Injury payouts and property settlements
Property settlements are difficult to calculate at the best of times, but what happens when one spouse has received a large personal injury payment?
In cases like this, there’s more than finances to take into consideration, but also the impact on the family in regards to care needs and stress.
Courts look at a number of factors when determining a property settlement, including the future needs of each person involved. This includes:
- The age and state of health of each person.
- Whether the person has the care and control of the children of the relationship under the age of 18 years.
- The standard of living which is reasonable.
- The income property and financial resources of each of the people involved, and the physical and mental capacity of each party for appropriate gainful employment.
- The duration of the marriage or relationship, and the extent to which it has affected the earning capacity of either party.
In a recent case, a couple split up after 22 years together. They had three children, the youngest of whom was 12 and had been diagnosed with autism and severe intellectual impairment. He would be dependent on a parent for care for the rest of his life.
After separation, the husband was involved in a serious motorbike accident and sustained brain trauma. It was found he would never be able to work again and received an insurance payment of $1.4million paid into his superannuation.
The court initially found the husband had made the greater financial contribution to the relationship, and the property settlement was made 75% in his favour, and 25% to the wife.
However, with both parties unlikely to work again – the wife due to carer obligations for her youngest child – the wife received an adjustment in her favour, with the property pool divided 40% to the wife, and 60% to the husband.
Payments made in the event of permanent disability are sometimes treated differently. Even assuming a payment for disability was made from a joint fund, the essential requirement for the payment would be the personal misfortune of the spouse to whom the payment was made. And in some cases, this misfortune could be considered itself to be a form of contribution, and a fairly significant contribution at that.
If you need advice on property settlements or any other aspect of family law, please contact our office on: (07) 3221 4300 or email: [email protected]
