How the Court Determines Entitlements in Family Law Property Settlements in NSW
Understanding how contributions, future needs, and the asset pool affect your property settlement after separation
When couples separate in New South Wales and Australia, the process of working out what you are entitled to isn’t a clear math exercise and each person’s property settlement will be unique.
The first step is identifying the asset pool. What are the assets and liabilities of each person individually and jointly?
Once the pool of assets, liabilities, and superannuation has been determined, we have identified the available pool for division. If you think about it like a pie. We now know the size of the pie. But now we need to work out how to cut up the pie.
To determine how to divide the pie, we must consider the contribution each person made to the pie and the future needs of each party.
These steps are essential because they help ensure that the division of property is both fair and tailored to the unique circumstances of each relationship.
Assessing Contributions
To work out how much of the pie you are entitled to, we first consider what contributions you made to the relationship. How did you contribute to the acquisition, improvement and maintenance of each asset or the asset pool as a whole & to the relationship. Contributions can be financial and non-financial and direct and indirect.
When we are assessing contributions, we ask a lot of questions, like:-
- Did you own assets prior to the relationship?
- How were the assets purchased or acquired? Was it your savings that paid for the deposit or did you receive an inheritance that allowed you to purchase an asset?
- Did your family give you or loan you money to enable a purchase?
- Did your family guarantee your mortgage to enable you to purchase?
- Did you or your family do unpaid work to renovate or improve an asset?
- Did you stay home and provide parenting and homemaking duties, which allowed the other person to provide an income?
We carefully consider the contributions made by each party and how much weight should be attributed to each contribution. This is how we start to work out what percentage of the asset pool each party is entitled to.
- It may be argued that a party made a negative contribution if they wasted funds such as through gambling or financial mismanagement.
- Allowances and adjustments may also be made in circumstances where there was family violence and such violence made it more difficult for a party to make their contribution.
Determining Future Needs
After we assess how much of the pie you should get based on your contributions, we then need to ask “ does there need to be an adjustment for either parties future need?”.
Essentially, we consider both parties future needs and if someone might need a little bit or alot more to ensure that they can move on from the relationship and not be left in a terrible financial state.
For example, if someone has a disability or medical needs and has a legitimate inability to work, then they may require some additional provision from the pie.
Or if one person will have primary care of young children and will have to therefore pay for the costs or raising children , some additional position may be given to the primary parent.
We then consider the individuals, and their future needs, and whether further allowances are appropriate to adjust the percentage of the property pool that each party is entitled to.
This makes sure that the children are adequately supported and provided for in the future.
Why These Steps Matter
Valuing the asset pool is just the beginning. By taking contributions and future needs into account, property settlements are designed to reflect not just what was put into the relationship, but also what each party will need to move forward after separation.
This approach allows the Court to create a division of assets that is fair, practical, and consistent with the best interests of all involved, especially those of the children’s.
👉 To learn more in depth about property settlements in family law, read our Property Family Law Brochure.
Moving Forward With Confidence
At Allwright Bourke Lawyers & Conveyancing, we guide clients through every stage of the property settlement process in NSW. From identifying the asset pool to assessing contributions and determining future needs, we ensure your rights are protected and your future is secure.
If you’re separating and need clarity around how your property may be divided, we’re here to provide practical, compassionate, and strategic advice tailored to your circumstances. Get expert legal support today by reaching out to us at admin@allwrightbourke.com.au or give us a call at 1300 225 297 (1300 ABL AWS).