If you’re separating from your partner, one of the questions you might ask is, “who will get what, could it be as high or as low as a 70/30 divorce settlement?”
Divorce settlement division is a confusing topic and causes fights among divorcing partners.
In this blog post, we unpacked everything you need to know about divorce settlements and how the Australian Family Court divides them.
What is a 70/30 divorce settlement Australia?
A 70/30 divorce settlement means that one party of the marriage will receive 70% of the total value of the asset pool. The other party will receive 30%.
Contrary to popular belief, the distribution of assets between divorced couples is not 50/50.
Many people falsely assume that when couples file for a divorce, they are entitled to half of each other’s properties.
However, this is only sometimes the case.
The Family Court always aims to make the fairest decision possible when separating divorce settlements. s79 of the Family Law Act gives the power to the courts to determine how a divorce settlement must be portioned.
In some cases, a 70/30 divorce settlement might seem appropriate.
But how does the court decide who receives the 70% share and who’s left with the remaining 30%?
How Common Is a 70/30 Divorce Settlement?
A 70/30 divorce settlement in Australia may come about in a number of ways.
Here are some examples of how a court may determine a 70/30 divorce settlement.
- First example: A court may determine that the contributions of the parties was 50/50, and that the wife should receive a 20% adjustment for her future needs, being that she has 3 children and has a much lower earning capacity than the husband. This will result in a 70/30 split.
- Second example: A court may determine that one party has contributed much more the relationship than the other. A husband came into a relationship with significantly more assets and a much stronger financial position than the wife. After a 5 year relationship, the court could determine that the contirbutions of the husband were at 75%, however the future needs of the wife warranted a 5% adjustment on behalf of the wife, resulting in an overall 70/30 divorce settlement.
Is a 70/30 split just and equitable?
As the final step, the court will evaluate if their decision was equitable or fair between both parties.
The court will consider whether a 70/30 divorce settlement is just and equitable, and may make necessary adjustments if they believe or were presented with viable evidence supporting that their decision was unfair.
Many people think they have no control over what they can retain during this process, but the truth is you can protect your assets to a certain degree. One legal tool you can utilize is a binding financial agreement, such as a prenuptial agreement.
If you are separating from your former spouse amicably, both of you can agree on what assets and debts you will divide among yourselves.
An experienced property settlement lawyer can help you identify the best way to proceed with a 70/30 divorce settlement. They can also help open up various legal options you never thought of.
If you’re entering a divorce settlement adjustment, it’s beneficial to have the legal guidance of an experienced family lawyer.
Contact us today to get started on your consultation.
Principal of Justice Family Lawyers, Hayder specialises in complex parenting and property family law matters. He is based in Sydney and holds a Bachelor of Law and Bachelor of Communications from UTS.