May 05, 2016
An important part of any property settlement is adjusting the division of the asset pool to reflect the contributions made to the relationship and the future needs of each party so as to achieve a just and equitable outcome. If you have retained our services in your family law property settlement matter, it is likely that you will have been provided with a ‘Contributions Worksheet’. Keep reading for a quick how-to on completing a contributions worksheet or an overview on how we look at property settlement.
Financial Contributions
Part 1 of the worksheet addresses Financial Contributions. When deciding whether financial contributions were equal or not, think about the money and assets each party brought to the relationship, the role of each party during the relationship (as either homemaker or breadwinner), the respective employment history and earning capacity of each party and the way in which financial expenses throughout the relationship were met.
Non-Financial Contributions to the Asset Pool
Part 2 of the worksheet deals with Non-Financial contributions to the asset pool specifically. These contributions are just as important as Financial Contributions so do not take them lightly. Some things which constitute non-financial contributions include undertaking home improvement tasks and contributions to an income source in a voluntary capacity (eg. Managing your partner’s business but not earning a wage).
Contributions to the welfare of the family
This section is concerned with whom filled the role of homemaker and primary caregiver for the children. Some activities which may be included in this section are cleaning, cooking, completing the school run, helping kids with homework, driving kids to their extra-curricular activities and managing the family finances.
Effect on Earning Capacity
This section addresses whether the orders sought will impact your earning capacity. For example, being the sole carer of children of the relationship would limit a person’s earning capacity because they are required to stay at home or have limited working hours and/or now it would be difficult for them to find gainful employment due to their time out of the workforce.
Contributions: s 75(2) factors
These factors deal with future needs. Most are quite straightforward. We have listed some common categories below:
- Age and Health: Whether one party is substantially older, is retired, has clinical ongoing health problems, may have future medical problems due to their line or work.
- Income, property and financial resources: Any investments held by either party, overseas holdings, property assets, whether one party has a significantly higher income than the other
- Physical and mental capacity for appropriate gainful employment: Whether each party will be able to gain and sustain employment
- Responsibility to look after other people: This may include elderly relatives, familial members, people with a disability etc.
If you have any questions or concerns regarding disclosure or your family law property settlement, please contact James Frank for further advice at jfrank@franklegal.com.au or 02 9688 6023 or click the button below.
This article is provided to the reader for general information. It is not legal advice. It was written by Emily Graham & Andrea Spencer and edited by James Frank.
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