A guide for separating parties
If you are going through a divorce or separation, dividing your property and assets can be a complex and emotionally challenging process. The Family Law Act 1975 sets out the legal framework for property settlements in Australia. In this article, we will explain the 5-step process for property settlements under the Family Law Act 1975 and how it applies to your case. We will also discuss the landmark case of Stanford and Stanford and its impact on property settlements.
The first step is to identify all assets and liabilities, both individually and jointly owned. This includes real estate, investments, bank accounts, superannuation, and personal belongings. Valuations may be necessary for certain assets, such as property or businesses.
The second step is to assess each party's contributions to the relationship. This includes financial and non-financial contributions such as income, inheritances, gifts, and domestic duties.
The third step is to consider the future needs of each party. This includes factors such as age, health, income, and caring responsibilities.
The fourth step is to evaluate a just and equitable outcome based on the previous steps. This means considering each party's contributions and future needs to determine a fair division of assets and liabilities.
The case of Stanford and Stanford was a landmark decision by the High Court of Australia in 2012. The court held that the 5-step process for property settlements under the Family Law Act 1975 is not a mechanical formula and should be applied flexibly in each case. This means that the court has discretion to depart from the process if it is necessary to achieve a just and equitable outcome. The impact of Stanford and Stanford on property settlements is significant. It means that the court has more flexibility to consider the specific circumstances of each case, rather than applying a strict formula. This can lead to more tailored and fairer outcomes for parties in property settlement proceedings.
Property settlements under the Family Law Act 1975 can be complex and emotionally challenging. Understanding the 5-step process and how it applies to your case is crucial for achieving a fair division of assets and liabilities. The landmark case of Stanford and Stanford has further emphasised the need for flexibility in property settlements to achieve a just and equitable outcome. If you require assistance with a property settlement matter, it is important to seek the advice of an experienced family law practitioner.