What property is up for grabs in property settlement proceedings?
When it comes to family law, property settlements are often one of the most hotly debated. To answer the question of what is up for grabs, in short, all of it. One of the first steps taken in a property settlement proceeding is to determine what property is to be included within the property pool schedule available for distribution between the parties.
What can be included in a property settlement?
The following is a list (not exhaustive) of the assets, liabilities, and superannuation entitlements which might be included in any given property settlement:
- Real property including house, land, townhouse, unit, etc.
- Motor vehicles including cars, motorcycles, boats, jet skis, trailers etc.
- Shares
- Furniture and tools
- Art and antiques
- Banking accounts
- Loans including personal loans, credit cards, HELP debt, tax debt, etc.
- Superannuation entitlements
- Interest in trusts, companies, partnerships, businesses, etc.
All of the property held in your name, their name, and joint names together goes into the property pool schedule and is technically available for distribution between you.
From a practical standpoint, most often, parties each keep the motor vehicle they drive, and they usually each keep the assets they consider to be ‘theirs’ such as personal items, family relics, and so on. Then, the remaining assets (often the house, shares, banking accounts, and superannuation) are divided between the parties.
How can property be divided?
Your lawyer should provide you with advice about how your property may be divided between you and your former partner. Some examples of what can occur are:
- A superannuation split might occur to ‘even up’ the amount of superannuation held by both parties before the net sale proceeds of the house are also split.
- If one party has a particular attachment to their superannuation, they may choose to retain it and forego more of the sale proceeds of the house.
- One party might choose to retain the house and pay the other a cash settlement sum while each keeps their own superannuation.
The ultimate outcome of property distribution is unique to every matter. How the assets are divided depends on a range of factors including what is important to the parties themselves and what they each want for their own future.
Any advice is general in nature, may not apply to your specific situation and must not be relied upon as legal advice. In instances of family law, situations should always be evaluated on a case-by-case basis. As such, we always recommend you seek specific advice tailored to your circumstances. Please feel free to get in touch if you would like to discuss your matter.
