When marriages end, dividing property and assets is often one of the most challenging aspects of a divorce.
In Australia, the Family Law Act 1975 outlines how property settlements should be conducted, with the aim of achieving fairness.
A 70/30 divorce settlement refers to a division of assets where one party receives 70% of the property pool, and the other receives 30%.
While this type of split may sound unfair at first, it is not uncommon in cases where specific circumstances justify the unequal division.
We will break down what a 70/30 divorce settlement means, how courts determine such outcomes, and what factors play a role.
We’ll also explore whether such settlements are fair and if they can be challenged or changed.
What Does a 70/30 Divorce Settlement Mean in Australian Family Law?
A 70/30 divorce settlement refers to how the court decides to divide the total property pool between separating spouses.
The “70/30” represents percentages: one person receives 70% of the combined assets, while the other receives 30%.
Australian family law does not automatically divide property 50/50 after a divorce. Instead, the court assesses what is fair and reasonable based on each party’s unique situation.
A 70/30 split typically arises in cases where one party has significantly greater needs or contributions than the other, such as being the primary caregiver for children or earning a much lower income during the relationship.
While this may seem unfair to the person receiving less, the court’s decision is guided by principles of equity, focusing on future needs and past contributions.
How Does the Court Determine a 70/30 Property Split?
The court follows a four-step process to decide how property and assets should be divided in a divorce.
This method ensures that the decision is fair, considering both the financial and non-financial contributions of each party.
Step 1: Identifying the Property Pool
The first step is to calculate the total value of the assets, liabilities, and financial resources of both parties. This includes properties, savings, superannuation, investments, debts, and even personal belongings.
Step 2: Assessing Contributions
The court then evaluates how much each party contributed to the marriage or relationship. Contributions are categorised into:
- Financial contributions: Income earned, savings, and payments made towards mortgages or household expenses.
- Non-financial contributions: Caring for children, maintaining the home, and unpaid domestic labour.
Step 3: Considering Future Needs
Next, the court assesses the future needs of each person. Factors like age, health, earning capacity, and responsibility for children are considered.
A person with higher care responsibilities or limited earning potential is likely to receive a larger share.
Step 4: Ensuring a Just and Equitable Outcome
Finally, the court ensures that the overall division is fair. A 70/30 split will only be ordered if it aligns with the principles of justice and fairness.
What Factors Lead to a 70/30 Division of Assets in Divorce Cases?
The court considers a wide range of factors when determining whether a 70/30 split is appropriate. These include:
1. Unequal Financial Contributions
If one party contributed significantly more financially during the relationship, they might argue for a larger share of the property pool.
2. Non-Financial Contributions
On the other hand, a person who was the primary carer for children or maintained the household may receive a larger share, as their efforts supported the family in non-monetary ways.
3. Care for Children
If one party will continue to be the primary caregiver for the children, the court may allocate them a larger portion of the assets to ensure the children’s needs are met.
4. Future Earning Capacity
A person with limited earning potential—due to age, disability, or time spent out of the workforce—may require a larger share to support themselves in the future.
5. Financial Disparity
If there is a significant difference in income or assets between the parties, the court may order an unequal split to address this imbalance.
Can I Challenge or Change a 70/30 Divorce Settlement?
Yes, it is possible to challenge or change a 70/30 divorce settlement, but this is not an easy process. Once a property settlement is finalised by the court, it is legally binding. However, there are certain circumstances where a settlement may be reviewed:
New Evidence or Circumstances
If new information comes to light—such as undisclosed assets or fraud—the court may agree to reassess the settlement.
Significant Changes in Circumstances
If one party experiences a dramatic change in their situation, such as a severe illness or loss of income, they may apply to have the settlement adjusted.
Application for Appeal
If a party believes the decision was unfair or based on an error in law, they may appeal the decision to a higher court. However, this process can be time-consuming and costly.
Is a 70/30 Split Always Fair in Australian Divorce Proceedings?
Fairness is a subjective concept, and not everyone will agree on what is “fair.” However, the court aims to create an outcome that is just and equitable for both parties. A 70/30 split may be considered fair if:
- One party contributed significantly more during the relationship.
- One party has greater future financial needs.
- There is a need to provide stability for children.
On the other hand, if someone feels the settlement is unfair, they have the right to present their case and explain why the division should be adjusted.
Fairness in divorce settlements is not about dividing everything equally but rather ensuring that both parties leave the relationship with a share of the assets that reflects their contributions and future needs.
Find the Right Legal Support with Ipswich Family Lawyers
Understanding the complexities of property settlements, particularly in cases involving a 70/30 split, requires expert guidance.
Working with an experienced family lawyer can help ensure your rights are protected and the settlement reflects your unique situation.
Dividing assets during a divorce can be stressful, but you don’t have to go through it alone. At Ipswich Family Lawyers, our team is dedicated to achieving fair and just outcomes tailored to your circumstances.
Contact us today to discuss your case and take the first step towards clarity and resolution.