Who Gets What in a Divorce Settlement? (Division of Assets in Divorce)
Sharing of assets is an important aspect while a couple is separating. It is very complicated calculation and tedious process. You can start working on asset sharing arrangements while being separated or even if you are contemplating separation from your partner.
Below are some of the cases throwing light on how assets are treated and divided among partners/spouses.
- The division of assets in divorce will not be shared in 50:50 ratio.
The reason being the Family Court in Melbourne must consider many factors like contribution, health, age, earning capacity of everyone, child care, medical conditions and treatments et al. to decide on the ration of division of assets.
- Pre-Marital assets/inheritance get divided too.
Depending on the time the couple stays married and the ownership of the asset are a deciding factor in sharing asset that was brought into the marriage.
- Assets are shared with homemakers and stay at home parents
The family court does not discriminate between working or stay at home partner, as both contribute to the domestic life in their own way.
- Business assets are shared too.
Even though only one partner is engaged in business activities, the other has the rightful share of the business profits and assets. The court considers that the other partner has contributed by staying at home and taking care of children.
- Capital gains are divided equally.
If any of the partners win a lottery or gains dividend from the joint holding of a marriage, such capital gain is equally divided among the partners.
- Any partner can continue staying in a family home.
The concern here is children. Whoever agrees to stay with the children for their care can keep the home to himself/herself. This way, it reduces their anxiety and makes them feel secure. The other person can get more share in the bargain of the family home. However, there is no hard and fast rule to decide who will keep the family home. This can be decided between the partners amicably depending on the financial and other social support they have.
- Debts are shared too.
Debts are part of marriage asset pool and it must be shared by partners, irrespective of whether the debt is on individual’s name or joint name.
There are four steps to division of assets in legal separation in Melbourne:
- List all the assets in matrimonial asset pool.
- Assessing the contributions, directly or indirectly made to the asset pool.
- Accommodating future financial needs of each partner.
- And finally ensuring the planned division of assets is just equitable.
After doing all the above, you can move the court for consent orders to legalize the arrangement and take it to the conclusion.