When people think about a property settlement after separation, the family home is usually the first thing that comes to mind. But under Australian family law, the “property pool” is much broader than just real estate.
A property settlement can include superannuation, businesses, trusts, debts, investments, vehicles, and even some employment entitlements. Understanding what forms part of the property pool is an important first step in reaching a fair financial settlement after separation.
Superannuation is property too
Superannuation forms part of the property pool, even though it is not accessible like money in a bank account.
It is common for one party to have accumulated significantly more superannuation, particularly where the other (usually the wife) has spent time out of the workforce raising children or caring for family. In appropriate cases, superannuation can be split between parties as part of a property settlement, so it should never be overlooked.
Businesses and company interests
If either party owns or has an interest in a business, company or partnership, that interest may form part of the property pool. This can include business assets, goodwill, stock, equipment and other financial interests.
It is important to remember that company assets are legally owned by the company, not automatically by an individual shareholder or director. Identifying who controls the company, including its directors, shareholders and other decision-makers, is often an important part of the property settlement process.
Trusts may also be relevant
Family trusts are commonly used to hold investment properties, shares, businesses and other assets.
Even if a trust was not established by you personally, it may still be relevant if you or your former partner is a beneficiary, trustee, appointor or otherwise has control over the trust. Whether trust assets form part of the property pool depends on the circumstances and the level of control exercised over the trust.
Debts and liabilities count too
A property settlement is not just about dividing assets — liabilities are also considered.
This can include:
- Mortgages.
- Personal loans.
- Credit card debts.
- Tax liabilities.
- Business debts.
The Court generally considers the net property pool, which is the value of assets after liabilities have been taken into account.
Vehicles, valuables and collectibles
Cars, boats, caravans, jewellery, artwork, collectibles and other valuable personal items are all property.
While each item may seem relatively minor compared to the family home, together they can represent a significant part of the overall property pool.
Employment entitlements and insurance payments
Some employment-related entitlements may also be relevant, including:
- Long service leave.
- Annual leave.
- Redundancy payments.
Depending on the circumstances, certain insurance payouts or compensation payments may also be considered as part of the property settlement.
Overseas property and inheritances
Property located overseas does not automatically fall outside an Australian property settlement. Overseas real estate, bank accounts and investments may still need to be disclosed and considered.
Similarly, inheritances received before, during or after a relationship may be relevant. How an inheritance is treated depends on factors such as when it was received, how it was used during the relationship, and the parties’ overall financial circumstances.
Why identifying the full property pool matters
One of the most important obligations during a property settlement is full and frank financial disclosure. Both parties are generally required to disclose their financial circumstances honestly and completely.
Overlooking assets, liabilities or financial interests can result in an incomplete or unfair settlement. It is also important to remember that identifying the property pool is only one step in the process — it does not mean every asset is divided equally. Each settlement depends on the individual circumstances of the parties, including their financial and non-financial contributions and their future needs.
If you are separating and want to understand what forms part of your property pool, speak with one of our Rockhampton or Yeppoon Family Law lawyers for advice tailored to your circumstances.
This article provides general information only and does not constitute legal advice. Please contact South Geldard Lawyers for advice specific to your situation.
