Published in the Coffs Coast Advocate on 21 February 2015
Jim and Joy have been married for 25 years. They own their home in Coffs Harbour jointly. Their home is no longer mortgaged and is worth $700,000. They have $300,000 in a joint bank account and no other assets of any significant value.
Jim migrated from Europe many years ago and now that he is over 65, he receives an overseas pension in addition to a part Australian Age Pension.
Joy is not yet entitled to the Age Pension. She performs some casual work and her income is topped-up by the Newstart Allowance.
Jim and Jane have three children who have left home.
Unfortunately, their relationship has now broken down and Jim wishes to return to Europe permanently. Joy wishes to remain in Australia with her friends and family.
Joy seeks legal advice.
Joy is informed that she can file an Application for a Divorce after they have been separated for more than 12 months. She is informed that when the divorce is granted, the marriage will come to an end. She is also informed that the division of their property will need to be formalised separately and that this can be done by way of a Binding Financial Agreement or by Orders of the Court. If the parties can reach agreement between themselves, Consent Orders can be filed in the Local Court at relatively low cost.
Firstly, Joy’s solicitor identifies the assets of the relationship.
Secondly, her solicitor considers the parties “contributions” and is informed that Jim worked full-time for most of the relationship and that Joy took on the role of home-maker.
Thirdly, the solicitor examines the parties’ future needs. Jim and Joy are both in reasonable health but Jim receives two pensions and Joy will need to continue to work for several more years.
Finally, the solicitor advises Joy that an adjustment in her favour would be likely if the matter were to be determined by the court and after Jim seeks his own legal advice, the parties agree to a 45/55 split of the whole of their assets in Joy’s favour.
