Divorce settlement calculator consists of a list of factors that helps couples understand how property settlement and division of assets will take place after they have divorced.
Another phrase for divorce settlement is “property settlement” in Australia. The phrase financial settlement also refers to the division of assets that takes place after a couple gets divorced or separated.
When discussing divorce settlement calculator, there are many things that fall under this such as assets, liabilities, financial resources, superannuation, and interests etc.
Given below is a list of items that comes under “property” when a divorced couple is seeking a divorce settlement calculator:
- Jointly owned assets;
- Business interests;
- Superannuation;
- Interests in company;
- Family trusts and other trusts;
- Funds or interests that a party has control over
Importantly, while reading up about divorce settlement calculator, parties should also understand that the assets they acquire before, during or even after the separation can be considered during divorce settlement.
Moreover, liabilities can include loans, mortgages, credit card debts etc. It is important to note that de facto couples are also eligible to receive property from each other. In such cases, it is important for parties to prove that a de facto relationship existed between them.
Divorce Settlement Calculator: Important Factors To Consider
In Australia, courts aim to ensure that divorce settlement is fair and equitable. Therefore, as part of divorce settlement calculator, courts will consider a variety of factors before making any binding court orders.
Moreover, each family law matter is unique. There are different circumstances in each family law case. Therefore, courts will need to consider each family’s unique circumstances and make property settlement or divorce settlement orders accordingly.
In this section, we discuss certain factors that influence how parties carry out divorce settlement. These factors are a part of divorce settlement calculator, as parties closely analyse them before making any binding agreements, or before courts make any binding orders.
Notably, there are financial contributions or financial factors and non-financial contributions or non-financial factors that can influence divorce settlement procedures between former spouses.
Additionally, family courts will take into consideration the future requirements of the parties before making any settlement orders.
Given below are some factors that influence division of assets between separated or divorced couples:
1.Financial contributions
- Salary earnings,
- Income,
- Wages,
- Interest,
- Property (such as real property like real estate)
- Superannuation
2. Non-financial contributions
- Spending time to care for the children from the relationship,
- Taking care of the house,
- Making renovations in the house that increased its monetary value
3. Future needs
- Age of both parties,
- Their ability to get gainful employment,
- Their physical health and whether they are healthy enough to be employed,
- Financial resources of the two parties,
- Amount of time the two parties spend/will spend to look after the children from the relationship.
Binding Agreements Vs Binding Orders
Two parties can enter into a binding financial agreement or BFA if they wish to make agreements about the division of assets.
Parties can enter into binding financial agreements either before their relationship, during their relationship or after their relationship has ended. Another name for BFA is prenuptial agreement or prenup.
Binding financial agreements are legally binding. Breaching this agreement can result in the party being penalised. If two spouses are able to reach mutual agreements regarding division of assets, they can approach family lawyers to prepare BFAs.
Importantly, former spouses are always encouraged to come to agreement among themselves, rather than to approach family courts. Where two parties are unable to have healthy discussions, they will be required to attend family dispute resolution or mediation.
Only if these methods fail should they approach family courts. Importantly, for any family law matter, the parties must show proof that they attempted family dispute resolution before approaching the court.
If parties cannot make BFAs, the family court will consider the factors mentioned, use them as a divorce settlement calculator, and make binding financial orders.
Parties have to comply with the orders, and failure to do so will be considered contempt of court. This can result in the non-complying party facing severe punishment such as heavy fines or even imprisonment in extremely serious cases.
Divorce Settlement Calculator And Family Law
Generally, courts find that a 50/50 split is not equitable. As we have seen, there are various factors that influence who gets how much following a divorce or separation. Moreover, each family will have different circumstances, which is why a 50/50 split is not always the best option.
In fact, courts make sure that the property settlement order is fair and just. If it feels that one party will require more property due to health conditions or other reasons, it can make orders accordingly.
Sometimes, the courts also consider the duration of the relationship and if the relationship affected any party’s ability in any way to work and earn income.
In case two parties have agreed to reach agreements by themselves, they will need to discuss all these matters. If both parties are happy with the agreement, they should prepare a BFA to make their agreement legally binding.
BFAs provide certainty to parties and family lawyers always recommend parties to make BFAs among themselves. Many parties prepare a prenup even before marriage.
Importance Of Seeking Advice From Family Lawyers
Family lawyers offer a range of services to all parties who find themselves in the midst of a family law matter. Whether this is to do with preparing financial agreements, mediation or court representation, our lawyers are here for you.
At JB Solicitors, our family lawyers have a wealth of experience in dealing with a variety of family law matters. We have the experience of dealing with contentious divorce matters involving high-conflicts. Moreover, we have also dealt with high net-worth divorce settlements.
For more enquiries about divorce settlement in Australia, please do not hesitate to contact our friendly family law solicitors today.
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