30/05/2024
There’s a lot of misinformation as to how property is divided in Australia, so let’s take a look👇
In Australia, property is divided by what is known as “equitable distribution” of the net wealth of the spouses, where the court considers what it thinks is “just and equitable” or “fair” in the circumstances.
Here, property is not divided by a 50/50 split. This division is used in community property states, such as California, and therefore, there are some differences with how property is divided in divorce depending on where you live. 🌏
In Australia, the assets, liabilities and financial resources of the spouses are identified and valued. This includes all property acquired before marriage, during marriage, and after separation, and it is irrelevant if the property is in one spouse’s name, both names or even in someone else’s name.
Assets include anything of value, including real estate, cars, savings, shares, and superannuation for example, and unlike in many other countries also includes your inheritance!👈
Remember, financial resources are also considered, so even property that you do not currently have or possess, but is anticipated to come to you or your control may be considered by the court! This includes future pension entitlements, benefits from trusts, anticipated inheritance, and the list goes on.
Liabilities of one or both parities will be considered including debts, loans, personal guarantees and taxation liabilities to name a few.
The court will consider the financial and non financial contributions of both parties before, during and after the relationship and use this to assess and adjust the division of assets.
Finally, the future needs of parties will be determined by the court, taking into account the age, health, income and earning capacity, care of children, financial resources of new relationships, financial resources of each parties and more.
If you would like more information, give our team a call!📞💬
☎️ 0407 866 899
📧 [email protected]
*the content of this post is general information only and must not be relied on as legal advice, nor does it create a client-lawyer relationship
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