How a Post Separation Contribution is Treated in Property Settlement

Under the Family Law and settled Jurisprudence in Australia, all assets, properties and contribution of each spouse will form part of the matrimonial asset pool during the subsistence of their marriage up to the date of their separation.

Stated otherwise, if a spouse acquires an asset, property or any other thing, even without the help and financial contribution of the other spouse, the said asset, property or thing is still deemed included in the Conjugal Property or Matrimonial Asset Pool.

In line with this, there are instances when a post-separation acquisition of asset is considered to be a Post-Separation Contribution. It can be made through direct contribution, indirect contribution, or to the welfare and care of the child through a Child Support Program in some cases.

Direct contribution can be made either through a financial assistance or contribution like a monthly allowance or a lump sum contribution. Indirect contribution can be made through a contribution that will affect and improve the lives of the family, like renovating the family home that will result to an increase in its value. Care of the child is also important since it is the degree of care and support given by a parent to their common child. In some cases, it is taken as a factor in determining the amount of post-separation contribution made by a spouse.

There may be some delay during the actual separation of the spouses and the date of the formality of their property settlement. It may be due to the documentation, accounting and other process involved in the separation of the spouse and their property settlement. During this time, it is advisable to make a full and frank disclosure of all the assets of a party including any property in which he may have interest in and to update and revise the list and value of the assets until the time the property of the spouses are settled formally.

This will serve as a basis for the court in their assessment of the contribution that each spouse has made to the asset. If there are any disputes with the claims of each spouse, this will provide a good basis and evidence on what they can present as their post-separation contribution.