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Is property always divided equally in a property settlement?
Discover how courts divide property settlements, considering contributions and future needs. Unequal division explained.
How the Property Pool is Divided
Property settlement is not always divided equally or on a 50/50 basis in a property settlement. To determine the property pool the court includes all assets and liabilities in the parties sole and joint names and there current value and not what you bought it for or what it was worth when you separated.
Factors Contributing to the Division of Property.
The courts concern and decision as to what percentage you each receive of the net pool will be based upon;
1) initial contributions - what you both brought into the relationship
2) financial and non-financial contributions during the relationship
3) financial contributions post separation
4) what your respective future needs are e.g. what income do you each receive, are there any reasons why income earning capacity may be effected and anything else which means one or both of you should receive a % adjustment in their favor.
1) initial contributions - what you both brought into the relationship
2) financial and non-financial contributions during the relationship
3) financial contributions post separation
4) what your respective future needs are e.g. what income do you each receive, are there any reasons why income earning capacity may be effected and anything else which means one or both of you should receive a % adjustment in their favor.
Deducting of Liabilities in the Property Pool.
The court take the total net value of all of the assets, deducts the liabilities which gives a net value and then the pool gets divided on that percentage. The assets get divided and depending what the overall value gives you and the other party as a percentage of the overall pool you may need to give or receive some cash and / or super to give you your correct percentage e.g. if with what you are keeping you end up with 30% but should receive 50%, you would receive enough cash and / or super to give you 50%.
Deducting of Liabilities in the Property Pool.
The court take the total net value of all of the assets, deducts the liabilities which gives a net value and then the pool gets divided on that percentage. The assets get divided and depending what the overall value gives you and the other party as a percentage of the overall pool you may need to give or receive some cash and / or super to give you your correct percentage e.g. if with what you are keeping you end up with 30% but should receive 50%, you would receive enough cash and / or super to give you 50%.
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