Property settlements are a crucial aspect of family law, as they play a pivotal role in ensuring a fair distribution of assets and liabilities when a relationship breaks down.
Our legal system recognises the complexities of modern relationships and provides a structured framework to determine property settlements.
This article will delve into the key factors and processes that govern how property settlements are determined in Australia.
The Family Law Act 1975: A Foundation for Fairness
The cornerstone of property settlements lies in the Family Law Act 1975. This legislation provides a comprehensive framework for the division of property and financial resources between parties following the breakdown of a marriage or de facto relationship.
The Act encourages parties to reach an agreement without resorting to litigation, emphasising alternative dispute resolution methods such as negotiation, mediation, and collaborative law.
Key Principles Governing Property Settlements
- Just and Equitable: The Court’s primary objective in property settlements is to ensure a division that is just and equitable. This does not necessarily mean a 50-50 split of assets; rather, it entails assessing each party’s contributions and future needs.
- Contributions: The contributions made by each party are assessed, including financial contributions (such as income, property, and gifts) and non-financial contributions (such as homemaking, childcare, and supporting the other party’s career).
- Future Needs: The Court takes into consideration the future needs of each party, such as age, health, income-earning capacity, care of children, and financial resources. For instance, a party with a lower earning capacity might receive a larger share to meet their ongoing needs.
- Superannuation: Superannuation, or retirement savings, is also considered a part of the property pool. The Court can split superannuation entitlements between parties to achieve an equitable distribution.
If you would like to understand where you stand with your case, contact our Family Law Partner, Nicci Bilinsky on (03) 9481 2000 or info@tauruslawyers.com.au.