Property Settlement
Financial/Property Settlement
When making orders altering property interests under section 79 Family Law Act (marriages) or section 90SM Family Law Act (de facto), the Court engages in the Four step approach.
The Four step approach has been applied by the Courts as the best method of determining Financial/Property applications.
The Four step approach includes:
- Determining the assets, liabilities, and financial resources of the parties, This means working out what assets each party has individually and jointly, and what debts each party has individually and jointly.
- Determining whether based on the contribution of the parties, there should be an alteration to the interests of the parties, This can be direct or indirect financial contributions to the property of the parties, and can include:
- contributing wage and salary earnings or gifts and inheritances from family,
- non-financial contributions to the property of the parties,
- homemaker and caregiver contributions, such as caring for children.
- Determining whether there should be a further alteration based on the future needs of the parties, Section 75(2) Family Law Act lists a range of factors relevant to considering the future needs of the parties. Some of these include:
- the age and health of the parties,
- the financial and property resources of the parties,
- who will have primary or the majority of caring responsibilities for any dependents or children of the relationship,
- responsibilities of either party to support any other person,
- pension/benefit eligibility,
- a standard of living that is reasonable in the circumstances,
- the duration of the relationship and how it has affected the earning capacity of both parties,
- the ability of the parties to earn or gain employment which will support them financially,
- the extent to which maintenance would assist a party increase their earning capacity, for example, through undertaking education or training,
- the financial circumstances of a person with whom a party is cohabitating,
- the amount of child support payable by each of the parties,
- any relevant fact or circumstance.
- Determining whether the proposed orders altering the parties’ interests to the asset pool is just and equitable.
The above should not be treated as legal advice but general information.
To obtain advice on your RIGHTS, call AMA Legal on (02) 8610 3764 or 0431 630 158.
