A common question with property settlements after the breakdown of a marriage or relationship is, ‘If I owned it before the relationship or marriage, is it excluded from my property settlement?’ The short answer is that it depends on the circumstances.
Generally, it is more likely that assets or property owned before the relationship or marriage will still form part of the property pool for division.
The definition of property under the Family Law Act is expansive and effectively includes everything each person has, regardless of whose name the asset is in.
- Ascertain the assets and liabilities of the relationship;
- Consider the contributions of each person;
- Assess the future needs of each party; and
- Ensure that the overall division is just and equitable.
Property that either party owned at the commencement of the relationship or marriage is likely to form part of the property pool and to be considered an initial financial contribution. How much weight is given to that contribution depends on a number of things:-
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- Whether the asset was applied to the pool to benefit the other party or increase the value of the property pool.
- The efforts and contributions of each party to increase the value of the particular asset during the relationship or marriage.
- The length of the relationship.
- Whether the asset was kept separate during the relationship/marriage or was the asset intermingled with the relationship or matrimonial property.
Each relationship is unique, and many factors are considered before determining whether an asset can be excluded from the property pool. It is rarely the case that an asset is excluded from the property pool, and it is more likely to be considered an initial financial contribution.
If you have questions about separation, property division, or family law, contact an experienced collaborative family lawyer today at 1300 414 855—experts in amicable separations and divorce.