10 Minute Separation Split.

Part 3: Determining Future Needs

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Part 3: Determining Future Needs

We can all agree that there's a lot of uncertainty surrounding the future when going through a separation.  

You're probably worried about where you're going to be living and how you're going to support yourself and any children you have without your former partner in the picture.

These worries are completely normal, and we understand how these thoughts can make you feel anxious about your future.

Well, in this video, part 3 of how to determine your share of the property pool, I'm going to take you through some of the key things you need to consider when looking at yours and your former spouse's future needs. 

You can feel assured that this is exactly the same process we use for all of our clients, so let's get started.

Stage 1 - Care Of Children

What are future needs in relation to children?

Care of the children including the capital costs of the children not covered by periodic child support payments. 

The court recognizes that the payment of child support does not compensate the primary carer for:

  • the loss of career opportunity;
  • the lack of employment mobility; and
  • the restriction on an independent lifestyle.

As a result, this needs to be considered when determining how much of the property pool you get.

Stage 2 - Earning Capacity & Financial Resources

Family Lawyer talking to client

What are future needs in relation to earning capacity & financial resources?

There may be a great difference in earning capacity between you and your former spouse. If you're the lower income earner, you may be entitled to an adjustment of property in your favor for that reason. 

The rationale behind this is that usually there may be a difference in earning capacity because of the relationship and the roles each party chose to play in that relationship. 

This is particularly common in long relationships. 

The court will also look at any financial resources you or your former spouse may have such as an entitlement to an inheritance or an interest in a family trust, anything that may result in either party receiving some amount of money.

Stage 3 - Health

What are future needs in relation to health?

The court will look at the age, state and health of each party.  

If you suffer from a health condition that impacts your ability to work or earn a living, this is a relevant factor.

You may have a health condition that requires extensive care and attention, and this will also be relevant. 

If you're nearing retirement age, and you're the primary income earner, the court will also look at this and consider that as relevant.

Stage 4 - Standard Of Living

What are future needs in relation to yours and your spouse's standard of living?

The court will look at what the standard of living was during the relationship. For example, whether the parties lived a substantial lifestyle and whether one party is still enjoying that lifestyle and the other is not.  

If one person is still enjoying a substantial lifestyle while the other is struggling to get bills paid, the court may adjust the share each person receives. This is so that there isn't a huge difference in financial quality of life.

Those are some of the main things you need to consider when determining what your future needs are and how this impacts what you might be entitled to in a property settlement.

If you have any trouble or have any questions regarding this video, or your separation, feel free to contact us on 1300 767 384 or you can email us at [email protected]

Otherwise, you can move on to the final video, Part 4: Calculating Your Share of the Property Pool.

Don't have the time to do it yourself?

Let us work out what you may be entitled to instead.