How do You Determine Matrimonial Assets for Property Settlement?

A divorce can be an incredibly stressful time for those who are involved. It is normal that both parties want to achieve the best possible outcome for themselves when their marriage breaks down thus, dividing assets for property settlement can be a challenging process.

In a family law property settlement, the net asset pool is the total value of all matrimonial assets (ie, assets that arise out of the marital relationship) minus the value of all matrimonial liabilities. This include matrimonial home, superannuation interests, savings accounts, motor vehicles and shares.

Matrimonial assets in the asset pool can include assets: -

• Owned prior to the marriage or de facto relationship
• Accumulated during the marriage or de facto relationship
• Acquired post separation

What this means is that assets of the marriage that are in either in the name of a party, in the name of both party and assets that are under the control of either party can be included in the asset pool for property settlement. Assets that are taken into consideration are assets that existed at the time of separation unless those assets were used by a party to create a new asset after the separation. In this circumstance, the new asset will then be included in the pool of assets for property settlement.

What is Considered Separate Property?

Assets are considered separate property from the asset pool if it can be proven that only one party of the marriage either completely controls that asset or purchased the asset using their own resources. This is often difficult to prove especially if the marriage lasted for a long period of time.

For example, if one party owns a business before the marriage, it can remain their property during the marriage. However, if one party sacrifices their time and job to stay home to look after the children of the marriage so that the other party can continue to work in the business then the business becomes a relevant property to be included in the matrimonial assets.

Identifying what constitute a matrimonial asset that is available for distribution between both parties undergoing separation is an important yet complex step in a property settlement. If you would like to obtain legal advice about the options available to you to minimise your emotional and financial cost of the process, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an online interview.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.