How much will I get in a property settlement?
Not surprisingly, this is one of the most common questions we get asked after a couple of have separated.
There are no hard and fast rules about who gets what following separation, and you shouldn’t make the mistake of thinking that everything will be split 50/50.
There are four basic stages in working out a property settlement:
- Working out the value of any assets. All property is included when working out the value of the property pool. And that is all the property that exists at the time of finalising property settlement, or trial; not simply the property that existed at the time of separation. So, for example, if you’ve bought a business since separating from your spouse, that business is also part of the property pool.
- Contributions made by each person. The court will consider what each person brought to the relationship financially, the income each party earned, any inheritances, gifts, and lump sum payments either during the marriage or after separation. Non-financial contributions are also considered, including parenting and homemaking.
- The future needs of those involved. Courts will look at a range of factors including but not limited to the length of the relationship; the age and health of each person; the income and financial resources of each person; the physical and mental capacity for future employment; the care and needs of any children; and eligibility for any benefits or superannuation.
- Is the property settlement just and equitable. Essentially, is the property settlement fair for all those involved.
Once an agreement has been reached, your solicitor can draft a consent order or a binding financial agreement. If you can’t agree, after you have exhausted all alternative dispute resolution pathways, you can start court proceedings and ask the court for a final order.
It’s also important to remember, there are time limits – if you’ve been married, you have 12 months from the date of your divorce order to finalise your property settlement. If you’ve been in a de facto relationship, you have two years from the date of separation to finalise the property settlement.
If you have questions about separation, property settlements, child support or any other family law issue, contact Michael Lynch Family Lawyers on: (07) 3221 4300 or email: [email protected]
