Property settlement, child custody and child support arrangements are considered separate legal matters in Australia, but they can influence each other to some extent.
While property settlement deals with the division of assets and financial matters between the parties, child custody and child support arrangements focus on the well-being and support of the children involved.
The division of property and assets is primarily concerned with the financial interests of the parties. It aims to achieve a fair and equitable distribution of property of the relationship.
The Family Law Act governs property settlements in Australia, and the court takes into account various factors, including the financial and non-financial contributions of both parties, future needs, and the overall division of assets and liabilities.
Child custody, or what is now commonly referred to as parenting arrangements or parenting orders, involves determining the living arrangements and decision-making responsibilities for the children.
The primary consideration in child custody matters is the best interests of the child. The court encourages parents to reach mutually agreeable parenting arrangements that promote the child’s well-being and maintain their relationship with both parents.
Child support refers to the financial support provided by one parent to the other for the benefit of the child.
The Child Support (Assessment) Act governs child support in Australia. Child support is calculated based on a formula that considers factors such as each parent’s income, the number of children, and the amount of time the child spends with each parent.
Property settlement does not generally impact child support calculations, as child support is primarily based on income and care arrangements.
Property settlements are not assessed as income if they are received as:
- a one-time only payment, or
- regular repayments of the capital component of the property settlement.
This is because these payments are seen as repayments of the person’s own property.
However, there are some circumstances when a property settlement can affect child support. For example, if a property settlement is to be received in instalments and the court order or binding financial agreement provides for interest to be paid, that interest will be assessed as income for the purposes of any child support assessment.
We provide cheap consent orders for easy property settlements to people throughout Australia.
Our consent orders are legally binding, prepared by Australian lawyers specialising in family law.