How Does 60/40 Split Divorce Work in Australia?
Divorce is never easy, but understanding how property is divided can help make the process a little smoother—or at least less like a scene from a courtroom drama. In Australia, property settlements often lead to arrangements like a 60/40 split. But how does this work? Read on to learn everything you need to know, with a sprinkle of humour to keep it light (because, let’s face it, you could probably use it).
Key Takeaways
● No cookie-cutter solutions: A 60/40 split isn’t a rule; it results from specific factors in each case.
● Fairness is key: The court prioritises a “just and equitable” division of assets.
● Contributions matter: Both financial and non-financial contributions are considered.
● Children’s needs are crucial: The welfare of children significantly impacts property splits.
● Expert help is essential: Legal advice can ensure the best possible outcome.
What Is a 60/40 Split in Divorce?
In Australia, property settlements aim to divide assets fairly, not equally. A 60/40 split means one party receives 60% of the marital assets while the other receives 40%. This split isn’t a predetermined formula but rather an outcome based on the unique circumstances of each case.
The Family Law Act 1975 governs these decisions, ensuring the division is “just and equitable.” What does that mean? Essentially, it’s about fairness, not necessarily sameness.
Factors That Influence a 60/40 Split
The court considers several factors when determining how assets are divided. Think of it as a complex recipe requiring the right mix of ingredients to achieve fairness.
1. Financial Contributions
Who brought what to the table? This includes income, savings, investments, and property owned before the relationship.
2. Non-Financial Contributions
Did one party take on the lion’s share of homemaking or child-rearing? These efforts are valued just as highly as financial inputs.
3. Future Needs
Age, health, and earning capacity all come into play. For example, a stay-at-home parent with limited job prospects might receive more assets.
4. Children’s Welfare
If children are involved, their needs will be a top priority. The parent with primary custody may require more assets to ensure the children’s well-being.
Listicle: Common Misconceptions About 60/40 Splits
Let’s bust some myths that might have you scratching your head:
Myth: The split always favours one gender.
Reality: The court evaluates the specific circumstances, not stereotypes.
Myth: Assets are divided equally in every case.
Reality: “Equal” doesn’t always mean “fair.”
Myth: You need to go to court to finalise a property settlement.
Reality: Many settlements are resolved through negotiation or mediation.
Myth: Superannuation isn’t included in the split.
Reality: Superannuation is treated as property and considered in the division.
Myth: Once the split is decided, it’s set in stone.
Reality: Agreements can be revisited if circumstances change significantly.
"Fair doesn’t mean equal, and equal doesn’t mean fair. It’s about what makes sense for you, your ex, and any children involved."
How to Achieve a 60/40 Split
1. Negotiation and Mediation
Most property settlements are resolved without stepping into a courtroom. Negotiation and mediation can help you reach an agreement that works for both parties. A professional mediator can guide discussions and help resolve disputes amicably.
2. Legal Intervention
If negotiation fails, the court will step in. You’ll need to present evidence of contributions, current needs, and other relevant factors. This process can be time-consuming and costly, but it ensures a legally binding outcome.
Real-World Example: A 60/40 Split in Action
Imagine this scenario:
● Spouse A is a high-income earner with substantial superannuation.
● Spouse B has been the primary caregiver for two young children.
The court might award a 60/40 split favouring Spouse B, recognising their non-financial contributions and the need to support the children’s welfare.
This example highlights the nuanced approach taken by the Australian family law system—it’s all about tailoring the settlement to the family's unique needs.
Conclusion
Understanding the ins and outs of a 60/40 split in divorce can help you feel more confident and informed during what’s often stressful. Remember, fairness is the guiding principle, and factors like contributions, future needs, and children’s welfare play a significant role.
If you’re navigating a property settlement, don’t go it alone. Advance Family Law is here to provide expert guidance and ensure you achieve a fair outcome. Reach out today to start the next chapter of your life with clarity and confidence.
