What Is The Average Split In A Divorce Settlement In Australia?

Separation of a couple is an event full of stress and trauma. A couple not only shares an emotional bond while living under one roof but also shares almost all the necessities of life. When a couple separates, children and property are the two most urgent things that require legal attention. Division of property lawfully and justly is important to avoid any disputes in future.

Property division after divorce is a complex task. Many factors are considered before splitting a couple’s assets. Typically, when a couple splits, one of the partners receives 50-65% of the property. However, this split is not mandatory; it varies from case to case. This blog will shed light on the most common types of property splits in Australia.

I will explain the splitting of property after divorce, what the average split is in a divorce settlement in Australia, and what steps are involved in the splitting of assets. Let’s read the blog to learn about the details and legal actions related to it.

What is the Average Split In A Divorce Settlement in Australia? 

The split in a divorce settlement varies from case to case. Generally, the average split in a divorce settlement Australia, is 40-60% of the property. Another common type of split is 70-30%, but it only happens in scenarios when one party comes into the relationship with more assets.

What is the 70/30 Divorce Settlement Australia? 

Splits are not very common, and most cases happen with the couple’s mutual consent. Unequal distributions usually happen when intense emotional disturbances in a relationship or other unusual circumstances occur. Intense situations include domestic abuse; in such cases, one side wants to leave the relationship quickly.

A 70/30 divorce settlement in Australia refers to a situation where one party receives 70% of the assets while others only get 30%. When a divorce settlement happens in court between a couple with an extensive relationship, it is highly unlikely that the decision is in the favour of the ex-husband. A 70/30 divorce settlement mostly happens when one partner brings a huge amount of assets at the start of a relationship.

You should not make any decisions in the heat of the moment while applying for a divorce settlement that you might regret later. You must take a moment to relax and think about your alternatives, even if you are in a rush. Amid intense emotion, you don’t want to make a choice that causes trouble for you later on, and you find yourself shouldering more responsibility for a significantly smaller settlement sum. 

You must consult legal counsel before filing for a divorce and do not handle this matter with urgency, as it might get you in trouble later. Divorce lawyers at Aussie Legal Partners will assist you in determining the best course of action for your property settlement, help you through your emotional journey, and determine if you qualify for spousal support.  

 

 

How Assets are Split in Divorce Settlement Cases in Australia?

The split of assets in divorce settlement cases is a complex process involving multiple factors. The four major steps involved in the process of splitting the assets are as follows:

1. Assessing the Value of Assets

The first and foremost thing to happen after filing for a divorce settlement is listing and evaluating the assets, irrespective of when they were acquired, either before, during, or after the couple’s divorce. Anything worthy might be considered an asset. This includes: 

1. Inheritances
2. Payoffs
3. Redundancy packages
4. Lottery winnings
5. Jewellery
6. Real estate
7. Vehicles
8. Savings
9. Stocks
10. Other real or personal property.

The couple’s superannuation benefits will also be treated as assets unless one of the partners possesses superannuation benefits abroad, in which case they are recognised as a financial resource. However, superannuation is frequently considered apart from other assets.

Any financial obligation (liability) also plays an important role in determining the split during the division of assets. Some of the liabilities are:

1. Car loans
2. Credit cards
3. Mortgages
4. Personal loans
5. Bank loans
6. Property loans
7. Debts
8. Tax obligations

2. Evaluating Each Party’s Contribution

The second step in splitting assets during a divorce settlement is evaluating each partner’s contribution to collecting the financial and non-financial assets before, during, and following the relationship. Then, these assets are adjusted on a percentage basis. If a couple was in a live-in relationship before their brief marriage without children, it might prove crucial during settlement.

Financial contributions include gifts, income, redundancy packages, inheritances, real estate, cars, compensation, dividend payments, and more. They can also be made indirectly toward the preservation, purchase, or improvement of any of the partners’ or either of their properties.

