The Assets Question
People quite often ask us if they need to have contributed money to receive a share as part of a property settlement. The answer is no – when it comes to property settlements under the Australian Family Law Act 1975, financial contributions are just one part of the equation.
The law considers various types of contributions, including:
Financial Contributions: This includes wages, money paid towards outgoings, and other monetary inputs. These are often the most straightforward to quantify.
Non-Financial Contributions: Roles such as homemaker or parent, and domestic duties like gardening and home maintenance, are also highly valued. These contributions, though not monetary, are essential in maintaining and improving the household.
Contributions to Property Value: Any efforts that improve the property’s value, such as renovations or maintenance work, are taken into account. These can significantly impact the overall value of the property.
Additionally, the future needs of both parties are balanced. This includes considering factors like:
Caring Duties: Who will be responsible for the care of any children or dependents? This can influence the division of assets.
Health Needs: Any ongoing health issues or needs of either party are also considered. This ensures that both parties can maintain a reasonable standard of living post-settlement.
In summary, you don’t need to have contributed money to get something out of a property settlement. Both financial and non-financial contributions are recognised and valued under the law. The goal is to achieve a fair and equitable distribution that considers the contributions and future needs of both parties.
If you are in the process of separating, it’s important that you seek legal advice so you can understand your rights and obligations in terms of the division of your assets. If you and your former partner can negotiate an agreement without going to court, it can save you time and money.
