When separating why isn’t it just a 50/50 property settlement split?

When considering a property settlement there are many factors to be considered but there are four key steps that the Court must consider in the property settlement split. In this blog we summarise what these are.

The four key steps the Family Court considers in a property settlement split

1. Determine whether, in all the circumstances, it is just and equitable to make an order adjusting property;

2. Identify the assets, liabilities and financial resources including superannuation.

The assets, including real estate and superannuation, must be valued at the date of the settlement and not at separation. Generally, assets such as real estate, business, and some superannuation interests are valued by experts in the area.

Liabilities include a mortgage over the family home, car loan, loans from third parties such as parents. In this circumstance, the parent lending the money should have a loan agreement in place, keep a record of the money advanced to the child and consider steps that can be taken to protect their interests.

3. Assess the parties contribution, including financial contributions, non-financial contributions, contributions as homemaker and parent;

4. Consider factors set out in the Family Law Act including:-

• The age and health of each of the parties;

• The income, property, and financial resources of each of the parties;

• Whether either party has the responsibility of care or control of a child of the marriage younger than 18 years;

• The eligibility of either party for a pension, allowance, or benefit;

• Reasonable standard of living in all circumstances;

What happens once all the factors have been considered regarding the property settlement split?

Once all the relevant information and factors have been identified it is then possible to consider overall settlement. There is rarely a precise figure for settlement but rather a range within which the settlement will occur.

As the valuation of assets, assessment of contributions, and the parties’ financial positions are considered at the time of settlement discussions it is very important to be aware of the implications of delaying, or not delaying, a settlement.

For more information on family law settlements, we have a detailed guide that can be found here. If you would like to speak with one of our family law specialists regarding a settlement question then please call us on 03 95960222, your initial consultation is complimentary.

Authors: Sanaz Naimi Roshan, Accredited Specialist in Family Law & David Edney, Accredited Specialist in Family Law & Independent Children’s Lawyer