Non-financial contributions can take many forms, such as homemaking, parenting, landscaping, renovations, painting, and other labour intensive improvements to the house. These contributions will also contribute to the acquisition, conservation, or improvement of any of the couple’s or any of their property or the family’s welfare. It’s crucial to understand that the contributions, as mentioned earlier, may also be made to assets neither of the partners own nor the assets both currently own.

During divorce settlements, adjustments can be made in favour of one partner if the other has wasted or destroyed the assets rather than contributing to collecting them. For example, if one partner has spent a huge amount on gambling, they will face the consequences during the settlement.

3. Estimating Future Needs

In the third stage of the divorce settlement process, the couple’s “future needs” are calculated. Several factors are considered, such as health, income, age, earning potential, individual financial resources, financial conditions of any new partnership, child care and support, and other concerns.

If any modifications are needed in the entire divorce settlement, they can only be made if one partner has to support or care for a young child, as this will impact the earning potential. The court examines all the aspects before giving the final verdict, and modifications can only be made once the court gives its permission.

4. Understanding The Practical Impacts

The last and final stage of settlement cases is understanding the practical impact of the above mentioned first three phases on both parties. In the last step, the case goes to trial, where it is once again observed to make sure that the decision is reasonable and fair for both parties.

In most property cases, the economically weaker spouse, typically the wife, gets a 55–65% share of the property other than paying the attorney’s fees. Generally, the result of property settlement cases is determined by the actual circumstances, as the court’s decision is discretionary.

Ways To Negotiate Divorce Settlements In Australia

Divorce settlements are not always decided in one go. Sometimes, solving a divorce settlement case takes multiple attempts and negotiations.

Here are a few ways to negotiate a divorce settlement in Australia.

1. Litigation

If partners cannot agree via negotiation or other methods, they may choose to proceed with a lawsuit. In this situation, a court will finalise the asset distribution of the divorce settlement in Australia. However, litigation may be a time-consuming and costly procedure, with the end being less gratifying for both parties because the court makes the final judgement.

2. Consent Orders

Consent orders are other options for couples to legalise their formal agreement. Couples can turn their formal agreement of divorce settlement into a legal document that has to be implemented by both parties after seeking court approval. This option offers surety to the couple as the court’s approval makes the agreement legally binding.

3. Informal Agreement

Informal agreements refer to decisions that a couple makes with mutual consent without involving any legal body in their divorce settlement issue. Although this is a more casual approach, it is harmless for the couple to proceed with it. Regardless of whether the agreement is mutual, it is still important to keep it documented, as it will be helpful if any dispute arises in the future.

4. Binding Financial Agreement (BFA)

A BFA, also known as a Binding Financial Agreement, is a legal agreement enforceable by law. It is a written agreement that lists how assets will be divided in the event of a divorce. A BFA is a legal pathway to deal with the divorce settlement issue. It also gives couples certainty and control over the asset division process.

Closing Insights

I have summed up all the possible aspects of divorce settlements in Australia in this blog. Reading it will surely introduce you to various new facts about the average split in a divorce settlement in Australia, how assets are split, what a 70-30 divorce settlement is, the steps to negotiate a divorce settlement, and what type of agreements can be used to document a divorce settlement.

The divorce settlement process is complicated, and there are also chances of disputes. Therefore, it is important to contact a divorce or family lawyer to guide you through the process. Aussie Legal Partners has a team of divorce and family lawyers to help you settle your case with maximum benefits. Our lawyers come from different backgrounds and can resolve your case even though you are a non-English speaker in Australia.

 

 

FAQs

How are divorce settlements calculated in Australia?

In Australia, divorce settlements are calculated by considering several factors, such as the financial and non-financial contributions of both couples, their future needs, and other relevant factors.

What is a 60/40 split divorce in Australia?

After divorce, the assets collected prior to, during, or after marriage are calculated and divided among couples, considering several factors. A 60-40 split means that one partner gets 60 percent of the assets while the other gets 40 percent.

Who Pays for Divorce in Australia?

Usually, in divorce cases, couples also separate their finances. Each partner pays for the divorce separately because, in most cases, they hire a different legal advisor to solve their case.