It can be a difficult time emotionally to be going through a separation, and having a clear idea of what will occur with belongings can be another pressure amidst a pressured time. If you’re thinking of separating or are separating, being well-informed of your entitlements and obligations under the law of Australia can be useful for making informed decisions regarding your future finances.
Australia possesses conventional asset division legislation, which can be substantially unlike that of other locations. These must be familiarised, at least if there are foreign relationships or foreign assets.
Australian Laws for Dividing Assets
Australia comes under the jurisdiction of the Family Law Act 1975, which applies for partitioning of property when couples break up. It applies to couples that are, or are having, a qualifying de facto relationship.
The Australian system doesn’t, of course, divide property 50/50 automatically. Courts, instead, complete a four-step procedure in order to come up with a “just and equitable” separation. It looks at the individual relationships, the individual situations of the family.
In Australia, the law requires that the asset pool be of everything that was received prior to, during, and after the relationship. This is a wide approach, namely, inheritances, gifts, even items received after being separated, are subject to being divided.
Divisions of Assets
The court considers a wide range of pivotal factors before deciding the way the property is going to be distributed. Both parties’ contributions, direct contributions like money, for e.g., salaries, but even indirect contributions, like gifts from other relatives, or even inheritances, are taken into consideration.
Non-monetary contributions are given significant regard in Australian family law. Homemaking, childcare, and contributions to a partner’s career advancement are examples of these contributions. It is considered that these contributions are of the same value as the product of a marriage.
Future needs are another prominent characteristic of partitioning of property. Needs of a party for age, health, income-earning, and childcare are considered by the court. For instance, a carer of young children may be awarded a larger share of property so that regular needs for accommodation and care can be met.
International Laws and Dividing of Assets
International legislation can be quite different from Australia when it comes to asset division. Europe operates on a principle of community of property for the most part, so that objects acquired while being married are automatically shared equally between the two spouses. This can bring more predictable 50/50 divisions.
The USA is varied, depending on State. States of community of property, such as California, divide matrimonial belongings equally. States of equitable division, which are the majority, apply a host of factors, similar to Australia, but the factors, together with weighting, are different.
With that said, countries such as the United Kingdom stress fulfilling both parties’ fair needs significantly, especially where a lot of wealth is being distributed. This can see unequal allocations prevail which favour financial security rather than precise contribution-based allocations.
With cross-border relationships, for couples, jurisdiction refers to which country’s law is going to be applied. Whether the property is situated or where the couple was married are all factors that determine jurisdiction. Be sure to contact a professional for guidance on international family law matters, if this applies to you.
Dividing Assets Successfully: Navigating
Working out how property is divided after separation requires a detailed study of the law of Australia, accompanied by a comparison of any international dimension of your case. Since the system prioritises equality but not automatic equality, each case is assessed on a personal level.
In the event of a separation, seeking professional legal advice early is a must. A lawyer for your family can help you discover your entitlements, work through everything that matters of your relevant belongings, and facilitate negotiation of a reasonable outcome that guards your economic future.
Note that asset division forms a section of separation. It is worth being knowledgeable of the process so that stress might be reduced, and one can be well-prepared for the future journey.
