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Cutting the Property Pie
CUTTING THE PIE: HOW THE LAW DEALS WITH THE SEPARATION OF PROPERTY
Following the breakdown of a marriage, people will often need advice about how to divide their property. Family law property settlements involve a four-step process. Consideration of these steps will enable you  to better protect your rights and negotiate a reasonable outcome with your ex-partner.
1. Firstly, you need to ascertain the value of your combined assets including savings, real estate, shareholdings, superannuation and business interests. You must include assets held individually by you or your partner, as well as jointly held assets. The aggregate of your assets and liabilities is referred to as the total “asset pool”.
2. The second step is to weigh-up the contributions made by each party to the total asset pool. This includes financial as well as non-financial contributions, such as housework and child-rearing. At this step, the law will take into account the assets that each of you held independently, prior to the marriage. Any “special contributions” such as gifts or inheritances need to be considered.
3. Thirdly, the law will look at the future needs of both you and your partner. Factors such as your age, health, earning capacity and responsibilities for children all weigh into the assessment of your future needs. For example, if you have a lower earning capacity than your partner and you have the primary care of your children, then you will most likely be entitled to a greater weighting for future needs.
4. Finally, the law requires that property settlements to be “just and equitable” on the whole. Generally speaking, this legal test operates as a safeguard to ensure that property settlements are fair to both parties.
A family lawyer can assist you to reach a private agreement with your partner for the division of property or, if necessary, can represent you before a court to ensure that your interests are protected.
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