VIC Property Settlement Questions for Short De Facto Relationship

[SJM1986]

Hi everyone,

I was wondering if I could get some help regarding some general de facto property settlement questions pertaining to a case of a short de facto relationship (4.5 years co-habitation) with no children involved.

1. When assessing financial contributions to the relationship, are contributions calculated on gross or net income? If net, is HECS/HELP repayments not included as a contribution? Obviously a gross earnings formula would favour the higher income earner and vice versa.

2. Can the ex-partner assert that she is entitled to 50% of the available, non-quarantined, asset pool based on claiming that she was the homemaker? In this case the ex-partner earned approximately 36% of the gross income due to a lower salary and 4 periods of unemployment where she was supported by her ex-partner.

Again, no children are involved and the relationship was short. The home was a two bedroom apartment so no yard etc that required maintenance. It would be one word against the other as domestic duties were shared 50/50 throughout the relationship. I have read that in short relationships, non-financial contributions take on less significance and more emphasis is given to direct financial contributions.

3. In a short relationship, what role does superannuation play in assessing and dividing the available asset pool, where superannuation accounts were kept separate, with no contribution by one party to the other's super? Is superannuation included at all? I would imagine that pre co-habitation balances are quarantined and the rest would form part of the asset pool? Does increases in initial superannuation balances also get quarantined or is it counted as a financial contribution by that party?

I realise there's a few questions incorporated within each but would appreciate some general info around this.

Regards,

 

[sammy01]

4 1/2 yrs is a short relationship. She can claim half of your assets, but no court would give it to her... At 4 1/2 yrs each party should take out what they put in.

If she has left the residence, good, change the locks. Then she can seek a financial settlement through court, not much chance...

 

[SJM1986]

4 1/2 yrs short relationship. she can claim half of your assets. But not court would give it to her... At 4 1/2 yrs each party should take out what they put in.

If she has left the residence, good, change the locks. Then she can seek a financial settlement through court, not much chance...

My lawyer doesn't particularly agree with this view unfortunately, she has a claim against me, and we are in the process of determining what the end payout amount would be.

A small property pool, so both parties will be keen to avoid court.

I am particularly interested in understanding whether financial contributions are based on net or gross income ( as a percentage this looks a lot more favourable as pre-tax income) considering my significantly higher earnings, and also understanding what role superannuation would play.

 

[sammy01]

I reckon a second opinion is warranted. What sort of $$$ are you guys talking about?

 

[nat 2015]

i have been told by my ex he will give me $1 in 5c coins

 

[SJM1986]

A total property pool (depending on what the certified property valuation comes in at) of maybe $230k with maybe $85k comprising of super.

Of that, about $30k plus a further $20k in super should be quarantined to me as I brought it into the relation which lasted less than 5 years.

It has already cost $$$$ but the problem isn't going away. We're not fighting over much really, but will need to settle on something.

I've asked the initial questions in the OP to try get a vague idea of what I might be up for.

Initially my lawyer said it will probably land at a payout of about $43k to her, on top of all of the assets that she is in possession of e.g. Her car, jewellery, superannuation, all of the household contents. But I'm hoping I can reduce that in a number of ways.

 

[SJM1986]

i have been told by my ex he will give me $1 in 5c coins

I wish I could get away with such a thing. It would actually be more than she deserves.

 

[sammy01]

Crazy idea... Offer $10 000 cash and she keeps all her stuff. So work out what that would total... and provide the number too. Get solicitor to write to and say no more discussion will be entered into and if the ex has an issue, she can apply to court.

 

[SJM1986]

Crazy idea... Offer $10 000 cash. and she keeps all her stuff. So work out what that would total... and provide the number too. Get solicitor to write to and say no more discussion will be entered into and if the ex has an issue, she can apply to court.

She won't accept that. Based on a valuation of $370k she is demanding $60k on top of all the possessions she has taken off with.

She believes she is entitled to 50% of the equity in my house, minus my initial contribution. Despite the fact that she only earned 34% of our gross household income during our short relationship.

I'm waiting on the real estate valuation to come in, fingers crossed it is really low because I have no interest in selling, only paying her whatever I have to and keeping the place.

I did cover most of this in another thread a month or two ago. Now I'm just hoping to clarify the 3 questions asked in my OP.

 

[sammy01]

OK, so she won't accept $10 000.

Firstly, I'd get a second opionon.

She can believe what she wants. This stuff is a game of strategy.... Offer her something realistic... Now after 4 1/2 years, I reckon it is a short relationship and as suchshe isn't entitled to much at all... So like I said, she can believe what she wants... Let her take up the Pepsi challenge of taking it to court... She has 2yrs after separation to make a claim through court. So offering something low and saying get stuffed, no more negotiating is a good strategy. She might come back with something that is more reasonable, she might not. But I still think it is a good strategy.

So is seeing another solicitor.

So to answer questions... Hecs debt could be deemed as a debt in one person's name, but in family law, it could be a shared debt. Income only kinda matters, assets matter more than annual income.

Next "2. Can the ex-partner assert that she is entitled to 50% of the available, non-quarantined, asset pool based on claiming that she was the homemaker?" she can assert it but you can refute it. Especially if no kids involved...

Next

"In a short relationship, what role does superannuation play" Yup, super is included...but there are lots of variables. So in my case we negotiated she get a smaller piece of pie because she was getting the tangible assets but I was going to have to wait till I'm 65 to get my hands on assets. The fact that I had a good super pile of money before we met was also reason for some of it to be quarantined.

But, my 7-year marriage with 3 kids still saw negotiations go her way in one important aspect as far as you're concerned. She came into the relationship with about $150 000 from an inheritance... Even after 7 years her initial financial contribution was still considered a factor and a reason for her getting more of the pie... So for that reason I reckon your 4 1/2 relationship should be all the more factored into.

Look I'm gonna be blunt - the % of asset split in cases without kids etc etc - Basically cases like you'rs are dependent on the size of the balls of the solicitors... Now it would appear to me that your ex's expectations are way too high....

Oops one more thing - Future needs... Your age matters here... If she is 60 and earns substantially less that you, then future needs could hurt... If you're in your 30's then this is less an issue.