Family law FAQ #1 - What law applies to me?
Under the Constitution, the Commonwealth Government has the jurisdiction to make laws in relation to divorce and matrimonial causes, including parental rights and custody issues. Because the Constitution did not expressly give the Commonwealth Government jurisdiction over de facto relationships and exnuptial children, under the Constitution these matters would fall within the jurisdiction of state governments.
Most states have chosen to refer some or all of their jurisdiction over de facto relationships and exnuptial children to the Commonwealth government. Western Australia has retained its law making authority with respect to de facto relationships and exnuptial children.
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Family law FAQ #2 - What about personal safety during
court
appointments and proceedings?
Here someone must attend court proceedings, it is important that the Court is notified about any concerns regarding personal safety. In situations where someone is required to attend a court appointment or legal proceedings, the court can make special arrangements where someone has fears about being in the presence of their former partner. Depending upon the circumstances, it may be possible to participate in the proceedings by phone, by video, or in a separate room.
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Family law FAQ #3 - What is the impact of family violence
orders on legal proceedings in the Family Court?
The existence of a family violence order may be significant in proceedings before the Family Court, particularly where the Court is being asked to make a parenting order related to children spending time with each parent (formerly called a contact order). It is important that a parenting order does not expose anyone to family violence.
Recent amendments to the Family Law Act 1975 (Cth) were intended to clarify the relationship between orders made under the Family Law Act 1975 requiring a child to spend time with a person, and family violence orders made under the law of a state or territory to protect a person from family violence.
Following recent legislative changes, where a Court exercising jurisdiction under the Family Law Act 1975 makes an order providing for a child to spend time with a person and this order is inconsistent with an existing family violence order, the Court is now obliged to explain to the parties affected (or arrange for someone else to explain to them), the effect and consequences of the order and how the parties are to comply with the order.
In addition, as a result of recent legislative amendments, when an application for a family violence order is made in a state or territory court, that court now has the jurisdiction to amend an existing family law order providing for a child to spend time with a person, if this is necessary to give effect to the family violence order. This ensures that people are protected where a family law order may expose them to violence or risk of violence.
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Family law FAQ #4 - How are property issues dealt with
for de facto relationships?
On the breakdown of a de facto relationship, property issues are dealt with by state laws. State courts (rather than the Family Court of Australia) have jurisdiction. If you are in a de facto relationship, it is important to understand the laws that apply in your state.
In New South Wales, for example, it is usually necessary to demonstrate that you lived in a de facto relationship for at least two years, although in some situations it is possible to make a claim for a property settlement if the relationship lasted less than two years - for example, if there is a child of the partners. Once an application for a property settlement has been made, the court will consider the financial and non-financial contributions of each de facto partner in making a property settlement.
For matters involving ex-nuptial children of de facto couples, it is still necessary to make an application to the Family Court of Australia, the Federal Magistrates Court or the Family Court of Western Australia.
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Family law FAQ #5 - What is a family violence order?
A family violence order is an order made under a law of a state or territory to protect someone from family violence. Family violence orders have different names in different states: apprehended domestic violence orders (NSW), intervention orders (Victoria), protection orders (Queensland and ACT), restraining orders (South Australia, Western Australia and Northern Territory) and restraint orders (Tasmania).
Family violence orders typically prohibit one parent from coming within a set distance of another parent, or prohibit one parent from stalking or harassing the other parent. Sometimes family violence orders can contain limited exceptions, such as allowing contact between parents for the purpose of delivering or collecting a child.
Children can sometimes be included on family violence orders made for a parent. More commonly, child protection orders are made by a state Children’s Court where there are grounds for believing that a child is in need of protection.
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Family law FAQ #6 - What about children?
Both parents have full responsibility for all their children until a child is 18. The family law system strongly encourages parents to reach an agreement regarding the care of their children. The court can formalise these agreements by making a consent order.
Where agreement cannot be reached, an application may be made to the court for a parenting order. In the past, orders were categorised as being residence, contact or specific issues orders. However, following recent legislative amendments introduced by the Family Law Amendment (Shared Parental Responsibility) Act 2006, all of these orders are now referred to more broadly as parenting orders. Child maintenance orders have remained a separate category of parenting order.
In making a parenting order, the court will always consider the best interests of the child, having regard to a number of factors set out in the legislation. Those factors include the benefit to the child of having a meaningful relationship with both parents, and the need to protect a child from physical or psychological harm.
Recent legislative changes also require parents to attend family dispute resolution in order to resolve disputes about children prior to lodging an application with the court. These changes are intended to promote the sharing of parental responsibility in the event of family breakdown.
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Family law FAQ #7 - What is a financial agreement?
