The purpose of this video is to give you some of my understanding of the basic principles that apply in property settlement matters. There are no mathematical formulas for working out what the result will be and, because of this, it is impossible for anyone to predict with absolute accuracy what the outcome will be.
When lawyers give advice about what a person's entitlements will be, they are basing their advice on their knowledge of decisions in previous cases and from their own experience in cases in which they have been involved.
However, even with such knowledge, all that can really be given is an estimate, which is a range of possible outcomes.
Under the law, courts are required to find a "just and equitable" outcome when couples end their relationship and their property needs to be divided between them.
The term "just and equitable" is a legal expression for what most people would call "fair". So, what courts are required to do is come up with a "fair" result.
The law tells judges what things they need to consider when they are trying to work out what is fair. In all property settlements,
there is a four step process which is followed.
Step 1
The Court will ascertain the net asset pool of both parties.
The net asset pool is the total value of all the assets owned by either or both parties.
The net asset pool includes anything acquired before or during the Relationship marriage, as well as after separation. It is essential that you disclose all of your assets and liabilities to ensure that proceedings are fair.
Step 2
The Court will assess the contributions from you and your partner (both financial and non-financial).
There are many types of contributions that may have been made by either partner or spouse. The Court considers all of the following:
financial contributions
non-financial contributions (as a homemaker or primary carer of children)
gifts, bonuses and inheritance
initial contributions (assets attained before marriage)
Step 3
The Court will assess the future needs of both parties.
The Court takes into account many factors when deciding on the future needs of both parties. these include:
Age and health
Capacity to earn money
The property and assets of each party ( matrimonial / family home, investment property, shares, cars, jewellery, savings, furniture and effects)
New relationships (and new financial circumstances)
Future parenting responsibilities (care and support)
Step 4 Just and equitable
The Court will consider the practical effect of the proposed property settlement, and whether it is "just and equitable" to both parties.
The decision is made taking into account all of these factors.
This information provides general information only and is not provided as legal advice.
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