Property (financial) settlement refers to the division of a couple's financial resources on separation.
In Australia the Family Law Act (1975) regulates the division of property or liabilities (debts) of people who have been married.
However, if you are not married i.e. in a de facto relationship your local state laws will determine what happens.
For more information on the legal considerations of
Property Settlement click here.
What Is Defined As Property?
Property can include:
- Real estate
- Land
- Savings in banks, building societies, credit unions of other financial institution
- Investments
- Life insurance policies
- Businesses including partnerships or companies
- Household contents
- Superannuation.
- Any personal items
Any debts also need to be calculated and taken into account.
What Is The Law Regarding The Division Of Assets?
When deciding how matrimonial property should be divided the law takes a number of things into consideration.
1. The financial contributions made by both parties. This will include:
- Property owned at the time of marriage
- Money contributed before or during the marriage
- Gifts and inheritances
- Efforts put into building up and running a business
2. Non-financial contributions such as:
- Work done on the property
- Being a homemaker and parent
3. The future needs of both parties. Factors that influence this include:
- The age and health of both parties
- The ability for each individual to support themselves
- Whether you're supporting other people (such as children or relatives)
- Whether you're being supported themselves (such as a new partner or parents)
- Superannuation entitlements
What About Superannuation?
Recent law changes (2001) have resulted in superannuation now being regarded as property versus a financial resource. This means that superannuation is now treated as an asset during a property settlement and that it needs to be split.
it's important for you to understand the implications of splitting your superannuation as it could be the difference between you enjoying your retirement years and being financially independent or relying on others.
For more Iinformaiton on
Superannuation click here.
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