Key takeaways
There is no set formula for dividing assets – Courts decide based on fairness, not fixed percentages
A 60/40 division is common but not a rule – Every case is different
The asset pool includes everything owned by both spouses – Including superannuation and debts
Children can influence asset division – Often favouring the primary caregiver
As you delve into your research, you understand that the language of divorce is indeed complex. Terms like serving, alimony, mediation, and asset division can be overwhelming. But fear not; we’re here to guide you through this maze of legal jargon.
When we say “split,” we’re referring to asset division, a process in which the courts decide who gets what in the property settlement. Many factors affect asset division, and the court considers various things when trying to achieve a just and equitable outcome.
How typical is a 70/30 split?
Though it’s not the most common asset division, some cases result in a 70/30 split. Australian courts do not follow a rigid formula for the split. Instead, they assess property division based on contributions and future needs, ensuring the outcome is ‘just and equitable’.
A 70/30 split is more common in divorces where a couple’s future needs and contributions are significantly unbalanced. After all, if one party contributes more to the relationship while married, or one spouse brought in significant property at the start, you can see why it might be fairer for that person to get more in the property settlement.
Equally, a partner sometimes goes ahead and agrees to a 70/30 split hastily in a situation where high emotion or other extreme circumstances are involved, like domestic violence or a partner simply wanting a fast out.
These high-stress situations are part of the reason why you both wait 12 months of separation before getting a divorce. You get to take this moment to breathe and think about what you really want to do. There’s no need to rush into making a decision you’ll regret and leave the relationship with much less money. Reach out to us; we can help get you more time to think – with our financial assistance program that can help cover your legal expenses during the divorce process.
Take a look at our resource guide for women suffering from domestic violence here.
Is 50/50 a fair split in a divorce in Australia?
Though you might think 50/50 is a fair split in a divorce, the court weighs up many factors when considering how to divide assets and property. The courts will think about contributions to the marriage, like income, property, homemaking, and childcare. They’ll also think about each person’s future needs based on their health and income and the length of your relationship.
In longer marriages, courts may award a 50/50 division, but this is not automatic. The decision is based on factors such as financial and non-financial contributions, homemaking, and each party’s future needs.
What is the average split in a divorce settlement in Australia?
So, what is the average split in Australia-wide divorce settlements? There is no definitive data, and Australian family law does not prescribe a fixed percentage. Courts assess financial and non-financial contributions, future needs, and caregiving responsibilities to ensure an equitable outcome.
With that said, there is some consensus among lawyers that a 60/40 split is the common asset division in Australia. Usually slightly in favour of the wife in a relationship, this asset split is based on factors like one spouse making much higher financial contributions during the marriage or having a significantly reduced earning capacity post-divorce. A 60/40 split also pays attention to whichever person is your family’s primary caregiver for any children or other dependents.
As you spend time negotiating your split, you might notice the costs adding up. You don’t have to compromise on your divorce settlement just because you don’t want the process dragging on. A simple discussion with your lawyer may be all you need to get to grips with your costs and set up a payment plan that suits you. Find out more about discussing your legal fees with your lawyer here. Alternately, there are different ways to fund the payment of legal fees, including legal finance, where you can apply for a line of credit to cover the cost of legal expenses and repay once you reach a final settlement – JustFund is one such specialist legal finance provider that may be able to assist you.
What goes into determining the total asset pool?
As the court determines the asset split in your divorce, they’ll first identify the total asset and property pool. This pool includes all your and your spouse’s assets, financial resources, and liabilities. This means it includes everything from properties and business assets to financial accounts, superannuation, and valuable personal items.
Your combined total asset pool may contain properties, business assets, financial accounts, superannuation, and valuable personal items. The courts consider the total asset pool, which includes real estate, superannuation, business interests, and financial resources. This applies even if an asset was acquired before marriage unless excluded by a binding financial agreement.
Remember, the key principle here is equity, not necessarily equality. While a 60/40 or 70/30 split may seem unequal initially, it’s important to understand that this approach considers each partner’s earnings and individual financial needs. This should give you confidence in the fairness of the process.
What is my spouse entitled to in a divorce in Australia?
By this point in our guide, you know that courts do not grant automatic entitlement based on gender. However, spousal maintenance may be awarded if one party cannot support itself due to income disparity or health or caregiving responsibilities. The courts will look at your unique combination of assets, the amounts you earn, and the overall picture.
Yes, a wife may be entitled to slightly more. But this is based on a wife who is the primary caregiver after your divorce, as well as typically having a lower earning capacity, which many women do. If the husband has a higher earning capacity, he is more likely to be still able to support himself after the divorce, even with less in the settlement.
How do children affect a divorce asset split?
Children are an important consideration in a divorce settlement. Your children’s life and future needs, such as their school expenses, healthcare, and other day-to-day costs, all factor into how much child support the non-primary caregiver needs to pay. In some cases, such as the children still being very young or having several children, courts prioritise children’s welfare when dividing assets, but child custody alone does not dictate asset division. Financial needs, housing stability, and caregiving duties all influence the decision. The well-being of your children is paramount in asset division. Find out more about family law resources in legal services in our blog post.
So, though there are many different types of asset splits, you can see some of the reasons behind them. Everyone’s divorce is a unique situation. Now that you know what a split means, you can more effectively discuss divorce settlement with your lawyer. For more information on the funding we offer, contact us using our form, email us at [email protected], or call us at 1 300 644 980.
