That is (sometimes) the million-dollar question. In determining what a client is worth in a property settlement, we (and the Court) utilise a 4 step process.
The 1st step is to determine the value of the net asset pool that is available for division between the parties. This includes adding up the value of all the assets (whether in one party’s name or joint names), taking away all the liabilities, and then working out the net equity.
Remember, both parties’ superannuation forms part of the net asset pool also.
The 2nd step is to assess each party’s respective contributions to the net asset pool. This includes financial and non-financial contributions. Financial contributions include inheritances, windfalls, and the like. Non-financial contributions include homemakers and parenting the children.
The 3rd step involves considering the parties’ future needs and adjustments are made accordingly. This includes considering the party's ages, states of health, whether there is an income disparity, and who is going to be the primary caregiver to the children moving forward.
The 4th and final step requires an assessment of what is a just and equitable property settlement agreement. Meaning, what would be a fair settlement outcome to the parties.
To receive advice on your personal situation and circumstances, contact the team at James Noble Law today and make an appointment.
Also, learn 4 Key Points To Note About Property Settlement
Article Source: Property Settlement