In Australian family law, financial resources include a broad range of assets, income, and entitlements. Whether it’s for property settlements, spousal maintenance, or child support, knowing what is considered a financial resource and how it impacts your case can make a significant difference.
I. Financial Resource vs Property
What is the difference between a financial resource and property in family law?
In Australian family law, property and financial resources are terms that can often be confusing. Simply put, property includes things you own, like your house, car, and savings. It also covers superannuation (retirement funds), businesses, and investments. In family law, property is divided between the parties when a relationship breaks down.
On the other hand, a financial resource is something that may not be in your hands right now but can give you a financial benefit in the future. For example, a future inheritance, a trust fund where you don’t control the money but benefit from it, or income from a family business that you’re not directly involved in are considered financial resources.
The key difference is that property is something you already own, while a financial resource is something that can help you financially in the future, even if you don’t have it right now.
II. Are Financial Resources Included in Property Settlement?
Can financial resources be taken into account during a property settlement?
Yes, financial resources are considered during property settlements in Australian family law. When dividing assets, the court looks at everything that could impact your financial situation, both now and in the future. This means financial resources, even though they are not property, can still influence the outcome of a settlement.
For example, if one partner has access to a trust fund or is expecting a large inheritance, the court may take that into account. This is because even though the trust fund or inheritance may not be part of the property pool, it affects the financial position of that person, potentially giving them a financial advantage in the future.
In practical terms, this could mean that a partner with fewer financial resources might receive a larger portion of the property to make up for the difference in future financial advantages.
Also Read: How Are Assets Divided In A Divorce Australia?
III. Can the Government Aid Be Considered as a Financial Resource?
Is government assistance, like Centrelink payments, considered a financial resource?
Government aid, such as Centrelink payments, is generally not considered a financial resource in family law. This is because such assistance is designed to help individuals meet their basic living expenses, not to provide an ongoing financial advantage. However, the court does consider the income of both parties, which can include government assistance when assessing a fair division of property.
For example, if one partner is on a pension or receiving unemployment benefits, the court may consider this when deciding how much they should receive in a property settlement. But the payments themselves are not usually treated as a financial resource in the same way a trust fund or future inheritance might be.
It’s also important to note that some benefits, like child support or spousal maintenance, are separate from property settlements and can be decided independently.
IV. Why is It Important to Identify Financial Resources?
Why is it crucial to understand and identify financial resources in family law cases?
Identifying financial resources is important because it ensures that both parties have a clear picture of their financial situations, both now and in the future. In family law, the goal is to make sure that the division of property is fair. If one person has access to financial resources that the other does not, this can create an imbalance.
For example, if one partner stands to inherit a significant amount of money in the future, this financial resource could provide them with long-term financial security. If the court is aware of this, they might give the other partner more property to balance things out.
Failing to identify financial resources can lead to an unfair property settlement, where one party is left at a disadvantage while the other benefits from future financial gains. For this reason, it’s important to be open and honest about any financial resources you may have, even if you don’t currently have control over them.
Also Read: Severe Penalties for Hiding Assets During a Divorce
Your Financial Future is Worth Protecting
Understanding financial resources in Australian family law is crucial to achieving a fair outcome during property settlements. These resources, while not tangible assets like property, can significantly impact your financial situation after a separation or divorce. From future inheritances to trusts and other financial benefits, identifying and considering all financial resources ensures that both parties can move forward on equal footing. Remember, fairness in family law doesn’t just cover the here and now — it looks at the future too.
Looking for Expert Family Law Advice?
At Justice Family Lawyers, we are dedicated to helping you protect your financial future. If you have questions about financial resources in your family law case, or need guidance on property settlements, spousal maintenance, or child support, our experienced team is here to assist. Contact us today to schedule a consultation and take the next step toward resolving your family law matter with confidence.