Property Settlements Under Family Law Act Melbourne

Section 79 of the Family Law Act 1975 provides the legal framework for property settlements between married couples in Australia. This legislation empowers the Family Court to make orders altering property interests to achieve a just and equitable division of assets and liabilities accumulated during the marriage. Understanding how the Act operates is crucial for achieving fair outcomes in property settlements.

The Family Law Act takes a holistic approach to property division, considering both financial and non-financial contributions, future needs, and what is just and equitable in all circumstances. Working with experienced property settlement lawyers who understand the nuances of the Act can significantly impact your financial future post-separation.

The Four-Step Process Under Section 79

1 Identify and Value the Property Pool

The court first determines what constitutes the asset pool, including:

Real estate and personal property
Bank accounts and investments
Superannuation entitlements
Business interests and trusts
Debts and liabilities

2 Assess Contributions

The court evaluates both parties' contributions:

Financial contributions: Income, property, inheritances
Non-financial contributions: Homemaking, parenting, property improvements
Initial contributions: Assets brought into the relationship
Post-separation contributions: Ongoing financial support

3 Consider Future Needs (Section 75(2) Factors)

Adjustments may be made based on:

Age and health of parties
Care of children under 18
Income and earning capacity
Financial resources
Length of marriage

4 Determine Just and Equitable Orders

The court makes final orders that are just and equitable, considering all circumstances and ensuring neither party is left in a significantly disadvantaged position.

Key Provisions of the Family Law Act

Time Limits (Section 44)

Applications must be made within 12 months of divorce becoming final. Extensions may be granted in hardship cases or with consent.

Binding Agreements (Section 90)

Parties can make binding financial agreements to avoid court proceedings, subject to strict legal requirements.

Superannuation Splitting

The Act allows superannuation to be split between parties, treating it as a separate type of property with specific valuation methods.

Court Powers (Section 80)

Wide powers to make orders including property transfers, sales, injunctions, and appointment of trustees.

Just and Equitable Principle

The overriding principle in all property settlements is achieving a result that is "just and equitable." This doesn't necessarily mean an equal 50/50 split. The court considers:

The unique circumstances of each case
Both parties' needs and resources
The welfare of any children
The economic consequences of the relationship
Any special circumstances or hardship

De Facto Relationships

Since 2009, de facto couples have similar property settlement rights under the Family Law Act, provided they meet certain criteria:

Relationship of at least 2 years duration, or
A child of the relationship, or
Significant contributions with serious injustice if no order made
Application made within 2 years of separation

Important Considerations

Full and frank disclosure of all assets is mandatory
Failure to disclose can result in orders being set aside
Pre-marital agreements may influence outcomes
Tax implications should be carefully considered
Legal costs can be taken into account in settlements

Property Settlements - Family Law Act

Property Settlements Under the Family Law Act 1975