Top 5 things about property settlement in Australia

While it is a common belief that after a separation or end of a relationship everything gets divided equally. It is not the truth. Especially not in a country like Australia.

Australia has a very different approach when it comes to property settlement between 2 parties. In fact, in a case study, it was found out that, an average share of the wife is 55 percent of the total financial resources at the time of separation.

But how does this work? This article will explain you everything.

This type of dispute is basically solved at two places which solely depends on the choice of the parties involved, the family court or the federal court.

Also, you are not entitled to a free legal representative in Australia. You have to pay a lawyer for representing you in court. There are a lot of firms you can opt for in this case but if you choose a renowned firm like Gold Coast Lawyers, your chances of winning can increase.

Now, let’s understand the 5 steps how courts decide to settle a property dispute.

1. Knowing the total asset available for division

The first step the courts take in the division assessment is knowing how much property both the parties are holding, jointly and individually.

You should know that property is an inclusive term here that goes for real estate, vehicles, bank accounts, furniture, and other items understood as “property”

It also takes into consideration how much each party has exercised its right and control over every asset.

In simple words, the ratio of investment and control over each asset by both parties is calculated.

The following process in the course of the judgment is based on this single step, therefore it is always advised to provide all crucial information regarding this to the court.

2. Considering if it’s just for division or not

In every case, the courts first decide if it’s fair and just divide each asset between the involved parties before assessing the contributions.

 For properties having joint ownership, they give an option to both parties if they would like a fair split. Both of their answers are noted.

After, coming to a decision, they move on to the next step.

3. Assessing the contributions from both parties-

The courts then take into consideration every financial, non-financial, and welfare contribution that was made by both of the parties. At the commencement of the relationship, during the relationship, and post-separation. It is never presumed to be 50/50.

All the property brought jointly during the relationship, inheritances and gifts are classified under financial contributions.

Whereas, getting your house renovated, gardening and unpaid work in the family comes under non-financial contributions.

Apart from the finances, your service as a parent or as a homemaker gets included as a welfare contribution towards the relationship. Based on how much a partner a contributed in different aspects of the relationship, the assessment is finalized.

4. Understanding each party’s future needs

It is a natural thing that one of the parties involved in the relationship has a far off better financial condition than the other.

if the properties are distributed equally, the dependant one is going to suffer more. So, after the courts assess all the contributions by both parties all along their relationship, they decide which party should receive more so their future does not get impacted.

A few things that are considered in this case are:

The age and mental health of the partners

The financial conditions of both the partners independently

If any partner has got the primary responsibility of a child (if any) who is under 18.

5. Consider again if the division is just or not

After all of the above decisions have been made, the courts again decide whether the adjustments made are fair and just.

This step is done to ensure both parties are content with the decision made.

However, if any one of them has a difference of opinion, they are free to say that. The courts then take the review the decision and make further adjustments if need be.

After final judgment, the court closes the case and orders both of the parties to do the changes as per the decision made.

Over to you…

Settling a property dispute is not easy. In some cases, the situations have turned pretty abusive. In other cases, the dependant ones used to get cheated on at the time of distribution. That’s why with this process Australia wants to make a difference.

And it certainly is.