Once the property pool has been determined in a property settlement, the contributions of the parties is considered.
This is an examination of both the financial and non-financial contributions that the parties have made.
The courts will consider:
– initial contributions;
– contributions during the relationship; and
– contributions post separation.
All of these factors will be assessed, and a percentage adjustment made in favour of one party if appropriate (eg. 60%/40% split).
Initial contributions are generally the assets and liabilities that you bring to the commencement of the relationship.
Contributions made during the relationship consider both financial and non-financial factors. The financial contributions include income, inheritance or gifts, and payment of expenses. Non-financial contributions can be renovations to property, duties as housemaker and carer, and unpaid work in a family business. It also includes contributions to the welfare of the family in particular as homemaker and parent. In most cases the contributions by way of income are considered equal to the non-financial contributions of the other party.
Post separation contributions considers what has happened to the assets, liabilities and superannuation of the parties after separation, as well as the non-financial contributions. The court will make any adjustments to the property pool as it stands at the time of the trial. Therefore, it must consider any alteration of the property pool post separation.
When negotiating any property settlement family law it is important to extensively investigate the contributions of the parties. Failure to do so can have a significant impact on the percentage of the property pool that each party receives.
I recommend obtaining legal advice before, or as soon as you separate, to ensure you are aware of your entitlements. This applies to both parties seeking representation and those wishing to self-represent.
