After working out the asset pool, the next step in a family law property division is an assessment of the contributions made to the asset pool.
Please see our blog about the asset pool here:
What assets and debts are included in a family law financial settlement?
The Family Law Act divides contributions into 3 types:
- direct and indirect financial contributions;
- direct and indirect non-financial contributions; and
- contributions to the welfare of the family including contributions as homemaker or parent.
Contributions can be made by a party or on behalf of the party. For example, contributions to the welfare of the family might include the contributions of a grandparent caring for a child of the family which allows both parties to participate in full time employment.
Contributions can include things like:
- Property brought into a relationship
- Contributions made during a defacto relationship when the parties are later married
- Rent-free accommodation provided to the parties
- Contributions made after separation
- Wages or other earnings
- Gifts or inheritances
- One party taking a greater role in the care of children to allow the other to improve career prospects
- Improvements, maintenance and renovation of property
Also relevant when assessing contributions are things like:
- Length of the relationship
- The timing of the contribution
- The value of the contribution as part of the total asset pool
- Whether any pre-relationship contribution acted as a ‘springboard’ to increase the value of the asset pool
If you are unsure about any aspect of the four-step process and issues relevant to your family law matter, please get in touch to see how we might help you.
MORGAN COUZENS LEGAL
