People commonly review their finances, insurance and household arrangements after a major life change. Legal arrangements deserve the same attention.
Documents and assumptions that were appropriate several years ago may no longer reflect a person’s family, property or responsibilities. Three events in particular should prompt a careful legal review.
Separation
Separation can affect ownership, debts, housing, superannuation and future financial security. One common misconception is that assets are automatically divided equally. Australian family law does not apply a universal 50/50 rule.
Instead, property settlement involves identifying the asset pool, considering each party’s financial and non-financial contributions, assessing future needs and determining whether the proposed outcome is just and equitable.
People should also be conscious of applicable time limits. Holt & Macdonald’s guide to property division after separation explains the principal considerations for married and de facto couples.
Marriage, children or a blended family
Marriage, the birth of a child and the formation of a blended family can all change estate-planning priorities.
A will should clearly appoint an executor, identify beneficiaries and deal with the residuary estate. Parents may also wish to record guardianship preferences for minor children. Blended families often require additional consideration because a simple distribution may not adequately balance the interests of a spouse and children from an earlier relationship.
The guide on how to make a valid will in Victoria covers testamentary capacity, signing requirements, executors, beneficiaries and the risks associated with informal or do-it-yourself wills.
The death of a family member
The death of a relative can create both emotional and legal difficulties. Executors must identify estate assets, manage liabilities and comply with the terms of the will. At the same time, an eligible family member may believe that the deceased failed to make adequate provision for their proper maintenance and support.
In Victoria, such a dispute may involve a family provision application under Part IV of the Administration and Probate Act 1958. Eligibility does not guarantee success, and strict time limits apply.
Holt & Macdonald’s explanation of Part IV claims in Victoria outlines eligibility, evidence, time limits, mediation and possible outcomes.
Legal planning should not be treated as a task completed once and then forgotten. Separation, marriage, children, changing assets and bereavement can each alter a person’s rights and obligations. A timely review can identify problems while there is still an opportunity to address them clearly and deliberately.
