What are Financial and Non-Financial Contributions?

Section 79 of the Family Law Act 1975 (Cth) sets out the general principles of a Court in settling financial disputes between both parties of the relationship. In deciding what Order should be made in relation to property settlement proceedings, the Court will take into consideration the contributions made by each party to the relationship, financial and non-financial. Financial Contributions Financial contributions are contributions of a financial nature of a party to the relationship, or on behalf of a party to the relationship, or a child of the relationship to the acquisition, maintenance or improvement of assets at the beginning, throughout and after the relationship. Significant assets, gift, inheritance and superannuation brought into the relationship at the start of the relationship, or the contributions of salary and superannuation or other earnings generated during the relationship are contributions that will be taken into consideration by the Court. Contributions can be made directly or indirectly: -

Direct Contribution	Indirect contribution
Easily and readily calculable	Difficult to ascertain the weight that should be placed in the contributor’s favour
For example: Making a lump sum payment against the mortgage of the matrimonial property.	For example: Contributing your weekly income to the daily household expenses.

Non-Financial Contributions Non-financial contributions are those that are made to increase the amount of the net asset pool. These can include home improvement, conservation or renovations (such as repainting the home and landscaping) done by a party to increase the value of the matrimonial or investment home. These contributions also include a conduct or an action taken by one partner whereby that conduct or action allows the other partner to directly financially contribute to the acquisition of assets. For example, if you, as the wife gave up your working career to raise your children of the marriage, and thus enabling your husband to work throughout the week to contribute to the financial build-up of assets, the Court will take this into account as you have indirectly contributed to the property pool. It is important to note that not all contributions to a relationship have a ‘price-tag’. If you would like find out more about your rights and options on financial and non-financial contributions or have a Binding Financial Agreement drafted, 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.