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Family Law calendar    Apr 19, 2017

Family Law: Division of the assets (noun)

Division of the assets (noun): a percentage figure based on the contributions and future needs of parties to a relationship which determines how much of the asset pool they will receive.

Division of the assets (noun): a percentage figure based on the contributions and future needs of parties to a relationship which determines how much of the asset pool they will receive.

When parties are undergoing a property settlement, the law seeks a percentage figure which determines how the assets will be divided. This percentage is determined through a specific process which takes into account the contributions and future needs of both parties.

 So how does it work?

 First, imagine a rectangle. This rectangle is the net asset pool of the relationship (see our blog post here to read more about the net asset pool).

 Assuming that it is just and equitable to adjust the property pool, the first step in determining the division of assets it to figure out the financial, non-financial and homemaker contributions made by each party to the relationship. Let’s say, on the balance of things, you made 90% of the homemaker contributions and your partner made 90% of the financial contributions. Since homemaker and financial contributions are considered equally, the line would be drawn down the middle of the rectangle.

 Next, we move to future needs as defined by the Family Law Act. Let’s say one partner will have predominant care of the children. This is counted as a future need because it will increase the cost of living for that party into the future. As such, the carer party may receive an adjustment in the realm of 5%, meaning that the line down the middle of the rectangle (the net property pool) would move in their favour so they receive a greater proportion of the assets.

 By using this process, we may reach the conclusion that one party should receive 55% whilst the other party should receive 45% of the asset pool. This in very simplified fashion is how a division of assets occurs. Once a percentage is known then it is about working out what needs to happen to those assets to get to the desired percentage.

 If you have a family law matter, concerns about how to get a family law property settlement or questions about family law and separation in NSW and want to find out more please do not hesitate to contact us on 9688 6023 or email us at info@franklegal.com.au.

 Contact The Family Law Team For A  Free First Conference

 

 This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.

 

More from the blog

Family Law: An introduction to our jargon guide

A brief Summary on Family Law property Settlement

family law property settlement, family law and parenting, divorce, family law property settlement in NSW, legal jargon, understanding family law

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