The four step process to family law property settlements

The four step process which is followed in determining property division within a property settlement consists of the following steps:

1. Identification and valuation of assets.
2. Contributions of each party (financial and non-financial).
3. Additional Factors
4. The Just and Equitable requirement.

Step 1: Identification and valuation of assets

In this step, it is decided what assets are to be included within the property settlement. Assets can be considered in terms of property and financial resources. In identification of assets, it is important to demonstrate full and frank disclosure. Read More

Step 2: Contributions

When determining the contribution of each party made to the asset pool, both financial and non-financial contributions are considered. Usually, assets are split half-way (50-50), and then any necessary adjustments are made, taking all other factors into account. In recent times, there has been a growing recognition of domestic and family welfare contributions by wives/husbands, and as of 1983, welfare contributions are treated as a separate contribution. Read More

Step 3: Assessment of other factors (s 75(2) factors)

In addition to the consideration of the contributions made by each party, Additional factors can be taken into account. These are outlined in section 75(2) of the Family Law Act 1975 (Cth). 

Some of these factors include:

• The age and state of health of each of the parties
• The income, property and financial resources of each of the parties and the physical and mental capacity of each of them for appropriate gainful employment
• Whether either party has the care or control of a child of the marriage younger than 18 years
• If either party is cohabitating with another person, the financial circumstances of this

The presence of such factors can operate to increase or decrease the amount of property allocated to a party. Read More

Step 4: Just  and Equitable Outcome

The final step in the 4 step process is determination that the outcome reached is just and equitable for all. It is important to know all of your entitlements to ensure that you have received a just and equitable outcome. The family lawyers at Prime are experienced in property settlements and will be able to advise you on these entitlements and will ensure that you receive a just and equitable outcome. Read More

How can Prime Lawyers help you?

At Prime Lawyers we have family lawyers who are experienced in dealing with property settlements. We will talk you through the four step process and provide advice and support every step of the way, whilst working vigorously to ensure that the best result is achieved for you.