It is important to consider entering into pre-nuptial or co-habitation agreements, that can provide legal protection for your assets during and potentially after divorce or separation. These agreements usually occur before marriage and they can provide specific boundaries and expectations should the marriage end.
Keep records of all financial transactions during the relationship. Keep assets held by you prior to the relationship in your sole name. Avoid selling such assets and rolling them over into jointly owned property. If you do, keep clear records of your contributions to jointly owned property.
Family trusts are common legal structures used in Australia with a multitude of benefits. Under the Family Law Act 1975 (Cth), Family Trusts could be considered property and are thus liable to be divided between parties to a divorce.
In Case Of Divorce, Who Gets What, Australia? If the parties cannot decide how the assets are to be decided, it's left up to the family court to decide. As per the law, there's no strict formula for a divorce settlement in Australia. Contrary to popular perception, there's no 50-50 split rule.
Even though an asset purchased before a marriage is considered separate property as opposed to marital property, it will still be factored into the asset pool and considered a contribution of the person who brought the asset into the marriage.
Premarital assets are the contributions of a party that will be taken into account by the court in the four step process that is followed in property settlement applications. An asset that is brought into the marriage or de facto relationship is a direct financial contribution of a party.
Ultimately, the court employs a high degree of discretion when considering what effect one party cohabitating with a new partner has on the property settlement. It all depends on the circumstances of the particular case.
Most property proceedings result in a division of 55 to 65% in favour of the economically weaker spouse, historically the wife, before payment of legal fees. Nevertheless, the outcome of your property settlement will depend upon your practical circumstances, judicial determination in this field being discretionary.
The sole applicant will need to pay a fee to legal professionals, and additional fees to serve the application to their partner. In this case, the partner who is being served with an application for divorce will not need to pay any fees.
The most typical division, however, is a 60/40 split. This typically happens when one person makes more money while the other has a greater share of the obligation for caring for the children after the divorce, or may have a limited ability to earn money or less superannuation.
The most effective tool however, in protecting and defending inheritance from a future family law proceeding, is to have your child enter into a financial agreement (“FA“) with their spouse or partner, often referred to as a 'prenup'. What is a Financial Agreement?
It is a common misconception that a family trust can protect assets from divorce and property settlement proceedings. Under the Family Law Act 1975, property is any asset that a person has an entitlement to, whether in possession or reversion.
In Australia, family trusts are established by trustees: in this instance, parents. The trustees can fill their family trust with profit from their family business, and the trust will then distribute that income to its beneficiaries: the children, grandchildren and their spouses.
Rather, matrimonial property includes all assets, liabilities, superannuation and financial resources that the parties have an interest in under joint names, their respective sole names and, in certain cases, via corporate entities and trusts, whether those interests exist in Australia and/or overseas.
While the Family Law Act 1975 contains provisions that make it harder for claims to be brought against an ex-spouse after twelve months from the date of a divorce (or two years after a de facto relationship separation), an ex-spouse's claim may still be possible, in either scenario.
Financial agreement or prenup
If you have assets you want to protect, such as property or super, you can ask your partner to sign a binding financial agreement. This is also known as a prenup. A financial agreement sets out how your assets and money are divided if your relationship breaks down.
Under the Family Law Act 1975, a person has a responsibility to financially assist their spouse, or former de facto partner, if that person cannot meet their own reasonable expenses from their personal income or assets.
The average cost of a divorce in Australia is variable and can be anywhere between $330 and $1,405, plus the cost of legal representation. It depends on whether the separating parties file for divorce with or without legal representation, and the complexity of the divorce itself.
What is grey divorce? This is a term coined for persons divorcing in their later years. However, some couples may not have married, but when separating in their later years, may fall under the de facto provisions of the Family Law Act 1975 (Cth).
A study led by the American Sociological Association determined that nearly 70% of divorces are initiated by women. And the percentage of college-educated American women who initiated divorce is even higher.
To apply for a divorce, you or your spouse must have been separated for at least 12 months and either: be an Australian citizen. live in Australia and think of Australia as your permanent home, or. usually live in Australia and have done so for at least 12 months before the divorce application.
Make sure that your relationship is over before you date
Just because you have started divorce proceedings does not mean that you have cut emotional ties with your ex. If you harbour any hope of a reconciliation you are not ready to start dating. You should not date because your ex has moved on and is dating.
Can a de facto take half of the assets? Just like with married couples, there is no starting proposition in the Family Law Act that the property of a de facto couple will be divided equally. A de facto partner can, however, receive an adjustment of 50% of the asset pool, if that is the appropriate outcome.
Does Child Support Change if my ex-spouse remarries? No. Only the income of the parents of your children is taken into account in the assessment of your child support payments. Furthermore, a new spouse of a child support payer is not responsible for making child support payments.