Financial matters

The four step process taken by the Court in assessing your property entitlements.
Documenting a financial settlement by way of Court Orders of a Financial Agreement.
What is maintenance?
The relevant law with respect to property division is found in Sections 79 and 75(2) of the Family Law Act 1975.

If asked to determine your respective property settlement entitlements the Court will apply the following four step process:

First, the Court would first examine the size of the asset pool available for distribution (including superannuation).
The Court would then consider the contributions to the acquisition conservation and improvement of the marital property. When assessing contributions the Court will look towards such factors as the direct financial contributions made by the parties (for example wages brought in and used for mortgage payments) and the indirect financial contributions of the parties (for example cooking, care of the children, cleaning). The weight given to these factors often depends on the amount of assets available for division.
The Court will then look to the matters set out in Section 75(2) of the Act which includes such factors as the capacity of each party for gainful employment, the age and state of health of each of the parties, the future financial prospects of the parties, commitments of the parties to support themselves and the children of the marriage and a standard of living that in all the circumstances is reasonable.
Finally, the Court will assess whether the result is just and equitable.

Before advising you fully as to your particular rights, an investigation as to the size of the asset pool is a necessary first step. We note that an exchange of sworn financial statements is common in such cases.

Property settlements are usually documented by Consent Orders, which are approved by the Court. You may also document a property settlement using a Financial Agreement.

Maintenance is a distinct matter and is different to sums paid in relation to the division of property or the support of children. The matters that would be taken into account by the Court are the needs of the parties as set out in Section 75(2) and the liable party’s ability to pay.

Spousal maintenance may be made periodically (on an interim or ongoing basis), by instalments or in a capitalised sum forming part of the division of the assets between you. Factors such as your ability to work and support yourself, the income you have, the income of your partner and the costs of maintaining yourself at an appropriate standard are all relevant as is the amount you already receive.

If you have any queries about financial matters, please do not hesitate to contact us on 9670 4122.