The Family Court aims for a just and equitable division of assets when a marriage or de facto relationship ends, but this doesn’t automatically mean a 50/50 split. The court considers a range of factors to achieve a fair outcome, and the process can be complex, particularly when significant assets are involved.
What assets are included?
The property pool generally includes all assets owned by either party, regardless of when or how they were acquired. This can include real estate, vehicles, shares, superannuation, and even assets owned before the relationship began. The court will consider the contributions made by each party, both financial and non-financial, to the acquisition, conservation and improvement of these assets.
How does the Court determine contributions?
The court assesses contributions to the relationship, considering both financial contributions (like income and property brought into the relationship) and non-financial contributions (such as homemaking and parenting). Section 94 of the Family Law Act 1975 outlines the considerations for determining these contributions. The length of the relationship is also a significant factor; longer relationships generally see a more equal division of assets.
What about superannuation?
Superannuation is considered property for the purposes of a property settlement. The court can make orders splitting superannuation interests, often through a superannuation splitting order. This allows a portion of one party’s superannuation to be transferred to the other party’s superannuation fund.
The enforcement gap
Even with a court order, enforcing a property settlement can be challenging. If a party fails to comply with the order, further legal action may be required to enforce it, which can be costly and time-consuming. The Family Law Act 1975, section 96, allows the court to make further orders to ensure compliance, but this doesn’t guarantee a swift resolution.
Questions to consider
- What documentation do I have to support my financial contributions to the relationship?
- How will the court value assets like real estate and superannuation?
- What are the potential tax implications of a property settlement?
This information is general in nature and does not constitute legal
advice. For advice specific to your situation, contact JB Solicitors.