The aim of the Property Settlement Calculator is to assist you in estimating what a fair and equitable division of property would be in the event that your relationship has irretrievably broken down. Thus, understanding this Property Settlement Calculator will be easier through case studies.
The assumptions we have used in the Calculator were formulated after investigation of actual case history and rulings by Courts. We have also asked experienced family law practitioners to test the assumptions used in the calculator to see if the results a reasonably consistent with their own estimated equitable division of assets.
The aim of the Calculator is to provide a basis for discussion between the parties in the hope that an agreement can be reached so that the parties do not become victims of protracted and expensive negotiations between their respective advising lawyers.
Once the parties have agreed on the terms of settlement, the settlement can be documented by way of a Binding Financial Agreement or Consent Orders.
If you cannot reach agreement, then the decision may have to be made through the Courts.
There are no fixed rules employed by the Federal Circuit Court and Family Court Judges in reaching a decision regarding property settlements. Judgements seem to be based on a combination of common sense and the experience of the Judge, and are wholly dependent on the specific facts that surround each individual case.
While AussieLegal has taken every care in formulating the assumptions on which the Calculator is based, the results produced by the Calculator are in no way a guarantee of the outcome of your case.
Any results provided by the Property Settlement Calculator are not legal advice and do not purport to be legal advice. If you wish to assess the suitability of any information provided in this case study and by the Calculator, you should call AussieLegal on 1300 728 200 or obtain legal advice from a lawyer.
The table below contains a summary of the input data used in the Calculator. Please feel free to experiment by inputting the data for your circumstance.
Take note that understanding the AussieLegal Property Settlement Calculator can also be done by checking it out by yourself. This is done since you can navigate the comprehensive explanation of the influences and assumptions used in the Calculator.
Length of relationship | |||
Length of relationship | 1/08/2013 | 1/8/2023 | 10.00 years |
Influence of the age of children of the relationship | |||
Age of child 1 | Age up to 5 years |
| 15% influence |
Age of child 2 | Age 5 to 12 years |
| 5% influence |
Age of child 3 | N/A |
| 0% influence |
Age of child 4 | N/A |
| 0% influence |
Influence on the time spent with each parent (days per fortnight) | |||
| You | Your partner |
|
Days per fortnight | 0-2 | 12-14 | 100% factor |
Influence of future health needs | |||
| You | Your partner |
|
Significant chronic health condition? | No | No | 0% factor |
| Basic assets and liabilities at the start of your relationship | |||
Asset | You | Your partner | |
Bank & credit union accounts | $50,000 | $0 | |
Real estate (primary residence) | $0 | $0 | |
Cars, boats & other vehicles | $0 | $0 | |
Investment accounts | $0 | $0 | |
Furniture & personal possessions | $0 | $0 | |
Superannuation | $0 | $0 | |
Liabilities | You | Your partner | |
Credit cards | $0 | $0 | |
Mortgages | $0 | $0 | |
Personal loans / car loans | $0 | $0 | |
Other debts | $0 | $0 | |
Net basic assets at the start of your relationship | |||
$50,000 | $0 | ||
Basic assets and liabilities at the time of separation | |||
Asset | You | Your partner | |
Bank & credit union accounts | $5,000 | $0 | |
Real estate (primary residence) | $500,000 | $500,000 | |
Cars, boats & other vehicles | $0 | $0 | |
Investment accounts | $0 | $0 | |
Furniture & personal possessions | $0 | $0 | |
Superannuation | $120,000 | $40,000 | |
Liabilities | You | Your partner | |
Credit cards | $6,000 | $0 | |
Mortgages | $200,000 | $200,000 | |
Personal loans / car loans | $0 | $0 | |
Other debts | $0 | $0 | |
Net basic assets at the time of separation | |||
$419,000 | $340,000 | ||
Net capital gain | $369,000 | $340,000 | |
Non-basic assets and liabilities at the start of your relationship | |||
Asset | You | Your partner |
|
Family or other discretionary trusts | $0 | $0 |
|
Private businesses | $0 | $0 |
|
Inheritances | $0 | $0 |
|
Family farms or rural properties | $0 | $0 |
|
Liabilities | You | Your partner |
|
