Understanding a 70/30 Divorce Settlement in Australia: When and Why It Happens

In some cases, when one marital relationship stops, it does not guarantee a fresh cut of 50/50. You may have heard about a 70/30 divorce settlement and thought Why does it occur? Whether you are experiencing a break-up or are now anticipating one, such an outcome is the kind that can be daunting. This is the reason why obtaining advice from experts like separation lawyers Perth, who have knowledge in both the legal and emotional intricacies, becomes a priority.

Let’s break it down clearly: What is it, when does it happen, and how does a 70/30 split happen in the context of Australian family law?

When and Why Does a 70/30 Split Occur?

A 70/30 split of assets doesn’t automatically occur; it does occur when a spouse’s future needs and contribution are much higher than the other’s. The Family Court of Australia isn’t concerned with splitting assets equally; it’s concerned with splitting them fairly, depending on the nature of each relationship.

Here are some of the most common scenarios where a 70/30 divorce split is considered appropriate:

1. There’s a Big Gap in Future Earning Potential

The court will examine each individual’s capacity to rebuild financially after divorce. If a party has a professional career of stable or high incomes, and the other will not be able to secure well-paying jobs because of age, poor health, or poor skills, this disparity in earnings will point towards a 70/30 settlement.

For instance, a 50-year-old partner who has not worked for the last 20 years might have few superannuation and employment prospects, while the other keeps on earning a good income. Here, the financially at-risk partner gets more to equalise future needs.

2. One Party Made Exceptional Contributions

While both financial and non-monetary contributions are taken into account, in some cases, one side has contributed significant assets, such as a house, inheritance, or business, particularly in the early stages of the relationship. If this contribution greatly added to the couple’s financial net worth and was maintained during the marriage, the divorce lawyers Perth WA could appeal to the court, which may account for a higher percentage at settlement.
With that, initial contributions deteriorate with time, particularly in lengthy relationships. But where the size of the asset pool is huge and the imbalance is major, a split like 70/30 may still hold.

3. One Party Has a Serious Health Condition

Health also plays a vital role in property settlements. If a party has persistent or chronic medical conditions, their earning capacity, independence, or financial ability to sustain themselves could be restricted.
Here, the court tends to adjust the divisions so that the individual has access to medical provisions, housing, and essentials, which might lead to a 70/30 case.

4. The Relationship Was Long-Term with Unequal Superannuation

In longer marriages or de facto relationships, where one person worked full-time and built up substantial superannuation, and the other remained at home or worked part-time, there’s often a super gap. Because superannuation is included in the property pool, the lower-balanced party might be awarded more of the other assets (such as property or money) to compensate.

This is more likely when retirement is nearer, as super is a must for the future. A 70/30 division makes it certain that both partners have a secure future after being apart.

5. Financial Misbehaviour by One Party

While uncommon, if either party has recklessly wasted or concealed assets, like gambling, drug abuse, or hiding money to prevent equitable distribution, the court can punish that action. This could shift the property settlement in the other party’s favour.

For example, if one of the couples spent nearly all of their savings secretly without mutual consent by both partners, the best divorce lawyers Perth can be consulted, and you can be awarded a greater proportion (e.g., 70%) in a bid to protect their financial interests.

Real-Life Example (Hypothetical)

Consider the example of Anna and Mark, who were together for 22 years. Anna stayed at home to bring up their three children and worked only on a casual basis. Mark established a thriving construction business and had a huge superannuation. Anna had no savings, minimal super, and was still looking after their youngest child, who is disabled, at the time of separation.

Both contributing to the relationship, the court concluded Anna’s future needs were by far greater than Mark’s, and her unpaid domestic contributions were long-term and substantial. Consequently, she was awarded 70% of the asset pool, including the family home and a portion of Mark’s super.

Moving Forward with Confidence

A 70/30 divorce division may seem much, yet it usually benefits a spouse who needs financial support once the divorce takes place. You will deal with this process confidently with the assistance of a caring and experienced family lawyer. No matter where you are, in Perth or anywhere else in Australia, with some help from divorce property settlement perth, you will be able to achieve a fair outcome.

When you are ready to proceed with your decision, please call these experts to meet and discuss your case. Being informed about your rights and options is the way to a brighter future.

Conclusion

A 70/30 divorce settlement in Australia is not the norm, but it is entirely possible and legally justified in certain situations. The Family Court does not divide assets strictly down the middle; instead, it seeks a division that is just and equitable based on each party’s contributions, future needs, and circumstances at the time of separation. Factors such as childcare responsibilities, income disparity, health conditions, and non-financial contributions like homemaking or support for a partner’s career can all influence the outcome.

To ensure your rights are protected and your contributions are fairly recognised, it’s always advisable to seek professional legal advice. An experienced family lawyer can assess your specific situation and help you pursue the most appropriate settlement. In a complex legal system, guidance from a legal expert makes all the difference in achieving a fair and sustainable outcome.