What factors do Perth courts consider when dividing property?

Dividing property after a relationship breakdown can be one of the most emotional and complex aspects of separation. Whether you were married or in a de facto relationship, understanding how Perth courts approach property division is essential. The Family Court of Western Australia follows specific principles to ensure a fair and equitable outcome for both parties.

If you are going through a separation or divorce, speaking with an experienced property division lawyer in Perth can help you understand your rights and ensure your interests are protected.

Understanding Property Division in Perth

When couples separate, the assets and liabilities they share must be divided between them. This process, known as property settlement, aims to achieve fairness based on each person’s contribution and future needs.

Property includes more than just the family home. Courts consider a wide range of financial and non-financial contributions when deciding how assets and debts should be split.

Common examples of assets and liabilities include:

• Real estate, such as the family home or investment properties

• Cars, jewellery, and personal belongings

• Superannuation balances

• Business interests or shares

• Savings, bank accounts, and investments

• Mortgages, loans, and credit card debts

No two cases are the same. The court takes a broad view of each couple’s financial situation before determining how property should be divided.

Legal Framework for Property Division

In Perth, property division is governed by the Family Law Act 1975 (Cth) for married couples and the Family Court Act 1997 (WA) for de facto relationships.

Before deciding how to divide property, the court must be satisfied that it is just and equitable to make an order. This means the division must be fair to both parties, not necessarily equal.

Key Factors Perth Courts Consider When Dividing Property

The Family Court of Western Australia follows a structured four-step process to determine property division. Each step ensures that the outcome reflects fairness based on the couple’s unique circumstances.

1. Identifying and Valuing All Assets and Liabilities

The first step is to create a complete list of all assets, liabilities, and financial resources owned by both parties. This includes both jointly and individually owned items.

Each asset is then given a fair market value. If there is disagreement about an item’s worth, professional valuers may be used to provide an independent assessment.

Accurate disclosure of financial information is crucial. Failure to disclose assets can result in serious consequences or court penalties.

2. Considering Each Party’s Contributions

Next, the court assesses what each person contributed to the relationship. These contributions are not limited to income or financial investments.

The court considers:

• Financial contributions – such as wages, savings, and property brought into the relationship.

• Non-financial contributions – for example, home renovations, managing finances, or supporting a partner’s business.

• Homemaker and parental contributions – time spent caring for children and maintaining the household is equally recognised.

This ensures that both partners, regardless of who earned more money, receive fair recognition for their roles in the relationship.

3. Evaluating Future Needs

The third step considers what each person may need moving forward. The court looks at various personal and financial factors, such as:

• Age and health

• Earning capacity and employment prospects

• Responsibility for caring for children

• Standard of living during the relationship

For instance, if one partner left the workforce to care for children, the court may grant them a larger share of the assets to support their future needs.

4. Ensuring a Just and Equitable Outcome

Finally, after considering contributions and future needs, the court reviews the proposed division to ensure it is just and equitable.

This final assessment is based on fairness rather than strict equality. The goal is to reach a settlement that fairly reflects what each person has given and what they need for the future.

For example, even if both partners contributed equally during the relationship, one may receive a higher percentage of assets if they have greater ongoing financial responsibilities.

The Role of a Property Division Lawyer in Perth

Navigating property division can be complicated without legal guidance. A property division lawyer in Perth can:

• Help identify and value all assets and debts

• Advise on likely court outcomes

• Negotiate a fair property settlement agreement

• Represent you in court if an agreement cannot be reached

Working with experienced property settlement lawyers Perth ensures that your case is presented clearly and supported by evidence, increasing your chances of a fair result.

Reaching an Agreement Outside of Court

Many couples prefer to resolve property division issues through negotiation or mediation rather than going to court.

You can formalise an agreement in two main ways:

1. Consent Orders – A legally binding court order reflecting your agreed settlement.

2. Binding Financial Agreement (BFA) – A private contract that sets out how property will be divided.

These methods are often faster, less stressful, and more cost-effective than litigation.

Common Misconceptions About Property Division

• My name is on the title, so I own it – Not necessarily. The court looks at contributions and fairness, not just ownership.

• Everything is split 50/50 – The division is based on individual circumstances, not a fixed percentage.

• Superannuation isn’t included – Superannuation is treated as property and can be split between parties.

• De facto couples have no rights – De facto partners in Western Australia have similar rights to married couples under family law.

Understanding these facts helps avoid confusion and supports informed decision-making.

Final Thoughts

Property division after a separation is rarely straightforward. Courts in Perth aim for fairness by carefully assessing each partner’s contributions and needs.

Getting professional advice from an experienced property division lawyer in Perth can make the process smoother and less stressful. With the right legal support, you can protect your interests and achieve a fair settlement that allows you to move forward confidently.

If you need assistance, the team at Property Settlement Lawyers Perth can guide you through every stage of your property division process, helping you understand your options and achieve a balanced outcome.