This blog will explain how non-finanical contributions are dealt with by the Courts when a relationship ends. If you live in north Brisbane or surrounds and are in search of lawyers that practice fmaily law and can assist with property divisions read on to find out more and contact Terry Anderssen.
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How does the Court deal with non-financial contributions?
To determine how property is dealt with at the end of a relationship the law will look at the contributions of the parties, taking into account assets and liabilities that have been acquired by financial and non-financial contributions.
What are non-financial contributions?
Non- financial contributions are also described as indirect contributions and can consist of work done or emotional support. Such actions can include maintenance and improvement of an asset that cannot be easily quantified in money terms.
Support and assistance by one party to the other party who is directly contributing by earning money to pay off the mortgage on a property being acquired can include conservation work to the property which may directly conserve or increase its value although the work carried out by one of the parties cannot be quantified at commercial rates.
The relevant legislation is s79(4)(b) and s79SM(4)(6) which deal with direct and indirect contributions by or on behalf of a party to the marriage or a de facto relationship.
What about parenting or home-making, does the Court consider these to be a contribution?
The answer is yes! Contributions of this nature are referred to as welfare contributions and include cleaning, cooking, raising the children and generally looking after the home.
The basis for recognising contribution to the welfare of the family and generally indirect contributions was that the wife in a traditional role should have her contributions treated as a relevant effort towards the acquisition, conservation or improvement of the property (Mallet v Mallet 1984 FLC)
The Court views that the contributions of home-making or parenting has enabled the other party to be able to go to work in order to earn money to make the direct contributions and free up the money-earner to pursue without interruption his or her business activities. See Ferraro & Ferraro (1993) FLC 92-355.
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