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Is it Always 50/50? Navigating Divorce Property Settlement in Melbourne
When a relationship ends, one of the biggest questions people face is how their property will be divided. Many assume assets are automatically split 50/50, but the reality is far more complex. Financial matters after separation can involve real estate, superannuation, business interests, investments, and debts, and the way these are divided depends on many factors, not just equality.
Understanding your rights and the process early can make a significant difference to both the outcome and your peace of mind. Speaking with an experienced property settlement lawyer in Melbourne can help you navigate this complex process effectively.
What Is a Property Settlement?
A property settlement is the legal process of dividing assets, liabilities, and financial resources after separation. It applies to both married and de facto couples, including same-sex relationships.
Settlements may include:
- Real estate and investment properties
- Superannuation interests
- Businesses, trusts, and shareholdings
- Bank accounts, vehicles, and personal belongings
- Debts such as mortgages, loans, and credit cards
Importantly, a property settlement after divorce is not automatic, and there is no assumption of an equal split. Each case is assessed individually under the Family Law Act, taking into account financial contributions, non-financial contributions such as homemaking or parenting, and future needs.
Divorce and Property Settlements Are Separate Matters
It’s common to confuse divorce and property settlement. A divorce legally ends the marriage, but financial matters can be finalised either before or after the divorce is granted.
- Married couples: Court proceedings for divorce and property settlement in Melbourne generally need to start within 12 months of a divorce becoming final.
- De facto couples: The time limit is usually two years from the date of separation.
Early advice is crucial to ensure your rights are protected and deadlines are met, regardless of whether the divorce has been finalised. Consulting a property settlement lawyer in Melbourne early can make a significant difference to both outcomes and timelines.
How Courts Decide Property Division
When property matters reach the court, judges consider not only who contributed what financially. Key factors include:
1. All assets and liabilities: Every item that forms the joint asset pool is considered.
2. Contributions by each party: This includes financial contributions (income, investments) and non-financial contributions (home duties, parenting).
3. Future needs: Age, health, earning capacity, and responsibilities for children are considered.
4. Justice and fairness: The court aims for an outcome that is just and equitable, rather than automatically equal.
Even if one party earned more or contributed more financially, other factors can influence how assets are ultimately divided, highlighting the importance of consulting a property settlement lawyer.
Property Settlements for De Facto Relationships
De facto relationships, including same-sex partnerships, are assessed under the same legal framework as married couples if certain criteria are met. This includes property, superannuation, and other financial resources.
Our experience shows that understanding eligibility and time limits for property settlement de facto matters can prevent delays and preserve options. Knowing what steps to take early can make negotiations smoother and less stressful.
Practical Tips for Navigating Property Settlements
1. Seek advice early: Understanding your entitlements and the likely outcome before negotiations can help avoid disputes.
2. Consider negotiation or mediation: Many matters can be resolved without going to court, saving time and cost.
3. Keep clear records: Document assets, liabilities, and financial contributions to support your position.
4. Understand superannuation rules: Super is treated as property and usually divided between funds, not converted to cash.
5. Stay aware of deadlines: Missing the time limit for filing can impact your rights, particularly for de facto couples.
Being informed about these steps can help reduce stress and give you more control over the outcome. Working with an experienced asset division lawyer ensures your financial and non-financial contributions are properly documented and considered throughout the process.
Act Early to Safeguard Your Interests
Property settlements are rarely simple, and there is no standard outcome. By understanding your position, the law, and the factors that influence division, you can approach the process with clarity.
Aston Legal Group has been recognised in the Lawyer International – Legal 100 Awards, reflecting our commitment to providing clear, practical guidance and client-focused support for property settlement matters. If you are navigating a property settlement in Melbourne, we are here to help.
Book a free consultation to discuss your situation and understand your options.