Do Overseas Assets form Part of the Property Pool In Australia?   Overseas assets and liabilities form part of the asset pool and are taken into account in any settlement of property between…

What happens to a business in a divorce? Any interest in a business or company can be considered property in a divorce or property settlement. It does not matter what…

When it comes to negotiating a property settlement, extra stress can arise when you have differing opinions about what should happen with the family home. Usually, one party wants to…

Premarital assets   Is a house owned before marriage marital property?  Marital property refers to property acquired during the course of a marriage. In contrast, there is also separate property, which…

What is spousal maintenance? Spousal maintenance is a form of financial support available to a party during a separation.   It is usually understood to be payments made to the other…

What Happens to Post-Separation Assets?  Parties can build up significant assets after separation and should be aware of how those assets are treated in family law proceedings. Property that is…

The Family Court considers debts as genuine if they are for proper purposes. A good purpose might be to move out of the house or to pay for maintenance on an existing asset. If the debt is for gambling or another activity, then that debt is seen to be dissipating the asset pool. If a party wastes the asset pool after separation, then a lawyer might make what they call a 'wastage' argument.

If something is a loan, then it will need to be paid back out of the property pool, whereas the property pool will include gifts. Disputes often arise as to whether an asset or money is a loan or a gift, and then if it is a gift whether or not it is a joint or sole gift. If it is a joint gift, it is a joint contribution; if it is a gift to one person, it is considered a sole contribution.

It is no secret those that come out of family law unscathed are those that reached a mutual agreement and formally documented that agreement early. Many separating couples are amicable at some point and agree on things without lawyers. However, it's at that exact point separating couples need to inject some law into the agreement and formalise it.

Family law property settlements are not calculated on the date of separation but at the date of final orders or agreements. That means assets can be included in the property pool even if they get obtained post-separation. It depends on the type of asset as to whether it gets included in the property asset pool.