/rachels-website-0025/Financial_Settlement-r4a99.jpg)
It is generally considered that a marriage/ Defacto Relationship 5 years or under to be a “short marriage/relationship”.
In short marriages the “rules” are a little different with regard to how the final division of property is calculated. The issue of financial contributions, be it initial financial contributions or financial contributions during the marriage, carries more weight and is more closely examined, especially where there are no children to the marriage.
Particular consideration is given to:
If an asset contributed at the commencement of the marriage increases significantly in value then a consideration must be given to whether this was simply market forces, or whether this is due to contributions such as renovations, investment or business decisions made during the relationship. If it is the former then a larger weight will be given to the person who initially contributed the asset to the relationship. If it is the latter then consideration will need to be given to both parties having contributed to the growth.
There is often a more precise correlation between the assets and liabilities a person brings into the relationship and the assets and liabilities a person takes out of a relationship the shorter that relationship is.
Whilst other non-financial contributions, such as home-maker, companion or general hands on contributions can still be relevant they do not tend to adjust the financial split significantly in a short relationship, especially when this is not a departure from the parties’ previous lifestyle. For example if two parties enter a relationship where one person has significant assets and significant earnings and the other is a home-maker and the parties continue in those roles, then only minor (if any) adjustments are made to the assets at the end of a short relationship.
Similarly consideration of a person’s future needs such as lack of earnings or employment opportunities, age or medical issues may still be relevant however there may not be any significant adjustment to the financial split in a short relationship. This is again especially so when this is not a departure from the parties’ previous lifestyle. For example where two parties enter a relationship and one person has significant assets and significant earnings and the other is unemployed with medical issues and the parties separate in the same condition, then also only minor (if any) adjustments are made to the assets at the end of the short relationship.
It is important to note however where there has been a significant change to a person’s circumstances during the marriage/relationship, it is more likely that would be an adjustment of the assets. For example where two parties enter a relationship and one person has significant assets and significant earnings and the other has modest earnings and both are healthy; where at the end of a 3 year relationship the person with modest earnings is on a disability pension with no likelihood of earning an income again. In that situation a more generous adjustment would be made to the assets in their favour even at the end of the short relationship.
There are no perfectly accurate calculators for Family Law financial settlements as each and every matter is unique. There are however general principles that can be followed and in short marriages, without children, it is more likely that calculations can be made based on the financial contributions of the parties and their resulting entitlements at the end of the marriage. The longer the marriage the less mathematical the calculations become.
If you have any questions relating to the above article or financial settlements in general, please do not hesitate to contact one of our experienced team members at Weatherly & Associates.
/rachels-website-0025/WeatherlyAssociates_Logo_OnDark-dc30f.png "Weatherly&Associates Logo OnDark"){kind=logo}