Navigating a divorce is never easy.
Aside from the mental and emotional turmoil affecting the parties involved, it can also be particularly challenging when it comes to splitting property or assets.
When it’s about determining who gets the most assets from a separation, this is where a 70/30 divorce settlement comes in. Although uncommon in Brisbane, a 70/30 divorce settlement option does exist as needed, where one party gets 70% of the assets while the other has 30%.
If you’re currently involved in a divorce settlement, this article should help. In this blog, we cover what a 70/30 divorce settlement is, what factors are considered, and what steps are involved in this kind of agreement.
Key Highlights
- A 70/30 divorce settlement is an option in which one party receives 70% of the assets and the other 30%.
- Factors considered include financial and non-financial contributions, future needs, and childcare responsibilities.
- Other types of settlements include equal split (50/50), 60/40 split, and needs-based settlement.
- The process in a divorce settlement involves identifying the property pool, assessing contributions, considering future needs, and ensuring a fair outcome.
- Seeking legal advice from experienced family lawyers such as VM Family Law can ensure a fair and convenient divorce settlement process.
What is a 70/30 divorce settlement?
According to a recent survey, Queensland has the highest divorce rate, at 13,475 divorces, averaging 2.6 per 1,000 people.
Understanding how divorce settlements, also called separation agreements or divorce splits, works is essential for smooth divorce proceedings.
A 70/30 divorce settlement in Brisbane refers to a division of marital assets and liabilities between husband and wife, where one party gets 70% of the total property value and the other receives the remaining 30%.
These assets or properties are combined in what is known as a “property pool.” They can also include liabilities and any acquisition that took place before, during, or after the marriage. The 70/30 rule is based on a fair distribution of wealth and property, dependent on an individual’s socio-economic standing.
What factors are considered in a 70/30 divorce split?
How assets are divided in Brisbane in a divorce is based on the Family Law Act of 1975. This federal legislation requires the court to consider several factors to ensure a fair and equitable distribution of assets and liabilities.
Here are the common factors to be taken into account:
1) Financial Contributions
Each spouse’s financial contribution to the marriage is considered. This could include income earned from employment, investments, property and asset acquisitions, and any other finances that support the family or marriage.
2) Non-Financial Contributions
Contributions that are intangible but valuable for the marriage or family’s well-being are also taken into account. An example would be a wife taking on the household duties or being the primary caregiver for the children. Also, providing emotional support for the spouse’s career growth is another example of non-financial contribution.
3) Future Needs
The future needs of both parties are also considered. This would include looking into the stability of each spouse’s health, their earning capacity, and whatever is left for them to survive after a divorce. For instance, if one spouse requires ongoing medical care.
4) Childcare Responsibilities
This is a major factor in most divorce proceedings and considers the spouse who has the duty or primary custody of the children. Factors to be considered include a child’s essential needs, including education, healthcare, and extracurricular activities.
What are the other types of divorce settlement?
In spite of many rumours or online threads, a 70/30 divorce settlement is quite uncommon in Queensland and Australia. Courts typically aim for an equitable or balanced ratio of asset division based on each case’s specific circumstances.
But the 70/30 split does exist – and so do other types of settlement arrangements. Here are the commonly applied types:
- Equal Split (50/50): If both spouses have the same financial contributions, this is the arrangement that usually takes place. Their assets and liabilities are divided equally between them.
- 60/40 Split: A 60/40 settlement is similar to a 70/30, in which one spouse makes a significantly greater contribution than the other.
- Needs-Based Settlement: This type of settlement doesn’t have a fixed ratio compared to the 50/50, 70/30, or 60/40 split. The aim of this settlement is to meet the specific financial needs of the spouses, ensuring that they continue a similar standard of living after the separation.
- Property Settlement with Consent Orders: If you and your spouse want to avoid court, you can also opt for mediation with a family lawyer like VM Family Law. All the parties need to come to a mutual agreement and have it approved by the Family Court to make it legally binding.
If you’re going through a divorce and unsure of which type of settlement best fits your case, immediately seek legal advice. Contact the team at VM Family Law on 07 3447 8966 for peace of mind and a personalised solution to your divorce case.
What are the steps in a 70/30 divorce settlement in Brisbane?
Courts in Brisbane typically approach a divorce settlement with a “four-step” process, offering practical solutions and streamlined processes when reaching an agreement.
The 4 steps are as follows:
1) Determine the “Property Pool”
The first step that courts take is to identify and value all assets, liabilities, and other financial resources to determine a property settlement agreement for both parties. They would take into account all assets and debts acquired before, during, and after the separation and put all of these in one place called a “property pool.”
This property pool includes all of the couple’s assets and liabilities, including real estate, vehicles, stocks, cash, and household items, as well as house loans, debts from credit cards, car loans, and superannuation.
The valuation of this property often includes the value of the assets and liabilities during the date of hearing and is not based only on the date of separation.
2) Assessing Individual Contributions
The next step is for the court to determine each spouse’s individual contributions, which will include all the financial, non-financial, direct, and indirect contributions as we covered above.
3) Assessing Future Needs
During this step, the court will focus on what is called “future needs.” They will start to consider each party’s capability to support themselves post-divorce. Some factors they will weigh on include each spouse’s state of health, age, existing income, well-being of the children or child support, spousal maintenance, etc.
4) Ensuring a Just and Equitable Outcome
The final step is when the courts evaluate if the division is just and equitable to both spouses. They will ensure that the division of assets is fairly balanced according to contributions, future needs, and other relevant factors.
If you’re facing a divorce proceeding, cannot reach an agreement with your spouse on the settlement, and want to avoid court intervention, then it’s best to seek help from professional third parties or mediators for proper arbitration.
if you need it, VM Family Law offers personalised and cost-effective mediation services that keep divorce matters out of court and ensure a smooth divorce settlement process for both parties.
FAQs
What happens to business ownership in a divorce settlement in Brisbane?
It’s not easy when you own a family-run Brisbane company or business, and you’re involved in a divorce settlement. Since having a business is considered a financial contributing factor, Australian courts would also put it into the property pool and evaluate its value, property and the spouse’s role in the business. Of course, the courts will call on experts to weigh in on the accurate value of the business and will always aim for fair distribution and protect rights as necessary.
What do I need to do before the divorce settlement process begins?
Before the settlement procedure begins, it is best that you prepare all relevant financial documents that contain information on all of your assets and liabilities to save time. Also, get expert assistance from a law firm that has been in the industry for many years, such as VM Family Law.
When is a 70/30 agreement appropriate?
Although uncommon in Brisbane, a 70/30 settlement is ideal in cases where a former partner is making more significant contributions (financial and non-financial) to the relationship. It is also ideal when one spouse’s future needs are greater than the other spouse’s.
Are You Looking For Fair And Convenient Divorce Settlement with Experienced Brisbane Family Lawyers?
A divorce proceeding in Brisbane is a complex process that can significantly impact your life. If you’re going through a divorce settlement, the team at VM Family Law understands and can help.
Our Brisbane Family Lawyers will carefully assess your situation, ensuring that you receive not only a fair and equitable division of property and all relevant assets but also the best solution for you and your family in the entire divorce proceeding.
Contact VM Family Law on 07 3447 8966 or click here to schedule a free initial consultation. Remember that you don’t have to go through divorce settlement alone. The team at VM Family Law are here to help.
