In family law matters, knowing your entitlements and how to divide your assets with your partner can be difficult to navigate. Contrary to popular belief, it is not necessarily 50/50.
There is no automatic entitlement to half of the assets after separation, nor is property that is not in joint names automatically excluded from the assets to divide (known as the “asset pool”). Kerry Ktenas briefly explains the Court’s 5 step process.
To determine your entitlements after separation, the Court adopts a 5-step process. That process can be summarised as follows:
- STEP 1 is to determine whether it is appropriate to adjust the financial interests of you and your spouse or partner.
- STEP 2 is to identify all of your assets, liabilities and financial resources – the asset pool. This can include property in joint names and individual names.
- STEP 3 is to consider your respective contributions to the accumulation, conservation and improvement of the asset pool. Contributions can be financial and/or non-financial, direct or indirect, including contributions as a homemaker and/or parent and primary income earner and include any money gifted by family members and/or friends.
- STEP 4 is to assess your respective future needs. Some relevant factors include your age and state of health, income or income-earning capacity, whether you have the primary care of a child under 18 years, and the duration of your relationship.
- STEP 5 is to ensure that if one of you receives more of a percentage of the asset pool, that adjustment is appropriate and fair.
We can assist you in determining what your entitlements might be and document any settlement reached between you and your former partner. Get in touch with us today on (03) 8602 2000 or admin@spfamilylawyers.com.au.
