And if you’re curious to know, you’re in luck! This article’s purpose is to give readers a better understanding of how Australian courts divide a couple’s assets when they separate or get divorced. Furthermore, the article also explains how the Family Law Act evaluates financial and non-financial contributions.
The Family Law Act of 1975 gives the courts the authority to modify the parties’ property interests if they determine that doing so is just and equitable. Factors the courts will take into consideration include the contributions of each part – both financial and non-financially, as well as their future requirements.
A divorce property settlement can be challenging because of this.
It can be arduous and time-consuming to verify the financial contributions made by each party, but if there is a clear money trail, it is simple to figure out how much each party contributed.
Placing a value on non-financial contributions can be challenging due to the various factors involved in determining the value.
The cost of labor will be factored in by the court when assessing a non-financial contribution to the project.
For instance, if you rebuilt the fence of your conjugal house, you should seek a quote to assess how much money was saved as well as how much the new fence raised the property’s value.
Property Settlement Calculator
We have created a property settlement calculator to help you estimate how much money you may keep after separating from your partner using our knowledge of family law and property settlements.
Knowing the amount may help you and your ex-spouse better negotiate your divorce settlement and help you avoid the pricey court process.
When deciding on a divorce property settlement between separated couples, the court uses a four-step process.
STEP 1 – Establish the Asset Pool
Both parties must review their financial records to determine their respective net worth as the first step in settling a divorce. This entails reporting the contents of your bank accounts, the worth of the properties you possess, the value of the shares you own, and any potential holdings in trusts, companies, or businesses.
STEP 2 – Identifying What Contributions were Made During the Marriage
Contributions can be both monetary and non-monetary. That said, anything that contributed to keeping the home, the family, and the relationship together can be included.
Wages, tax liabilities, donations, and inheritances all count as financial contributions.
On the other hand, doing housework, taking care of the children from the relationship, and remodeling the home are examples of non-monetary contributions.
STEP 3 – Assessing What are The Future Needs of The Parties
The court then makes what is referred to as “adjustments” after deciding on the various portions of property based on the aforementioned contributions.
The adjustment takes into consideration various elements, including each party’s future demands.
The courts consider several factors in this case, including future earning potential, each party’s age, health, and financial resources as well as their employment prospects, responsibility for the care of their children after their separation and divorce, the duration of their marriage, and the degree to which it has impacted their potential for future employment.
STEP 4 – Is it Fair?
Whether or not you get to keep some of your assets and whether or not they belong to your ex-partner will be decided by the court.
When it comes to their financial situation and prospects for income after a divorce, women with minor children may be at a significant disadvantage compared to men. Furthermore, particularly vulnerable to a sharp decline in living standards are older women living alone following a divorce and single mothers. With that, the court can order a bigger adjustment in their favor.
How can our Property Settlement Lawyers Assist you?
Our vision is to offer you the service that is beneficial for you, but before going to court, we always attempt to settle the situation with the other side.
Our team of experienced property settlement lawyers may assist you with formalizing an agreement that you have established to make it valid and legally binding and to ensure that there will be no additional financial claims to be made.
We may negotiate arrangements with your ex-spouse or their attorneys and represent you in family court procedures whether you want to start the proceedings yourself or are a responder.