It Begins With a Tennis Match

By Alan Weiss – Aussie Divorce

Example of property distribution process

My Lawyer

My Lawyer

Example of Property Settlement

Michael 45 years oldAnnual income $80k

Lisa 42 years old

Annual income $25,000

15 years relationshi

p

Two teenage children

This infographic is likely scenario how the property settlement process might work. Every case is unique. It is important that you

obtain legal advice from a lawyer. See Aussie Divorce

Value $550000

Assets

CREATION OF A NET ASSETS POOLWorking out what you've got and what you owe, that is your assets and debts and what they are worth1

Net Property $ 433,000 Super Husband $ 120,000 Total Pool $ 553,000

Liabilities

Family home $ 550,000 Cars $ 25,000 Furniture / jewellery $ 28,000 Shares (Michael) $ 45,000 Sub Total of Assets $ 648,000

Family home (Joint) $550,000

Family home mortgage $ 200,000

Car loan (Michael) $ 7,000

Credit cards (joint) $ 8,000

Sub Total of Assets $ 215,000

Contributions

ASSESING EACH PARTY'S CONTRIBUTION TO THE RELATIONSHIP2

MichaelFinancial contribution • Earnings • Superannuation• Parents gift $150k to

pay a deposit on the house

Non-financial contribution

• Care of his children 20%

• Household duties 20%

LisaFinancial contribution • Income (part time)

Non-financial contribution

• Care of the children 80%

• Domestic duties 80%

Future RequirementsA court will take into account things like age, health,

financial resources, care of children and ability to earn.

Michael might be entitled to between 10 -15 % for the money contributed by his parents, giving him between 60%

and 65% of the net assets after step 2

3

$

We assume that Michael will be retaining the whole super $120,000.

He will be liable to pay child support

No ongoing spousal maintenance

Lisa earns less and will have more responsibilities for the care of children.

She will be receiving child support.

Lisa may be entitled to an adjusted between 15 – 20% in her favour after completing step 3 of the process.

The calculationLisa + 15 – 20 % in Step 3

Less Michael’s + 10 – 15% in Step 2

Equals and fair

Additional distribution of between 0 – 10 % of the net assets in favour of Lisa.

In this scenario, Lisa will be entitled to between 60% - 70% of the net value of the assets. ($319,800 to $373000)

Court’s Discretion Under the law, a Court has considerable discretion when determining the respective property entitlements of parties to a marriage or relationship. This means it is impossible for anyone to predict with absolute accuracy what the outcome of such proceedings will be. In any matter, there will be a range of possible outcomes that will be considered to be “just and equitable” and one particular judge’s view may differ slightly from that of another.