03 February 2025
When considering a divorce, or when in the process of a divorce, couples may wonder what they and their partner will be entitled to in the final split of assets. Unfortunately, there’s no cut and dried answer as to what a partner will be entitled to in a divorce settlement, as each individual divorce is unique, and the personal and financial circumstances of each couple will differ. However, in this article, we’ll look at the factors involved in determining a split of assets after a divorce.
A set of family law principles, mainly principles under the Family Law Act 1975, determine how assets are divided during a divorce in Australia. The primary goal of these principles is that the ultimate division of assets between a married or de facto couple is just and equitable. Included in considerations are both financial and non-financial contributions made by each party during the marriage or de facto relationship. Therefore, there is no fixed formula for dividing assets. It will vary, according to your situation.
When working out what is a fair and equitable division of property between divorcing parties, the court will consider the following key factors:
Each party’s contributions
During a marriage or de facto relationship, each party will make contributions to partnership, whether those contributions are financial or non-financial.
Financial contributions that are considered in a settlement agreement include:
Savings
Income
Assets brought into the marriage or de facto relationship
Assets acquired whilst married or in de facto relationship
Non-financial contributions considered in a settlement agreement include work and time contributed to:
Raising children
Managing household duties
Homemaking.
Each Party’s Future Requirements
It’s not only the present circumstances of each party that are considered in a divorce settlement. Future needs are also factored in. These include:
The earning capacity of each party
Their age
Their health
The financial responsibilities of each party.
So if a husband was to ask his lawyer, what is my wife entitled to in a divorce in Australia?, the lawyer will ask questions about whether or not the couple had children, who the primary carer was during the marriage. If the wife was the primary carer for a period of time during the marriage, her earning capacity would likely have been impacted during that time. Also, having taken time away from the workforce, her future earning capacity may have been hindered.
Each Party’s Current financial status
The property, income, and financial resources of each party in the relationship are considered in the settlement.
Liabilities are also factored in as part of asset division in a divorce. Credit card debts, personal debts, loans, and mortgages will all be considered in a settlement evaluation.
Parental responsibilities
If divorcing parties have children, the ongoing roles and responsibilities of each parent are factored into the decision on settlement.
Other relevant matters
There may be unique circumstances that a court deems to be important in a divorce settlement.
What a Wife May Be Entitled To in a Divorce in Australia
Regardless of whether or not you are talking about a husband, a wife, or a de facto partner, parties are entitled to a fair and equitable share of the property and the assets which were acquired during the marriage or de facto relationship. These may include:
Investments
Savings
Vehicles
A share of the family home
Superannuation funds accumulated during the marriage/de facto partnership
If one party can’t support themselves adequately after a divorce, the court may order spousal maintenance be paid to them by the other partner. Spousal maintenance support is calculated based on:
The financial resources and income of each party.
Future living requirements, factoring each party’s age, health, and care responsibilities.
As we mentioned above, there is no automatic 50/50 split in divorces in Australia, so assets aren’t necessarily equally divided. Rather, assets are split, based on individual circumstances, with the aim of a fair and equitable distribution.
So if you are asking, what is my wife entitled to in a divorce Australia?, then seeking legal advice from divorce lawyers in Australia will help you gain a clearer picture. A lawyer will shed light on what will be factored in, however, won’t necessarily be able to tell you what the final settlement will be.
Mediation or Family Dispute Resolution (FDR) are recommended to help you and your wife resolve any disputes you may have in regards to property settlement. This keeps matters out of court.
If you do end up going to court, a court will decide on the distribution of assets, and make legally binding orders.
If you are needing advice on divorce in Australia, contact Aitken Partners. Our divorce lawyers can help our clients achieve mutually agreeable and respectful divorce outcomes. We are proud to be recognised as leading divorce lawyers in Australia.