70/30 Divorce Settlement Australia: What You Need to Know

70/30 Divorce Settlement

Dealing with a property settlement during a divorce can be emotionally challenging. The division of assets should be fair, but it’s crucial to understand that each case is unique, and the split ratio may differ depending on the circumstances. In Australia, a significant approach is the 70/30 divorce settlement Australia, where the assets are divided in a specific ratio.

This blog will explain what you need to know about 70/30 divorce settlements in Australia. We’ll cover the legal framework, key factors, and settlement options. By the end, you’ll understand how the 70/30 division works and how to navigate it successfully. Let’s explore the details of divorce settlements in Australia and the importance of the 70/30 division.

What Is the Average Spilt in a Divorce Settlement in Australia?

In Australia, there is no fixed or average split in the financial settlement after divorce, as each case is unique and determined based on individual circumstances. The Family Law Act of Australia requires the court to make decisions regarding property division based on what is fair and equitable for both parties. This means that the division of assets can vary widely depending on factors such as financial contributions, non-financial contributions, future needs, and other relevant considerations.

While there is no set percentage, a common division is a 60/40 split. This typically occurs when one spouse earns a higher income while the other has a greater responsibility for child support or may have limited earning capacity or less superannuation. It’s important to note that every financial settlement after divorce is unique, and the actual division of property and assets is determined by considering various factors specific to each case.

Ultimately, the court considers a range of factors to reach a fair settlement, including the length of the marriage, each party’s financial and non-financial contributions, the future needs of each party, and any child support involved.

What is the 70/30 divorce settlement in Australia?

The 70/30 divorce settlement in Australia refers to a potential division of assets between divorcing spouses, where one party receives 70% of the assets and the other party receives 30%. It is important to note that the 70/30 split is not a strict rule or standard, but rather a reference point that can be considered by the court when determining a fair and equitable division of property.

Many people often wonder if one party can receive 70% of the financial assets while the other party only gets 30% in a divorce settlement. This confusion stems from the misconception that assets are always divided equally. However, in reality, not all couples receive a 50/50 split of their assets and property when they separate. The division of assets is determined by various factors, including financial contributions, non-financial contributions, and future needs, to ensure a just and equitable outcome.

However, it’s important to note that courts rarely approve a 70/30 split because it significantly disadvantages one party. The division of assets must prioritize fairness, justice, and equity. A 70/30 divorce settlement can create an imbalance due to the substantial difference in proportions.

How common is a 70/30 divorce settlement Australia?

A 70/30 divorce settlement, where one party receives 70% of the assets and the other receives 30%, is relatively uncommon in Australia, especially in cases involving long-term relationships and court involvement. However, there are certain situations where a 70/30 split may occur.

For example, if the contributions of both parties were deemed equal but one party requires a higher adjustment for future needs, such as caring for children or having a lower earning capacity, a 70/30 split may be determined. Another scenario is when one partner entered the relationship with significantly more assets, resulting in a 70/30 split based on their contributions and future needs.

It’s worth noting that a 70/30 split is more likely to happen in situations where the ex-partners come to an agreement themselves, especially in cases involving extreme circumstances, emotional stress, or power imbalances. However, it is important to take the time to consider your options, seek legal advice, and make informed decisions during the divorce process to ensure a fair and satisfactory outcome.

How is Divorce Settlement Calculated in Australia?

The Family Law Act (1975) plays a crucial role in determining how assets are divided between two parties going through a separation. Specifically, Section 79 of the Act grants the courts the authority to make decisions regarding the division of assets. However, it’s important to note that parties involved in a separation are encouraged to first try and resolve these matters amicably with the assistance of legal professionals.

Approaching family courts should be considered as a last resort when all other avenues of negotiation and settlement have been exhausted. By exploring alternative dispute resolution methods, such as mediation or collaborative law, parties have the opportunity to reach a mutually satisfactory agreement without the need for court intervention.

However, usually, Court goes through 4 steps to divide property according to the Family Act in a property settlement. They are given below:

Identification and Assessment Of Property Pool
Evaluating the contributions of each partner in the property pool
Considering the Future Needs of the parties
Making the property settlement fair and equitable

Continue reading to get a detailed explanation of each of these stages.

1. Identifying and Valuing Property Pool:

During the property settlement process after divorce, the court’s first step is to identify and value all assets owned by the ex-spouses. At this stage, both parties are required to disclose any joint or individual assets they own. If an ex-wife or ex husband delaying property settlement, the court can compel them to provide all necessary information about their assets, including any liabilities such as debts. It is crucial to understand that the property pool encompasses all assets and liabilities, which may include:

Properties
Investments
Savings
Superannuation
Businesses
bank accounts
Real estate
Any type of vehicles
Any other relevant assets
Even any debts like loans, credit cards

All of these assets or liabilities should be determined at the date of the hearing or the agreement, not the date of separation. This means that any changes in value occurring after separation would typically be included in the property pool. For instance, If you receive a worthy gift like a car or a flat, it shall be included in the property pool.

2. Assessing Financial and Non-Financial Contributions of The Parties’

In the second step, the court will also take into account financial contributions made by each party during the marriage. They will consider both financial and non-financial contributions. Financial contributions may include income, savings, investments, etc. Learn about “hernia mesh lawsuit average payout.” And non-financial contributions shall include caring for children, homemaking, or supporting the other spouse’s career advancement.

The Court considers each party’s contributions throughout the relationship, including before, during, and after. In long-term relationships, they may find the overall contributions to be equal. The Court doesn’t prioritize financial or non-financial contributions and aims to balance them equally.

Additionally, the Court considers the extent to which the parties agreed to the contributions made during the relationship. Even if these contributions were unbalanced, the Court may take into account that they were agreed upon without any control or duress.

The division of assets is frequently misunderstood when referring to “70/30 property settlements” or “50/50 property settlements.” Simply earning more or paying a larger portion of expenses doesn’t guarantee an exact mathematical share in property distribution. It’s not a strict “dollar-for-dollar” calculation, but rather a comprehensive assessment based on multiple factors and considerations.

3. Considering the Future Needs of the parties {Section 75(2)}

After assessing the contributions of the parties, the court has the responsibility to determine the future needs of the ex-spouses. This stage is commonly referred to as assessing the ‘section 75(2)‘ factors. The primary objective at this stage is to evaluate the parties’ ability to support themselves after the settlement. Future needs encompass several aspects, including:

Earning capacities
Age of the parties
Health conditions
Care of children
Permanent disability affecting either party
Employment opportunities for the ex-spouses

Based on these factors, the Court will conduct a fair and equitable hearing. For instance, in cases where one party is physically disabled and lacks earning capacity, the Court will strive to reach a balanced decision that favors the disabled individual.

4. Balanced and Equitable property settlement

Taking into account the factors mentioned above, the court aims to achieve a fair and equitable division of assets. This may involve adjusting the division in favor of one party to meet their future needs or to compensate for significant financial or non-financial contributions made during the marriage.

How Can We Help You

It’s important to note that financial settlement after divorce can be complex, and the calculation process may require legal expertise and professional advice. Consulting with an experienced divorce lawyers north Sydney is advisable to ensure an accurate calculation and effective advocacy for your interests.

At Consort Family Law, we have expert Family Lawyer North Sydney who can assist you in gaining a better understanding of your potential entitlements. By working together, we aim to find a resolution that aligns with your unique situation.

If you have any queries about property settlement or a 70/30 divorce settlement Australia, please don’t hesitate to contact us. We are at your service.