After a separation or divorce, couples can apply to the court for a property settlement if they cannot agree amongst themselves about how their assets and liabilities should be divided.
There is no set percentage or fixed rates as to how assets are divided in Australia. The Family Law Act looks at a variety of factors to determine a result that is just and equitable for both parties.
A property settlement is not automatic when a divorce is granted; a divorce simply ends the marriage legally; financial orders for the division of assets and liabilities are dealt with separately. There is a time limit for when a couple can apply for financial orders. Should you need advice regarding time limits, you should contact our office to discuss.
It is often difficult to predict the result of a property settlement, as the Court assesses each case individually taking into consideration a number of financial and non-financial contributions made by the parties during the relationship.
They will look at the value of current assets and liabilities as well as the contributions each party has made to the relationship since it began.
These contributions are categorised as direct financial contributions such as income earning, indirect financial contributions such as inheritances, and non-financial contributions such as looking after children and household maintenance.
The Court also considers each party’s future needs based on their age, health and income-earning capacity. Based on the party’s contributions and future needs, the court will determine the percentage of the property pool that each party will receive.
If you need advice regarding a property settlement following separation, feel free to contact us to arrange your obligation free appointment.