THE 4 STEP PROCESS
- DETERMINING THE ASSET POOL
- Identifying the assets, liabilities and financial resources of the relationship no matter when or how they were acquired.
- Valuing the above by agreement or in the event of disagreement by expert valuation.
- ASSESSING THE CONTRIBUTIONS
The Court recognises 4 categories of contributions:-
- Initial contributions, wages, windfalls, inheritances etc.
- Caring for step children, actions adding value to the property (painting, repairs) etc
- Child rearing ( school drop-offs etc)
- Vacuuming, laundry, cooking etc.
- FUTURE NEEDS (SECTION 75(2) FACTORS)
This step involves an assessment of both parties’ current and future needs, with consideration of factors such as:
- The duration of the marriage/relationship
- Age and health
- Income, property and financial resources
- Capacity to gain employment
- Parenting commitments and responsibility to support dependents
- Ensuring each party maintains a reasonable standard of living
- A JUST AND EQUITABLE OUTCOME
A determination is then made as to what would be a just and equitable division of the property, in addition to the practical effect of such a division.
McLachlan Thorpe communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.