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A divorce settlement calculator can help you determine how much you will get after a divorce. In legal terms, we can call this "property settlement" or "financial settlement" in Australia. Depending on the settlement, you and your former partner will receive more than the other. Sometimes, a 50/50 division is also possible.
The amount is not guaranteed since all financial and property cases are unique. So, the court will use a list of items that comes under "property" below for divorcing couples:
- Jointly owned assets (A clear understanding of joint finances is crucial in dividing property, money, and debt can help in property settlement matters);
- Investment properties
- Business interests;
- Superannuation;
- Interests in company;
- Family trusts and other trusts;
- Funds or interests that a party has control over
- Any other assets relevant to the case
Do all of the items above apply to you? Are there more that you want to add? Then you might want to keep reading this article, so you know your obligation and rights as a party to ad divorce.
Divorce Settlement Calculator: Other Family Law Considerations
In Australia, courts aim a settlement that is fair and reasonable, taking into account each parties' current and future earnings and resources. Putting this into consideration, courts will need to consider each family's unique circumstances and make property settlement or divorce settlement orders accordingly.
In this section, we discuss certain factors that influence how parties carry out divorce settlement. These factors are a part of a divorce settlement calculator, as parties closely analyse them before making any binding agreements, or before courts make any binding orders.
A divorce calculator will factor either in financial contributions (inheritances and gifts), or non-financial contributions (home-making and primary caregiver duties). So, courts will conduct a comprehensive asset liability identification which includes both marital and non-marital assets and liabilities, whether owned jointly or individually.
Another thing to consider is the future needs of each party which can influence property settlement which include:
- Age of both parties
- Their ability to get gainful employment
- Their physical health and whether they are healthy enough to be employed
- Financial resources of the two parties
- Amount of time the two parties spend/will spend to look after the children from the relationship
How Long Was the Duration of the de Facto Relationship?
Some de facto couples may forget that they also have rights to property settlement, but this is not the case. People in a de facto relationship can also use this list so that they can settle their assets after separation.
The court will also consider the relationship's duration since this can affect the weight given to initial and later contributions in settlements. While there is no exact duration that defines short term and long-term relationships, longer relationships will involve a lot of contributions from one or both parties.
If we consider the factors mentioned above, people in longer relationships may have made in many assets and liabilities. Moreover, during a longer relationship, partners may already have had children.
The Legal Obligation of Each Party
Full Disclosure of Assets
One primary legal obligation of each party in a property settlement is to provide full disclosure of their assets such as bank accounts, investments, and property necessary for the property settlement. They should not hide anything to their partner, as mentioned, courts will ensure that each party will receive a fair settlement share during asset division.
Spousal Maintenance
Another legal obligation of each party is to providespousal maintenance which is an important part of a divorce settlement calculator. Spousal maintenance involves an assessment of financial reources, needs, and the standard of living of each party.
Spousal maintenance is a type of financial assistance given to another spouse. In Australia, spousal maintenance eligibility depends on the applicant proving their financial situation is not enough to support themselves while the other party can.
The payer of spousal maintenance cannot deduct it from their taxable income, while the recipient does not have to report it as taxable income. Now, you may ask yourself how long does this obligation last. There's no exact answer but the average length of spousal support payments will last for two years, considering significant variation among cases.
Child Support
Every parent has to provide child support to their child, whether they are married, divorced, or separated. This is a moral and legal obligation of each parent. Usually, child support will stop when the child turns 18. Even if the child suffers from severe mental or physical disabilities, parents will have to continue supporting them.
How Can Binding Financial Agreements Help?
Two parties can enter into a binding financial agreement or a BFA if they wish to make agreements about the division of assets.Parties can enter into binding financial agreements either before their relationship, during their relationship or after their relationship has ended. In legal terms, we call the former a prenuptial agreement and the former a post nuptial agreement.
If either party breach this agreement, the offender can receive a penalty. Before parties enter into a binding financial agreement, they must seek legal advice since it is essential for navigating the complexities of property division.
Once they have consulted with lawyers and have reached an agreement regarding division of assets, they can let their family lawyers finalise their BFAs.
Parties have to comply with the orders, and failure to do so will be considered contempt of court. This can result in the non-complying party facing severe punishment such as heavy fines or even imprisonment in extremely serious cases.
Divorce Settlement Calculator: Is a 50/50 Split Fair?
To finalise a divorce settlement calculator procedure, is for the court to suggesrt a fair division of assets and liabilities between parties. We may think that a 50/50 division is the best option, right? No, it is not equitable and may cause a lot of tension between parties in property settlement cases.
As we have seen, there are various factors that influence who gets how much following a divorce or separation. What if one party made significant contributions to the marital home, is the provider of the household, and is the primary caregiver? This is unfair for such a person, which is why a 50/50 split is not always the best option.
Read: Can My Girlfriend Take Half My House Australia? | JB Solicitors
The Role of Mediation in a Divorce Settlement Calculator
Former spouses are always encouraged to agree among themselves, rather than approaching family courts. Where two parties are unable to have healthy discussions, they will be required to attend family dispute resolution or mediation.
Mediation is a very famous family dispute resolution service that can help couples reach an agreement without court interference. Courts will always urge disputed couples to use this method before they take things to court.
Are You Unsure About Your Divorce Settlement Calculator?
Family lawyers offer a range of services to all parties who find themselves in the midst of a family law matter. Whether this is to do with preparing financial agreements, mediation or court representation, our lawyers are here for you.
At JB Solicitors, our family lawyers have a wealth of experience in dealing with a variety of family law matters. We have the experience to deal with contentious divorce matters that involve high-conflicts and high net worth property settlement cases. We can help you calculate your assets and help you and your ex partner divide them fairly and equally.
For more enquiries about divorce settlement in Australia, please do not hesitate to contact our friendly family law solicitors today.
Contactus for your legal needs.
Do You Need Help With Property Law Matters Instead?
Sometimes, it's not just divorce that can stress our clients. Sometimes, property law or conveyancing matters can also get in the way with family law matters. On other matters, you might be a new couple looking to buy a new house. Thankfully, we also have lawyers who specialise in such matters.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
