The end of a relationship can be a highly emotional and challenging time for all parties involved, especially when there are children of the relationship.
You will also want to know what your entitlements to property and finances are, including assets of the marriage or de facto relationship (i.e. the matrimonial home or holiday house) and who will be responsible for liabilities such as a home mortgage or car lease payments.
Dealing with the financial matters following the breakdown of a relationship can feel overwhelming but these matters must resolved to finalise separation and to move onto the next chapter of your life.
Engaging a Family Lawyer to assist you and guide you through this process is an important decision and should be considered at the earliest possible stage of the separation. Being well informed of your legal rights and entitlements will ensure that you can achieve and receive the best possible outcome from your property settlement.
A reasonable split of property between former partners is not always going to involve a 50/50 split of assets.
Splitting the asset pool in half, with an equal amount going to each party may appear to be the “fairest” option for some, however this is not a one size fits all model.
There are many factors that need to be carefully considered and assessed in determining what is a just and equitable split of property, based on the principles set out Family Law Act 1975 (Cth).The Court has a wide discretionary power based on the individual facts of each and every case.
There are five steps which are followed to determine a party’s entitlement to the over all property pool:
- To identify and value all the property that is available for division. This includes all assets, and liabilities of each spouse, in both joint and sole names.
- To consider and compare the financial and non-financial, contributions made by and on behalf of each party to the acquisition, or improvement of property. These contributions include homemaker and parenting contributions.
- To consider the future needs of each party, including:
- Whether either party has the care of a child of the relationship;
- The age and state of health of each of you;
- The income, property and financial resources of each of you;
- The Court will consider which parties has greater future needs or which party has made greater financial or non financial contributions to the relationship. Based on their assessment, the Court will generally make an adjustment to increase the amount a party receives, to represent their greater future needs or contributions to the relationship.
- To consider whether, in all the circumstances of the case, the proposed order is “just and equitable”.
If you are considering entering into Property Orders by Consent or a Binding Financial Agreement with your ex-partner, our Family Lawyers will ensure that your formal property agreement is fair and tailor made to your specific circumstances.
Email us at info@icaalaw.com or call us today to book your appointment on (03) 9842 4474.
Important Disclaimer: The content of this posted article is general in nature and for reference only. The content does not constitute legal advice. Legal advice about your specific circumstances should always be obtained before taking any action in your particular circumstances.
