What to Do When Your Property Settlement Is Delayed

Common Reasons for Property Settlement Delays

Property settlement is a crucial step following the breakdown of a relationship or marriage, ensuring that assets and financial responsibilities are divided fairly. However, delays can occur for various reasons, potentially causing financial strain and prolonged uncertainty. Below are some of the most common factors that can contribute to a delayed property settlement:

Disagreements Between Parties

Disputes between separating partners are one of the primary reasons property settlements take longer than expected. These disagreements can arise from:

• Asset division – Differing views on who should receive specific assets, such as property, savings, or investments.
• Valuation disputes – Conflicting assessments of asset values, especially for properties, businesses, or complex financial structures.
• Financial responsibilities – Disagreements about liabilities, including mortgages, loans, or outstanding debts.

In some cases, mediation or Court intervention may be necessary to resolve these disputes, further extending the settlement timeline.

Incomplete or Incorrect Documentation

For a smooth settlement process, parties must provide accurate and complete financial disclosures. Delays can occur if:

• Financial documents are missing – Bank statements, tax returns, superannuation details, or asset valuations are not provided in time.
• Failure to comply with disclosure obligations – Each party is required to disclose their financial situation fully and honestly. Any failure to do so may lead to additional investigations and legal challenges.

Ensuring all documents are prepared correctly and submitted on time can significantly reduce the risk of delays.

Court Delays and Legal Proceedings

If the property settlement requires court intervention, external factors may impact the timeframe, including:

• Court backlogs – The family law system often experiences delays due to high case volumes, which can slow down hearings and decisions.
• Scheduling issues – Finding available dates for court hearings, especially when multiple legal representatives are involved, can contribute to longer wait times.
• Judicial workload – The complexity of some property settlements may require additional time for the court to review evidence and reach a decision.

While parties are encouraged to resolve matters through negotiation or mediation, some cases require court orders, making delays unavoidable.

Steps to Expedite a Property Settlement

Property settlements can be a complex and time-consuming process, particularly if disputes arise. However, by taking proactive steps, parties can help ensure a smoother, more efficient resolution. Below are key strategies to prevent or minimise delays in a property settlement.

Engage in Early Negotiations

Open and honest communication between both parties can significantly speed up the property settlement process. Early negotiations can help:

• Clarify each party’s expectations regarding asset division.
• Identify potential disputes before they escalate.
• Reduce the likelihood of needing court intervention, which can cause significant delays.

If both parties can reach an agreement through direct discussions or with the assistance of their legal representatives, the settlement process can be finalised more quickly.

Consider Mediation or Arbitration

Alternative dispute resolution (ADR) methods such as mediation or arbitration can provide a faster and less adversarial way to resolve property disputes.

• Mediation involves an independent mediator who helps parties negotiate an agreement in a neutral setting.
• Arbitration is a more formal process where an arbitrator makes a binding decision based on the evidence presented.

These approaches can help avoid lengthy court proceedings and allow for a more cost-effective resolution.

Ensure Complete and Accurate Financial Disclosure

Failing to provide all necessary financial information can cause significant delays in the property settlement process. To avoid setbacks:

• Disclose all assets, liabilities, income, and financial interests upfront.
• Ensure that documentation, such as tax returns, bank statements, superannuation details, and property valuations, is accurate and up to date.
• Work with a financial expert if needed to ensure all required information is properly accounted for.

Full transparency from the beginning can prevent disputes and avoid unnecessary delays in negotiations or court proceedings.

Seek Legal Advice Early

Consulting an experienced family lawyer early in the process can help ensure that legal obligations and entitlements are clear. A lawyer can assist with:

• Preparing necessary legal documents.
• Advising on fair and reasonable property division.
• Guiding parties through the settlement process to avoid unnecessary complications.

Having legal advice at the outset can help prevent disputes and streamline negotiations.