Property Settlements and Short Relationships

The duration of a marriage or de-facto relationship is a significant factor in working out how the “property pool” should be divided when a couple decides to separate.   In fact, determining a property settlement after a short marriage can be a complex area of the law to navigate, and it may become even more important to seek legal advice when separating.

We have all heard the news stories of celebrity marriages ending within a matter of weeks or months, including the infamous 72-day marriage of Kim Kardashian and basketballer Kris Humphries, but what actually constitutes a short-term marriage?  How is it defined, and how does the Court deal with property settlements when a couple has only been together for a short time?

What is a short-term relationship?

While there are no hard and fast rules about this in the Family Law Act (Cth) 1975, generally in Australia, a marriage or de-facto relationship is considered by the Court to be “short-term” if it has lasted less than five years.    

How does the Court handle property settlements in short-term relationships?

When a Court has to make orders concerning a property settlement following separation, one of the key goals is to ensure that the settlement is ‘just and equitable’. 

The length of a relationship is one of the factors that affects the way in which the Court assesses the contributions made by each party to the relationship.

In a short-term marriage, if there are no children involved, Courts will generally give minimal weight to a party’s non-financial contributions to the relationship and will focus more on the financial contributions each party has made.  Non-financial contributions to a relationship generally include taking care of any children, looking after the home, forgoing a career or study to allow the other party to pursue their career etc.  The impact of these non-financial contributions usually increases over time, so they are usually given more weight the longer a relationship lasts.

A couple will usually each bring financial assets such as savings, superannuation, and sometimes property, to a relationship prior to moving in together or marrying.  If they both continue to work and do not have children, then separate after five years or less, the assets contributed at the start of the relationship may remain effectively the same at the end.   The Court may  find in such a circumstance, especially if there was not an “intermingling” of finances such as each party keeping their own separate bank accounts, that each party should just keep what they initially brought to the relationship, and no further adjustment would be necessary in the property settlement. 

Alternatively, the Court may find that if the financial affairs were kept largely separate, or if the marriage was especially short, then an asset-by-asset approach would be the best way to handle the property settlement.  That is, the Court will create different “pools” for different types of assets, determine each parties’ contribution to each pool, and then divide the pools and make a property settlement accordingly.

What about when children are involved?

If children are involved, and there is a primary carer following the breakdown of the relationship, the Court may adjust the contribution based percentages attributed to each party  and also take into account the increased future needs of a particular party (such as a primary carer of children) to create a more just and equitable property settlement. 

What to do next?

If you have recently separated following a short-term marriage or de-facto relationship, contact the experienced family law team at Lamrocks Solicitors on 02 4731 5688. We can look at the situation objectively, help to determine your rights and obligations based on the unique circumstances of your separation, and provide a realistic assessment of what you should expect from a property settlement.

One of the key benefits of obtaining legal advice from the outset is that your property settlement can usually be negotiated and finalised without the intervention of the Court, saving you time, money, and the stress of prolonged court action.