WHAT’S UP FOR GRABS IN A PROPERTY SETTLEMENT?

What items are included and available for distribution between parties after the breakdown of a relationship seems like an easy question, however sometimes it can be rather complex.

Lawyers refer to the items available for distribution between parties as the "property pool".

Assets owned by you and your partner, either jointly or individually such as houses, vehicles, and funds in bank accounts are easy to identify as forming part of the property pool.

The family business can also be included in the property pool, if the business is owned by the parties or one of the parties.

A party’s interest as a Trustee or Director in property, including houses, shares or cash owned by a

trust or corporate entity can be included in the property pool.

An inheritance received during the relationship will also form part of the property pool potentially available for distribution.

Debts are also typically included in the property pool, unless for example a party has deliberately incurred the debts to minimise the property pool.

Financial resources, which are assets that a party has an interest in, but cannot access just yet, are also included in the property pool.

For example, superannuation is a financial resource as generally it cannot be accessed until a party reaches preservation age.

Superannuation can be split, where your former partner can receive a proportion of your superannuation interest, which then remains as superannuation accessible typically when your ex-partner reaches preservation age.

Compensation payments and inheritances that have been quantified and due for distribution in the not-too-distant future are also financial resources that can be included in the property pool.

Sometimes parties go on a spending spree after separation to deliberately minimise the property pool.

Depending on the funds spent and the reason for the expenditure, the value of the spent funds can be added back into the property pool.

It is important to obtain legal advice early to ensure the property pool can be properly identified and, if need be, protected.