This is the start of a three part series on property settlement and the consequences of a breakup.
This applies to marriages and de facto relationships, both same-sex and opposite-sex.
Basically, the Family Law Act 1975 (Cth) looks at two things – contributions and fairness factors.
This first post examines contributions.
I need a property settlement. What do I need to do?
First, obtain legal advice. Property settlements can be surprisingly complicated.
It is important that you understand and consider key issues including:
- Providing “full and frank” disclosure of your assets and liabilities.
- Your financial contributions to the relationship.
- Your non-financial contributions to the relationship.
- Your contributions as a parent and/or homemaker.
- The financial and non-financial contributions of other parties.
- The future needs of parties.
The court will consider these matters when making (or refusing) a property order.
Contributions of the parties
Once the relationship assets have been identified, the contributions of each party must be assessed.
Marital contributions are considered in accordance with Family Law Act 1975 (Cth) section 79. Section 90SM deals with contributions to de facto relationships.
Contributions are:
- Either financial (direct or indirect) or non-financial, or relate to parental or homemaker duties.
- Made before, during or after the marriage/de facto relationship.
Financial contributions may include:
- Earnings;
- Winnings;
- Assets brought into the relationship;
- Termination payments;
- Superannuation;
- Gifts from parents; and
- Other contributions to the “acquisition, conservation or improvement of any of the property of the parties”.
Non-financial contributions could include a party’s role:
- As a money manager;
- Providing care to their partner; and
- Other contributions to the “acquisition, conservation or improvement of any of the property of the parties”.
Contributions made for the welfare of the family and any children of the relationship include:
- Parental duties; and
- Homemaker duties.
The weight given to each party’s contributions will impact the split of the property pool. A party with greater contributions may receive a greater share of the relationship assets.
Contributions also need to be assessed with reference to the factors outlined in Family Law Act 1975 (Cth) section 75(2).
Get Expert Advice
If you are currently going through a separation or divorce, or if you need legal advice about a property settlement, then contact Greg Martin or Jacqueline Wainwright on (02) 9687 9322.