lead to further disputes or court proceedings.
What happens during property settlement mediation?
On the day of the mediation, the mediator will guide the parties involved through discussions about how to divide the asset pool, often called the property pool. The mediation sessions may be conducted together or involve separate rooms with the mediator moving between parties (known as shuttle mediation).
You’ll discuss your financial history, assess the value of assets and liabilities, and consider both parties’ future financial needs. The goal is to reach an agreement on a fair division of assets and debts, taking into account factors such as:
- Significant contributions made by each party
- The future needs of both parties, including care of children
- The nature of assets and liabilities being divided
- Any ongoing financial matters, such as superannuation splitting or property transfers
What happens after mediation?
If you reach an agreement, you can make it legally binding by formalising it through:
- Consent orders filed with the court
- A binding financial agreement (with both parties having obtained independent legal advice)
- Superannuation splitting orders or property transfer documents
These steps help protect your rights and ensure the agreement is enforceable under family law.
What happens if you can’t reach an agreement?
If you can’t reach an agreement in your initial session, you may choose to attend further mediation sessions. Sometimes, having more time to consider your options or gathering additional information can help both parties move closer to a resolution.
If further mediation still doesn’t lead to agreement, you may need to start court proceedings. This means asking the court to decide the division of your property, which can be a more formal, time-consuming and costly process, but is sometimes necessary when negotiations break down.
Do you need support or a lawyer in mediation?
While it’s not compulsory to have legal representatives during mediation sessions, many people choose to seek legal advice beforehand or have a lawyer attend with them. A family lawyer can help you understand your legal rights, clarify your financial position, and make sure you don’t agree to anything that might disadvantage you. It’s common to obtain independent legal advice before signing any legally binding document that results from mediation.
Need help getting prepared for mediation or property settlement?
Preparing properly for property mediation can significantly affect your outcome. Understanding your legal rights, gathering the correct documents, and seeking support can help you achieve a resolution that works for you. Always seek legal advice before finalising any agreement to ensure it reflects a fair and equitable division of your assets and protects your future financial needs.
Ready to get started with a mediation session? You can book an upcoming time here.
If you’d like to learn more about preparing for mediation or need advice on family law matters, contact our experienced family lawyers for guidance on your next steps. Please note that we can only act as your family lawyer or your mediator, so please get in touch if you are unsure which option is right for you.
Proper preparation for property settlement mediation, including legal advice, ensures your agreement is fair and enforceable.
