After the breakdown of a marriage or de facto relationship, the parties are usually left unsure about their financial and property entitlements.
There is a myth that there is a presumption that assets, or commonly referred to as the “property pool” should be divided equally between the parties. However, there is no automatic entitlement in property and financial matters.
Each parties’ entitlement to the property pool depends on their circumstances before, during and after separation or divorce.
There is no presumption of a percentage entitlement in relation to a property or financial settlement.
What is taken into account when determining a property/financial settlement?
In Australia, the Family Law Act set out the determining factors for how property and financial matters are to settled. There is no precise formula which to be applied as the settlements are based on all of the facts.
When considering property and financial settlement, the following are considered:
Remember that there is no presumption of a 50/50 split as a starting point and that each matter is decided upon the particular circumstances of each case.
The Family Court can make Orders that are just and equitable in relation to division of property.
Separating parties should obtain independent legal advice about their entitlements at the earliest opportunity.