Property settlement after divorce in Australia

When a marriage ends in divorce, one of the most complex and emotionally charged issues couples face is the division of their property.

In Australia, this process is governed by the Family Law Act 1975 (for de-facto couples in states outside of Western Australia and married couples in any state of Australia) and the Family Court Act 1997 (for de-facto couples in Western Australia), which outline a specific legal framework to ensure a fair and equitable distribution of assets and liabilities.

Identifying and valuing the asset pool

The first step in the property settlement process is to identify and value all assets, liabilities, and financial resources of both parties, regardless of when they were acquired – before, during, or after the marriage. This includes:

• Real estate
• Vehicles
• Investments (shares, bonds, etc.)
• Businesses/business interests
• Superannuation/pensions
• Savings and cash assets
• Personal property (jewellery, collectibles, etc.)
• Debts (loans secured by way of mortgage, other loans, credit cards, etc.)

Assessing contributions

Once the asset pool is established, the court evaluates the financial and non-financial contributions made by each party at different stages of the relationship:

• Initial contributions (assets brought into the marriage)
• Contributions during the marriage (income, homemaking, parenting, maintenance/improvement to property etc.)
• Contributions after separation (if applicable)

Considering future needs

The court also takes into account the future needs of each party, assessing factors such as:

• Age and health
• Income and earning capacity
• Care of children under 18 from the relationship
• Ability to become self-supporting

Adjustments may be made to the division of assets based on these future .

The practical effect

The court considers the practical effect of the proposed property division to ensure it is just and equitable for both parties. This step aims to achieve an outcome that is fair and reasonable, given the specific circumstances of each couple.

It’s important to note that there is no strict formula or presumption of equal division in Australia. The division of assets is determined on a case-by-case basis, considering the factors outlined above and the unique circumstances of each couple. The overarching goal is to achieve a fair and equitable outcome for both parties.

The property settlement process after divorce can be complex and emotionally taxing. It is highly recommended that couples seek legal advice and representation to navigate this process effectively and protect their interests.

Contact our experienced family law professionals to help you work towards a resolution that allows you to move forward in a financially secure manner.