Financial resources range from legal costs paid to property disposed of for the benefit of only one of the parties to expected inheritances and gifts or financial resources from parents. Income however, is not included as a financial asset. They are not considered property in terms of a property settlement, however can be included as an ‘additional factor’ to a property settlement. Usually, a party that has little financial assets will be awarded more property assets to compensate and ensure that the result is just and equitable.
Legal costs are generally included in the “Notional Property” category, and thus, the asset pool, if money has been withdrawn from a joint account and used to pay legal costs. However, the funds in this account must have been earned before separation. Funds accumulated post separation, including funds of a spouse’s own endeavours, are generally not ‘added back’ into the asset pool.
Any funds accumulated post-separation are usually not added back into the asset pool, however, in some cases they can be. An example of this is in the case of Townsend and Townsend, where the money earned from a sold taxi licence was to be included in the asset pool, as the licence had value during the marriage and so the other spouse was entitled to a proportion of the proceeds from the sale.
Money spent by a spouse on his or her own pursuits is also notional property and must be added back into the asset pool. Such pursuits include gambling, feeding addictions and extravagant purchases for either the spouse themselves or for other people. The reasonableness of expenditure is talen into account, that is, the assets to be added back must be of a reasonable amount.
How can Prime Lawyers help you?
Property settlements can be very complex. At Prime Lawyers, we have a number of family lawyers who are experienced in division of property and declaration of assets. Our family lawyers will carefully examine your case, and assist you in the division of your financial assets. They will advise you on which assets are required to be declared, and how, whilst ensuring that the best possible outcome is achieved for you.