How Are Assets Divided In A Divorce Australia: Affinitas

As an Australian parent, understanding how assets are divided in a divorce can be crucial during this challenging time. While the process may seem daunting, this comprehensive guide will provide you with the information you need to navigate property settlements and protect your rights.

What is a Property Settlement?

A property settlement is a legal document that outlines the financial arrangement between former spouses after a relationship breakdown. It confirms the terms of your divorce, including the division of property, assets, and any spousal maintenance. It's important to note that you do not need to be divorced to resolve your property settlement matters in Australia.

What Assets Are Considered?

In a property settlement, any assets owned by you and your former spouse are viewed as 'marital' property, whether held jointly or separately. This can include:

Real estate
Bank accounts
Investments
Insurance policies
Superannuation
Inheritances
Shares
Family trusts
Vehicles
Personal belongings, such as jewelry

Debts owed by you and your former spouse, such as credit cards, loans, mortgages, and personal debts, are also considered during the property settlement process.

How Are Assets Divided?

Contrary to popular belief, assets are not automatically divided 50:50 in a divorce. The Family Law Act's principles for property settlement do not mention equal asset division between parties. Instead, the court will consider several factors to determine a fair and equitable distribution of your assets:

1. The Value of the Property Pool

First, the court will calculate the total value of all marital assets and debts held in joint or sole names, known as the 'property pool'. This can be a complex process, especially if self-managed super funds or family trusts are involved.

2. Contributions of Each Party

The court will then assess the financial, non-financial, and homemaker contributions that each party has made to the relationship and the property pool.

3. Current and Future Needs

The court will also consider the current and future needs of both parties, taking into account factors such as age, health, income, and childcare arrangements.

4. Just and Equitable Division

Finally, the court will determine whether the resulting property settlement is just and equitable, ensuring that the division of assets is fair to both parties.

Important: While a 50:50 split is possible, it's generally the case that one party receives a larger share of the assets.

Do We Need to Go to Court?

No, you only need to go to court to divide assets in a divorce or de facto separation if you are unable to reach a fair agreement by other means. In Australia, assets are most often divided using an agreement between both spouses. If you cannot reach an agreement, you can try mediation, where an independent mediator will work with you to resolve any disputes.

If both methods prove unsuccessful, it's advisable to seek the support of an experienced family lawyer, who can help you negotiate an agreement. Once you have agreed on how to divide your assets, you can either get a Consent Order from the court or create a Binding Financial Agreement.

Important: Going to court can be a time-consuming and costly process, so it's best to try to reach an agreement before your settlement gets to this stage.

Get Trusted Legal Support

Understanding how assets are divided in a divorce in Australia is crucial for reaching a fair agreement that will benefit both you and your former partner. Our experienced family lawyers at Affinitas Legal are here to guide you through the legal complexities of asset division, ensuring that your rights as a parent are protected. Contact us today to learn more about your options and how we can support you during this transition.

Expert Family Lawyers Across Australia

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Family Court of Australia Sydney: Law Courts Building, Queens Square, Sydney NSW 2000

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Federal Circuit Court Perth: 1 Victoria Avenue, Perth WA 6000
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Federal Circuit Court Adelaide: 3 Angas Street, Adelaide SA 5000
Family Court of Australia Adelaide: 3 Angas Street, Adelaide SA 5000