Private business debt | $0 | $0 |
|
Mortgages | $0 | $0 |
|
Personal loans | $0 | $0 |
|
Other debts relating to non-basic assets | $0 | $0 |
|
Net non-basic assets at the start of your relationship | |||
| $0 | $0 |
|
Non-basic assets and liabilities at the time of separation | |||
Asset | You | Your partner |
|
Family or other discretionary trusts | $0 | $0 |
|
Private businesses | $0 | $0 |
|
Inheritances | $0 | $50,000 |
|
Family farms or rural properties | $0 | $0 |
|
Liabilities | You | Your partner |
|
Private business debt | $0 | $0 |
|
Mortgages | $0 | $0 |
|
Personal loans | $0 | $0 |
|
Other debts relating to non-basic assets | $0 | $0 |
|
Net non-basic assets at the time of separation | |||
| $0 | $50,000 |
|
Net capital gain | $0 | $50,000 |
|
|
|
|
|
Total net assets at the time of separation | $419,000 | $390,000 |
|
How is the split of assets calculated? | You | Your partner |
Share of basic assets from the start of the relationship to the time of separation | $25,000 | $25,000 |
Share of accumulated basic assets from the start of the relationship to the time of separation | $212,700 | $496,300
|
Share of accumulated non-basic assets from the start of the relationship to the time of separation | $2,500 | $47,500 |
Share of all net assets | $240,200 | $568,800 |
| 30% | 70% |
The Court must then consider each parties’ respective contributions to the marriage – both financial and non-financial. Jack was the main breadwinner and provided the initial deposit towards the purchase of their home. Jill was the primary carer for their children, has contributed her inheritance, added to the value of the home with DIY projects. Given the length of the marriage, the initial asset contributions by Jack and Jill’s role as home maker, the Court is fairly likely to consider the financial and non-financial contributions of each equal, and there fore the capital gain from all basic assets as shared equally.
With respect to the basic assets that Jack had at the start of the relationship, Jill would be entitled to 5% of jack’s basic assets at the start of the relationship for each year they were together. In this case that means that Jill gets 50% of those starting basic assets. If the relationship were to have lasted 5 years, then Jill’s share would be 25% of Jack’s starting assets.
Superannuation would be included as a basic asset for the purposes of the calculation of the division of assets.
With respect to the non-basic assets such as Jill’s inheritance, the Court will usually allow the party who has control of this group of assets to retain ownership. However, the other party will have the right to a small share in the growth in these assets during the period of the relationship. They will also be entitled to a further share if they made any material, direct contribution to the development of maintenance of that asset. In Jill’s case, her inheritance was placed in a deposit account and thus Jack’s claim will be limited to a small share of 5%.
The Court must then consider the factors contained in section 75(2) of the Family Law Act where relevant. In this case the relevant factors will include the length of the marriage and the fact that Jill has made a career sacrifice to look after her children. This will affect her future earning potential. There is also the significant responsibility of Jill continuing in being the primary carer of the 2 young children. Both these factors mean that the percentage division of the assets will be adjusted in Jill’s favour.
In this Case study, the effect of the children has skewed the % split 20% in favour of Jill as she is the primary carer. All else being equal, this would result in a % split of 30%/70% in favour of Jill.
If you wish to have a deeper understanding of the AussieLegal Property Settlement Calculator, you can test it out at any time.
Once you have reached an agreement on your division of assets, you have 2 options to document your settlement formally. We recommend that you make an informed choice based on the most cost effective way while meeting the requirements to be EXEMPT FROM STAMP DUTY and making sure the agreement is FULL AND FINAL FINANCIAL SETTLEMENT.
AussieLegal works with a panel of independent law firms across Australia who provide the legal advice and certification so that the BFAs are fully enforceable in the Courts.
For more information on the documentation phase of the process, please visit our Binding Separation Agreements and Consent Orders.
