Although many divorces have long drawn out battles in relation to property, it can actually be a very simple four stage process in property settlements.
Firstly, establish the asset pool. This is made up of assets such as property, cars and shares minus the liabilities such as debts and mortgages. This will leave you the amount to be divided.
Secondly, the contributions of each party are taken into account. The financial, non-financial, parenting and homemaker contributions are all recognised by the Court. Financial can be what was brought into the relationship, as well as earnings throughout. The parenting and homemaking contribution can generally be worked out by looking at the financial contribution made by one party, whilst the other party takes children to school and attends to tasks which restrict them from earning an income. This is generally seen as an equal contribution.
Thirdly, the current and future needs are taken into account. Factors such as age, health, earning capacity and providing for children are taken into account.
Fourthly, who gets what. A pool worth $400,000.00 may include a house worth $280,000.00. In this situation, one party will be receiving over 50%, therefore a payout may be needed, or the property must be sold.
While this all sounds simple, in reality it is one of the more emotionally charged situations you could ever experience.
If you have any questions you would like answered either confidentially or via this medium, please email us at office@mjolegal.com.au
This is intended for general information and does not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought.