Splitting Up? Your Guide to the Aussie Way of Dividing Family Property
Understanding Your Entitlement in a Divorce Property Split
Divorce can be a challenging time, especially when it comes to dividing assets. Knowing how the court decides on property settlements can help you prepare better. Here’s a guide on what you might expect and how to navigate this process.
Who Decides the Division of Property?
Most property disputes in divorces are settled by mutual agreement. However, these agreements are often influenced by what the parties think the court might decide if they don’t settle. As a result, understanding how the court approaches property division is crucial.
The Pool of Assets
The court considers all assets owned by both parties, no matter whose name they are in. This includes assets acquired before the relationship and windfalls like inheritances. The total value of these assets is referred to as the "pool of assets."
Tips for Understanding Property Division:
1. Consider Equal Contributions
The court starts with the assumption of equal contributions from both parties. This means if both partners have similar earning capacities and there are no children, a 50-50 split is likely.
2. Adjust for Financial Contributions
If one party brought significant assets into the marriage, they might receive a larger share of the pool. However, over long marriages, this factor becomes less important.
3. Evaluate Non-Financial Contributions
The court values non-financial contributions like homemaking and childcare. The contributions of a stay-at-home parent are seen as equally important as those of the primary earner.
4. Account for Superannuation
Superannuation is included in the asset pool. The court can split superannuation benefits even if they cannot be accessed immediately.
5. Manage Complex Assets
Assets held in companies or trusts controlled by either party are also considered part of the pool. The court has ways to transfer the benefits of these assets appropriately. They may also be deemed a resource available to one party and as such would not need as much of the joint asset pool because they have access to other resources.
Practical Scenarios
1. Equal Split
If both parties have contributed equally in all respects, a 50-50 split is common. This applies if there are no significant disparities in earning capacity, needs or contributions.
2. 60/40 Split
In cases where one party has a greater need, such as having custody of children, a 60/40 or other unequal split might be applied. However, this is not a fixed rule and varies with circumstances.
3. Pre-Owned Assets
If one party brought significant assets into the relationship, they might receive a higher percentage of the pool. But as the marriage length increases, this factor diminishes in importance.
4. Parenting Contributions
In cases where one partner’s earning capacity is affected by their role as a primary caregiver, they may receive a larger share to reflect their contributions.
Dealing with the ins and outs of divorce and splitting assets can be a lot to handle, but it's crucial to know what affects your share of family assets. If you've got any questions, don't hesitate to get in touch with WebWills – we're pros in Aussie family law. Talking to legal experts and teaming up with folks who know their stuff can guide you in making smart choices, and making sure your assets are divvied up fairly in this tough situation. Just remember, each divorce is different, and the percentages may change based on your situation and Aussie laws.
DISCLAIMER
This is a commentary published by WebWills for general information purposes only. This is not meant to be taken as particular advice. You should seek your own legal and other advice for any question, or any specific situation or proposal, or get in touch with the writer at http://webwills.com.au before making any final decision. The content also is subject to change. A person listed may not be admitted as a lawyer in all States and Territories.
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