You might think 50/50 is a fair split. Or a friend will tell you that their separation had a 70/30 separation of the asset pool. But no two separation settlements are the same because no two situations are the same. Emma Mead of Burke and Mead Lawyers advises that there is no precise formula used to divide property in a separation.
All aspects of your situation need to be taken into consideration when you negotiate your Separation Agreement.
How your split is decided
The Family Law Act 1975 sets out the general principles used in DIY Separation Agreements and by Mediators and Family Lawyers when deciding on what is fair for your situation.
You both need to consider:
- all of your assets and debts – this is your pool of assets
- direct financial contributions by each party to the relationship
- indirect financial contributions by each party such as gifts and inheritances from families
- direct or indirect non-financial contributions, such as renovating a property
- contributions of each party to the welfare of the family, such as caring for children and homemaking
- future requirements of the parties are, taking into account things like age, health, financial resources, care of children and ability to earn.
If you can’t agree and your matter escalates, a judge will use these same principals to decide for you. The decision is made after all the evidence is heard and the judicial officer decides what is just and equitable based on the unique facts of your case.
In general terms, how your assets and debts are going to be shared between you will depend on the individual circumstances of you, your partner and your family.
And for these reasons, your settlement will probably be different from others you have heard about.
The Separation Guide aims to make separation and divorce simpler, more manageable and less stressful. To find out more about how one of our Network Members could support your separation, take our free 3-minute Q&A.
The information in our resources is general only. Consider getting in touch with a professional adviser if you need support with your legal, financial or wellbeing needs.
Pool of Assets Calculator
The Separation Guide's Pool of Assets Calculator is designed to help you identify and value the assets, superannuation and liabilities in your relationship.Pool of Assets Calculator