Property Division in Divorce

One of the most complex and emotionally charged aspects of divorce is the division of property. In New South Wales, property settlement is an essential part of the separation process, as it determines how assets and liabilities are divided between the parties. Understanding how property division works and the factors considered can help you navigate this challenging time more clearly and fairly. Our NSW property settlement lawyers at Szabo & Associates Solicitors can provide valuable legal advice and help you work toward a fair and equitable property settlement.

Understanding Property Settlement

Property settlement is the division of a couple’s assets, liabilities, and financial resources following a divorce or separation. This process applies to married couples and de facto relationships. The goal is to achieve a fair and equitable property division based on various factors, including each party’s contributions and future needs.

What is Considered Property?

In NSW, property includes all assets, liabilities, and financial resources jointly or individually owned by either party. This can include:

• The family home
• Investment properties
• Savings, shares, and other financial investments
  
• Superannuation
• Vehicles
• Business interests
• Debts and liabilities
• Personal belongings, such as furniture, jewelry, and collectibles

When dividing property, the court will look at your overall financial position rather than focusing on specific assets in isolation.

The Property Division Process

When determining how to divide property, the Family Court follows the following process to ensure the division is fair and just:

Identifying and Valuing the Property

The first step involves identifying all your joint and individual assets and liabilities. Each asset must be assigned a current market value. This step is critical to establishing an accurate picture of the financial landscape before making decisions.

Assessing Contributions

The court then considers the contributions made by each of you during the relationship. Contributions can be:

• Financial: Such as income, savings, or investments
• Non-financial: Such as homemaking, raising children, or managing the household
• Initial: Any assets brought into the relationship at the start
• Post-separation: Contributions made after you have separated but before finalising the property settlement

The court considers direct and indirect contributions to ensure the division of assets reflects each of your efforts.

Considering Future Needs

The court also looks at each of your future financial needs and circumstances. This includes factors like:

• Your age and health
• Your earning capacity
• Who will have primary care of the children
• Your ability to financially support yourself

This step helps ensure that the property division accounts for any disparities in your future earning potential and responsibilities.

Achieving a Just and Equitable Division

Finally, the court considers whether the proposed property division is just and equitable. While there is no set formula, the aim is to ensure that you both receive a fair share of the assets based on your contributions and future needs.

Our family lawyers may be able to help you negotiate a property settlement without going to court through informal negotiations, mediation, or collaborative law. If you can reach an agreement, it can be formalised through a binding financial agreement or consent order.

Time Limits for Property Settlement

Under the Family Law Act 1975, a time limit exists for applying for property settlement. If you were married, you must apply for a property settlement within 12 months of finalising your divorce. The time limit for de facto couples is two years from the separation date.

Get Legal Advice from Szabo & Associates

Property division in divorce can be complex, but understanding the legal principles that guide the process can help you navigate it more confidently. Whether you are negotiating a settlement or seeking court intervention, having the right legal advice is crucial to ensuring a fair outcome.

Schedule a consultation with our experienced family lawyers, who can help you through the property settlement process and provide advice tailored to your situation and work to achieve the best possible outcome for you.