Asset Division Case
The individual has been married for 14 years and is currently in the process of divorce proceedings in the state of Victoria. The marriage has produced no children. The estimated value of marital and personal assets is stated as approximately AUD 1. Superannuation accounts are valued at around AUD 2. It's asserted that one party owned the home and covered all living expenses, with the other party making little to no financial contributions. Neither party is seeking spousal maintenance, and there are no known tax implications related to the divorce settlement.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat factors does the court consider when deciding on a property settlement in a divorce?
In a property settlement during a divorce, the court considers several key factors, including the duration of the relationship, the financial and non-financial contributions of each party, and the future needs of each party. The court also evaluates the health, age, and earning capacity of each party. The aim is to achieve a just and equitable division, considering each party's financial resources and obligations.
How is superannuation treated in a divorce settlement in Australia?
In Australia, superannuation is treated as property during a divorce settlement. The Family Law Act 1975 permits superannuation to be divided between parties. Factors such as contributions made by each party and the total pool of assets are considered. Superannuation splitting involves either a base amount transfer or a percentage split of future benefits.
What steps should I take to ensure a fair division of assets?
To ensure a fair division of assets, consider obtaining a thorough valuation of all marital and personal assets, including superannuation. Engaging a family solicitor can help negotiate a settlement that recognises significant financial contributions. Document all financial and non-financial contributions made by both parties during the marriage. If negotiations fail, legal advice is crucial, as the court will consider the future needs of both parties.
Are there any tax implications I should be aware of in relation to the divorce settlement?
In an Australian divorce settlement, potential tax implications may include capital gains tax (CGT) if transferring property. Superannuation splits are generally tax-free, but future tax implications on withdrawals should be considered.
