Divorce property settlement agreements are agreements signed by both parties to a divorce to divide property and debts. These agreements are legally binding, so it is important to carefully consider the terms and ensure that they are in your best interests before signing.
However, what happens if a spouse who owes debt tries to avoid paying it by agreeing to transfer it to the other spouse in the divorce settlement?
In Australia, in order to transfer debt from one party to another in a divorce property settlement, both parties must agree to the transfer and it must be in writing. The agreement must be signed by both parties and witnessed by two independent witnesses.
In addition, the court will not approve an unfair or unjust divorce property settlement agreement. If the court believes that the debt transfer is unfair to one party, it may refuse to approve the agreement.
If you have any legal questions regarding debt liability in a divorce, please contact us immediately. Our Family Lawyers will answer your legal questions and provide you with professional strategies to safeguard your rights.
*Disclaimer: The above content is provided as general legal knowledge and should not be taken as specific advice for your individual situation. The law is complex, and we strongly recommend consulting professional legal advice. Canaan Lawyers shall not be held liable for any loss or damage caused by the information contained or omitted in the above content.