Property owned by spouses prior to marriage is dealt with under s 75(2) of the Family Law Act 1975 (Cth) as a contribution to the marriage.
The erosion effect is used to consider the way that such assets are divided in the property settlement. Regard is given by the court to the use made of the contribution by each party. Contributions of the other spouse to that asset are also taken into account. An example of this is when a house of the husband is brought to the marriage, but the wife pays for all bills and maintains the house. The interest of the spouse owning the property may be eroded by the other party’s contribution to it and so the asset is added to the asset pool.
How can Prime Lawyers help you?
At Prime Lawyers, our family lawyers are experienced in assessing the financial contributions of spouses. If you have made contributions to any of your spouse’s property brought to the marriage, we will ensure that you receive the benefits arising from this that you deserve.