More Than Money: Contributions – Non-Financial, Parent & Homemaker
It not unusual to feel concerned about the outcome of your property settlement where your former partner has had a higher income or made greater financial contributions than you throughout your relationship. This article aims to help you understand how your indirect financial, non-financial, and parenting and homemaker contributions may “balance the scales” in your property settlement – it’s about more than money alone!
How And When Are My Contributions Considered?
Determining your property settlement entitlements consists of five stages, with each stage assessing a different aspect of the relationship to determine whether an adjustment is needed based on contributions and future needs. During the third stage of the 5-step property settlement process, the contributions made by you and your former partner are considered from the beginning of your relationship until after its end. These contributions are reviewed holistically, and include:
- Direct and indirect financial contributions;
- Non-financial contributions; and
- Contributions to the welfare of the relationship, including contributions as a homemaker or a parent.
Read: The Myth of the 50-50 Split – What to Expect in a Property Settlement
INDIRECT FINANCIAL CONTRIBUTIONS
Indirect financial contributions are contributions made by one party that allows the other party to make direct financial contributions to the relationship. Examples of indirect financial contributions include where one party:
- Applies their income directly towards a mortgage or property acquisition;
- Acquires a gift or inheritance;
- Uses their income to conserve, improve or renovate property, such as paying recurring expenses, rates, outlays, and household bills for the family home;
- Provides free or cheap accommodation or the use of a motor vehicle to the other party;
- Engages a family member or friend to complete works to the family home or to the other party’s business assets for a discounted or gratuitous fee; and
- Pays for non-property related expenses such as holidays and school fees.
NON-FINANCIAL CONTRIBUTIONS
Non-financial contributions refer to contributions that have increased the size of your property interests. Non-financial contributions are defined as the ‘acquisition, conservation or improvement’ of any property to the parties’ relationship. Typically, they do not present an immediate financial reward, however, work over time to increase the value of the relevant assets. Examples of non-financial contributions include where one party:
- Carries out labour on the family home, including:
- Renovations such as building a fence or an extra room;
- Installing flooring or paving;
- Painting and interior decorating;
- Landscaping the garden; and
- Plumbing and carpentry;
- Performs secretarial or clerical work for the working party; and
- Completes accounting for the working party’s business without being paid.
Did you know?
In the 1992 case of In the Marriage of Whiteley, non-financial contributions were accepted in the form of ‘artistic inspiration and [being involved] intellectually as critic and confidante’.
Homemaker Contributions
Your efforts as a full-time parent or homemaker do not go unnoticed. The Court will recognise the efforts of one party who has contributed significantly and substantially to the welfare of the family. Essentially, a party’s contribution to domestic duties is recognised, as it also allows the other party to work full time and make greater direct financial contributions. Examples of homemaker and parenting contributions include where one party takes care of:
- Parenting duties;
- Caring for a pet;
- Cleaning;
- Washing and ironing;
- Cooking; and
- General house maintenance duties.
It is important to note that the Court does not assess the quality of a party’s efforts, rather what homemaker contributions were made and who they were performed by. For example, the Court will consider where a party has engaged a cleaner, housekeeper, gardener, or other service provider.
How Is An Adjustment Made Based On My Non-Financial And Homemaker Contributions?
There is no “cookie-cutter” rule when it comes to determining one party’s entitlement to property interests, and instead, it is based on what is just and equitable based on the facts of each individual case.
It is important to note the Court does not place greater value on one particular type of contribution over the other, i.e. the Court will not simply place greater weight on one party’s direct financial contributions over the other party’s contributions as parent and homemaker.
Contact Us
We recommend seeking the advice of an experienced family lawyer to help you understand how your contributions may impact your property settlement. Contact our family law team today for personalised advice on your matter.
