What is a 70/30 Divorce Settlement?
A 70/30 divorce settlement Australia refers to the division of assets where one party receives 70% and the other gets 30% of the total asset pool.
Contrary to the popular belief that assets are always split 50/50, the Family Court in Australia aims for a fair, just, and equitable distribution.
The court considers both financial and non-financial contributions from both parties, such as income, property, childcare, and household maintenance.
How Common Is a 70/30 Divorce Settlement Australia?
While a 70/30 split is relatively uncommon, it can occur under specific circumstances.
For example, if one party has significantly more assets or a much stronger financial position than the other, a 70/30 split might be considered fair.
However, the court also takes into account future needs like childcare, earning capacity, and age, among other factors.
What Is the Average Split in a Divorce Settlement in Australia?
On average, most divorce settlements in Australia result in one party receiving between 50-65% of the total asset pool.
A 70/30 split is less common but can occur if one party comes into the relationship with significantly more assets.
How to Identify the Property Pool
Identifying the property pool is the first step in any divorce settlement.
This includes all assets, liabilities, and financial resources that either party has.
Being transparent and honest during this stage is crucial, as hiding assets can lead to legal repercussions.
Both parties usually come up with their list of assets, which can then be cross-referenced for accuracy.
Is a 70/30 Split Just and Equitable?
The court’s primary concern is to ensure that the asset division is fair, just, and equitable.
A 70/30 split could be approved if it meets these criteria, but it’s uncommon because it could severely disadvantage one party.
How Can I Protect My Assets From Divorce?
To protect your assets, you can use legal tools like Binding Financial Agreements (also known as prenuptial agreements).
These agreements can be made before or during the marriage and can specify how assets will be divided in the event of a divorce.
How We Can Help
When Mark, a successful restaurant owner, consulted our law firm, he advised us that his 14-year marriage had ended. Separated from his wife, he contemplated a 70/30 divorce settlement in her favor.
Our first step was to sit down with Mark for an in-depth consultation. We gathered all the necessary details about his marriage, including the duration, assets involved, and the roles each spouse played. This initial information helped us gauge the intricacies of Mark’s situation.
We educated Mark on what a 70/30 divorce settlement entails and how it’s viewed under Australian law.
We explained that while he might see himself as the primary financial contributor, the court would also consider non-financial contributions like homemaking and childcare.
Before diving into percentages, we assisted Mark in identifying the property pool. This included not just the restaurant but also other assets and liabilities. We emphasised the importance of full financial disclosure to ensure a fair settlement.
Because Mark’s wife had sole care of 3 children, was not working, did not have much potential to earn a high income, and Mark was making a very high income because of the progress he had made in his career, we advised that a 70/30 split may be likely in his situation.
Document Preparation: We began by drafting the necessary legal documents, including a detailed list of assets and liabilities.
Negotiation: We initiated a negotiation process with his wife’s legal team to discuss the proposed 70/30 split and other possible arrangements. The wife didn’t agree and wanted an 80/20 split.
Court Submission: After exhausting all negotiation avenues, we prepared and applied for property settlement to the Family Court of Australia.
Court Representation: We represented Mark during the court hearings, ensuring that his case for a 70/30 split was strongly presented.
Final Settlement: Once the court decided, we assisted Mark in finalising the division of assets, ensuring that all legal obligations were met.
Consult With Experienced Family Lawyers
Navigating a divorce settlement can be complex, especially regarding asset division.
While a 70/30 split is uncommon, it’s not impossible under Australian law.
However, consulting with experienced family lawyers is crucial to ensure the settlement is fair and equitable for both parties.
Director of Melbourne Family Lawyers, Hayder manages the practice and oversees the running of all of the files in the practice. Hayder has an astute eye for case strategy and running particularly complex matters in the family law system.