Dividing Gold Investments : Can the Family Court of AU Intervene
The Family Court of Australia welcomes the participation of family court lawyers perth couples engage as counsels to help them navigate divorce proceedings. While the Family Court wants to simplify the process of dividing the pooled assets of the married couple by awarding each spouse half the value of every marital asset.
However, certain assets, like gold investments are not as straightforward to divide in half. The value depends on the kind of gold investment recognized as a conjugal asset. Although it is the intent of the Family Court of Australia to divide marriage assets equitably, it does not necessarily mean dividing equally. Apparently, when it comes to gold investments, the court has to take into consideration the reasons why a spouse will not agree to a 50-50 division of gold assets. This is especially true if a husband or wife was into the gold buying or investing activity prior to marriage. Complexity arises if he or she commingled the revenue and expenses related to the gold purchases or investments with the financial and economic circumstances of both spouses and that of their union.
Through the help of a family court lawyer representing each couple, both parties must privately arrive at an agreed distribution scheme to formalise a Binding Financial Agreement that the court will review and approve.
What Happens if a Divorcing Couple Fails to Arrive at a Binding Financial Agreement
If despite the guidance of their family lawyer, the couple refuses to recognize and accept any distribution scheme as fair and equitable, they have the option to ask the Family Court to rule and decide which asset distribution scheme is fair and just. The Family Law Act discourages prolonged divorce proceedings since they are costly.
If so, the proceedings in the division of the marriage assets will become public. The Family Court might even find it necessary to call to the stand, family members and friends to serve as witnesses. Their testimony could help the presiding magistrate determine a fair and equitable division.
Family debts will also be taken into consideration, as it could be a deciding factor for increasing the share of the spouse who will bear the burden of settling the family’s financial obligations.
However, bear in mind that in such cases, the Family Court’s order is final and is not contestable. In which case, spouses have no other choice but to follow the court orders.
Popular Types of Gold Investments in Australia
During the past two decades, gold investments have been reported as bringing in as much as nine per cent (9%) in annual returns to gold investors. Moreover, they can outperform most assets in storing value due to their indestructible characteristics.
However, due to the volatility of economies in the present time, many investors seek a more liquid form of gold investment in addition to physical gold. Liquid here denotes the gold investment can be easily convertible into cash.
The following are some of the most popular types of gold investments in Australia:
1. Buying physical gold usually in bullions in the form of coins and bars.
2. Investing in gold by buying shares from companies engaged in gold mining activities.
3. Investing in gold-oriented Exchange Traded Funds (ETFs) where profits are realised by anticipating the shift in the prices of gold ETFs.
Although the price of gold is generally stable, the value could increase in relation to certain events that cause other investment instruments like stocks and bonds to decline in value. On the other hand, in the event gold mining sites produce gold in excess of current demand, the price of gold could spiral on a downward trend.