It is a widely held view that following a separation, assets and liabilities are split equally between the separated couple. This is not correct. There is no rule that assets must be divided equally.
The division of assets are divided between separated parties based on many factors. Some of these factors are:
- The length of the relationship or marriage.
- The financial contributions made at the start of the relationship.
- The financial contributions made during and after the relationship.
- The contributions made by either party as a parent and/or homemaker.
- Any non-financial contributions made.
- Any factors that impact on either party’s ability to work in the future including the care of children.
- Whether one party has the capacity to earn significantly more money than the other.
A lawyer who is experienced in family law will be able to give you a range of what they consider the likely division of assets to be, based on the individual circumstances in your case.
After considering all the individual factors, the reality is that a 50/50 division of the assets and liabilities is quite rare.
Any agreement on the division of the property pool must be either approved by the Court as being just and equitable or must be in the form of a binding financial agreement. For a binding financial agreement, the parties both must have independent legal advice before signing the agreement.
We are focused on achieving the best result and commercial outcomes for our clients. At your initial consultation, we will talk to you about what we consider your likely range to be and what is the best way to formalise your agreement.
