Divorce Financial Settlement
A client is undergoing divorce proceedings in New South Wales, which have been ongoing since 2023. The spouse is seeking to exclude a workers' compensation lump sum from the marital financial pool and has expressed a firm stance on this issue. The next court hearing related to these proceedings is scheduled for 2024.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkHow can I ensure that my spouse's workers compensation lump sum is included in the asset pool during our divorce proceedings?
To ensure that your spouse's workers compensation lump sum is included in the asset pool, you should gather evidence demonstrating how this compensation affects your overall financial position. Highlight any reliance on this sum for contributions to shared expenses or other communal assets. Emphasise its impact on your future financial needs and how excluding it could lead to an unfair outcome. Engaging a family lawyer could help present a compelling case to the court that considers fairness and equity, pivotal principles in property settlements under the relevant family law legislation.
What are the legal criteria for determining whether a workers compensation lump sum can be considered a marital asset in New South Wales?
In New South Wales, the legal criteria for determining whether a workers' compensation lump sum can be considered a marital asset involves assessing if it forms part of the 'matrimonial property' under family law legislation. The court typically examines whether the compensation was intended to replace income that would have otherwise contributed to the marital pool. The court will also consider the purpose of the compensation, the timing of the payment, and the extent to which it has been intermingled with other marital assets.
What factors might the court consider in deciding whether to include the workers compensation settlement in the financial pool?
In deciding whether to include the workers compensation settlement in the financial pool, the court will consider various factors under family law legislation. These include the nature and purpose of the compensation, its intended use, and its contribution to the overall financial circumstances of the parties. The court will evaluate the financial needs and resources of each party, contributions made by both parties during the marriage, and any implications for future earning capacity.
What are my options if my spouse remains non-negotiable about excluding their workers compensation from the financial pool?
If your spouse is inflexible about excluding their workers compensation from the asset pool, you can pursue a legal determination through the Family Court of Australia. It is advisable to prepare evidence showing how this settlement impacts your financial circumstances. Engaging a solicitor to represent your interests can be crucial in compelling a fair division, as they can argue that the compensation is a financial resource that should be considered.
