Identifying The Assets, Liabilities and Financial Resources of The Parties
The first step in the process is to identify the assets and liabilities of the parties and values. This includes all assets, liabilities and financial resources, whether it is in individual names, joint names or business names. In the majority of cases this is a simple part of the process. However, if there are businesses or assets that are difficult to value then it can become more complex.
Assessment of The Contributions
Secondly, the contributions made by the parties are assessed. These include:-
Contributions during the relationship; and
The contributions made can be direct and indirect financial contributions, direct and indirect non-financial contributions and contributions to the welfare of the family including contributions in the capacity of homemaker or parent.
Assessing the future needs of each of the parties
The third step involves the Court assessing the future needs of each of the parties.
Factors like the parties age and health, income, property, financial resources and who has the care of any children are taken into account.
After the Court assesses these factors it will then consider if there ought to be an adjustment or uplift in favour of one of the parties to compensate for any difference in their future needs.
Is the proposed division of property fair?
After assessing steps 1- 3, the Court must then decide whether the proposed division of assets is fair to each of the parties.