Many people wonder if they will receive at least 50% in a property settlement after a separation. Contrary to popular belief, the Family Law Act in Australia does not provide for an automatic 50/50 division of property between married or de facto spouses. Instead, it outlines a detailed formula to determine how property settlements should be resolved if the parties involved cannot come to an agreement.
This formula considers numerous factors, making each property settlement unique. The primary goal is to ensure that the division of assets and liabilities is “just and equitable.” This means the law takes into account the contributions made by each party during the relationship and their future needs.
Several reasons might lead to an uneven distribution of assets before a property settlement occurs. For instance, couples often place assets in one party’s name to protect them from creditors, minimize tax obligations, or secure financing. These decisions, made during the relationship for various practical reasons, can affect the final settlement.
The formula used by the Family Law Act considers both financial and non-financial contributions, such as income, homemaking, and child-rearing. It also assesses future needs, including age, health, earning capacity, and responsibilities for children. This comprehensive approach ensures that the property settlement reflects the unique dynamics of each relationship. For some couples, it might mean that each person does receive 50% in property settlement. For others, the percentage split might look radically different.
Given the complexity of property settlements, seeking professional legal advice is crucial. An experienced family lawyer can provide guidance tailored to your specific situation. They help you navigate the process and achieve a fair outcome. At Freedom Family Law, we offer a free initial consultation to discuss your property settlement concerns and provide expert advice on the best course of action.
Get personalised advice on your property settlement. Book in for a free initial consultation by calling us on 07 5409 8000 or click here to book online.