How are assets divided in a divorce in Australia
Assets and divorce
In Australia, the division of assets in a divorce follows the principles of "just and equitable" distribution under the Family Law Act 1975. There is no set formula, but the process generally involves four key steps:
1. Identifying and Valuing Assets & Liabilities
All assets and debts, whether held jointly or individually, are considered. This includes:
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Property (houses, land, investment properties)
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Bank accounts and cash
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Superannuation (pensions/retirement funds)
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Investments (shares, crypto, businesses)
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Vehicles
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Debts (mortgages, loans, credit cards)
Both parties must fully disclose their financial situation.
2. Assessing Contributions
The court considers:
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Financial contributions (e.g., income, inheritance, property owned before marriage)
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Non-financial contributions (e.g., homemaking, parenting, supporting a partner’s career)
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Initial contributions (assets owned before the marriage)
3. Considering Future Needs
Adjustments may be made based on:
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Age and health
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Earning capacity
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Who has primary care of children
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Future financial prospects
4. Ensuring a Just and Equitable Outcome
The court ensures that the final division is fair, considering the circumstances of both parties.
Other Key Points:
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Superannuation is treated as property and can be split.
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Binding Financial Agreements (BFAs) (prenups) can impact the division.
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If an agreement can't be reached, mediation or court intervention may be necessary.
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There is a 12-month limit to file property settlement claims after divorce.