When dividing up assets in a Family Law property settlement, the starting point for many people is to calculate how much you paid. If you contributed $100,000 to the relationship, you should be able to get that back, right?
This is easy to assess when there are only financial contributions in a relationship but naturally, finances are not the only things contributed to a relationship. According to the courts, property settlements just produce a just and equitable outcome. As such, the contributions of the parties must be considered in a holistic manner and are not limited to things with a monetary value. Both financial and non-financial contributions are considered of equal importance.
Working vs Stay at Home
When you consider the contributions of the parties, they fall into two basic categories: financial and non-financial. Other ways to consider this include working or stay-at-home and breadwinner or homemaker.
Financial contributions are easy to consider as they can be put into numbers. Non-financial contributions are harder to assess but are given equal weight. These include looking after children, being the primary caregiver, improving the marital home and being a homemaker.
The idea behind giving equal weight to non-financial contributions is the recognition that being a stay-at-home mum or dad is a full time job. If you were not at home and making non-financial contributions to the relationship, then you would likely be in the workforce and able to make financial contributions. Therefore the person who has made the choice with their partner to stay at home and contribute to home life should not be penalised over someone who has chosen to work. Both contributions are equally important.
At the end of the day, the property settlement needs to reflect a just and equitable split between the parties. One of the ways this is achieved is by recognising that both financial and non-financial contributions are significant in a relationship.
If you have any questions about financial or non-financial contributions, or would like more information on family law property settlements please do not hesitate to contact us on 9688 6023 or email jfrank@franklegal.com.au
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