When a married or de facto couple separate or divorce, a significant part of that process is the separation of assets and liabilities – known in the family law world as “property settlement”. Property settlement in family law encompasses the division of joint assets, protection of assets in only one party’s name, a claim on one party’s assets by another, and any dealings in between. It even involves arrangements as to who gets what piece of furniture or who gets “custody” of a treasured pet.
A property settlement involves identifying and valuing each party’s assets and liabilities (whether held jointly or individually), determining the net asset pool, and then dividing those net assets on a percentage basis, provided it is just and equitable to make an alteration of property interests.
The courts consider contributions that are made at the commencement of, during, and post relationship breakdown.
Contributions can be financial or non-financial
Financial contributions in a family law property settlement are what money and property each party has brought to the relationship. This includes:
- What both parties had by way of assets (or liabilities) at the commencement of the relationship
- What each party brought in by way of income during the relationship
- Whether one party received a windfall such as a lottery win or an inheritance
- Any “wastage” of assets by parties as a non-contribution, such as money spent on gambling or other uses the court considers to be a waste
Non-financial contributions in a family law property settlement are any contributions that are not financial in nature.
They can include:
- Care of children, Household duties
- Undertaking renovations or other works to improve the value of a property
The courts will usually consider a host of other factors to determine property settlement; however, contributions remain a very important part of that process. Usually, if a party has no children or if their relationship or marriage is deemed to be relatively short in duration, substantial financial contributions will carry much greater weight.
If you would like to discuss your unique situation in relation to a separation or divorce, please contact Etheringtons Family Lawyers in North Sydney on (02) 9963 9800 or via the form here.
Our highly experienced and strategic family lawyers are here to help.