Financial agreements are agreements about financial arrangements in the event of marriage breakdown. Since December 2000, these agreements can be legally binding, provided that they are signed and provided that each person received independent legal and financial advice before signing. In limited circumstances courts can declare the agreement to be invalid.
Financial agreements can be made before, during or after a marriage. They often cover matters such as the division of assets after the marriage and the financial support of one spouse by the other after the marriage. They are intended to impact the division of property and the payment of maintenance.
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Family law FAQ #8 - How do you get spousal maintenance?
Spouses are generally expected to be self-supporting following separation. However, in some circumstances spousal maintenance may be payable where one spouse is unable to meet his or her own needs and the other spouse has the capacity to assist. For example, a high income earner may have to pay spousal support to a former spouse who is unable to work because of a physical disability or where the former spouse is responsible for caring for young children.
Applications for spousal maintenance must be brought within one year after obtaining a divorce.
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Family law FAQ #9 - How is property divided?
Spouses who are getting divorced can finalise a property settlement at any time after separation and before either spouse has applied for a divorce. Once a divorce has been obtained, however, you only have one year in which to apply to the court for an order for a property settlement. If more than a year has passed since obtaining your divorce, it is necessary to obtain the court’s permission to bring the application.
In most cases, parties are able to agree on how property will be divided. Parties can seek to have their agreement formalised by asking the court to make a consent order in the terms of the agreement.
Sometimes spouses cannot agree on how property will be divided and it is necessary to apply to the court. The court will consider all of the property and financial resources of the parties. This includes things like real estate, investments, interests in companies, family trusts, life insurance and superannuation. In making a fair division of property, the court will consider each spouse’s contribution to the family, and contribution to the acquisition, conservation and improvement of the property. The court will also consider both the present and future income of each spouse, as well as their needs and responsibilities.
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Family law FAQ #10 - When can I remarry?
It is against the law to remarry until a divorce becomes final.
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Family law FAQ #11 - Can I apply for a divorce if we have
not lived physically apart
for the twelve month period?
In some circumstances, it is possible to apply for a divorce even though you have not lived physically apart from your spouse for a twelve month period. For example, the family law system is designed to encourage couples to reconcile their differences. If a couple gets back together for one period of up to three months for the purpose of reconciliation, it is possible to use the periods before and after the period of reconciliation to calculate the twelve month separation period.
In some circumstances, it might be possible to apply for a divorce where you and your spouse have lived under one roof for all or part of the twelve month period. In these situations, it is necessary to satisfy the court that you and your spouse lived separate lives despite living in the same home. If you intend to live separate live under the same roof as your spouse, it is a good idea to consult a solicitor for advice on how to structure your relationship and your daily affairs in a manner likely to satisfy a court that you and your spouse lived separate lives.
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Family law FAQ #12 - What are the requirements for
obtaining a divorce?
Australia has a “no fault” divorce system and courts do not consider whose fault it was that the marriage has broken down.
In Australia you can only apply for a divorce after you have been physically separated from your spouse for a period of at least twelve months. In a divorce application it is necessary to show that the marriage has broken down and there is no reasonable likelihood that you will get back together.
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Family law FAQ #13 - Can a partner make an application
to receive
spousal maintenance?
Yes in certain circumstances.
The power to make orders for spousal maintenance in respect of a married couple is found in section 74(1) of the Family Law Act. The section creates a very wide power and allows the Court to make such order as it considers proper for the provision of maintenance in accordance with the power. The criteria to be taken into account in determining whether or not to make an order are set out in section 75(2) of the Family Law Act.
The power to award spousal maintenance in de facto matters (following amendment of the Family Law Act) is wider than the old Property (Relationships Act) NSW 1984. It is still not as wide as the maintenance provisions available to a married couple.
The contract provision is section 90SE(1) of the Family Law Act. An order may only be made after the de facto relationship has broken down and the Court may make such an order “as it considers proper” for the maintenance of one of the parties to the de facto relationship in accordance with this division.
Section 90SF of the Family Law Act sets out virtually the same set of criteria as section 75(2) of the Family Law Act. However, the position for de facto couples is not as generous as that for married couples because:-
A. the Court will only order a party to a de facto relationship to pay maintenance to the extent to which the first mentioned party is reasonably able to do so; and
B. only if the second party is unable to support himself or herself adequately whether by reason of having the care and control of a child or by reason of age, physical and mental incapacity for appropriate gainful employment or any other adequate reasons .
There are two additional requirements which must be satisfied before a Court can make an order.
Geographical
There is a geographical requirement – section 90SD of the Family Law Act must be satisfied.
This means that:-
(a) Either or both of the parties to the de facto relationship must have been ordinarily a resident in a participating jurisdiction when the application for the order was made; and
(b) Either:
(i) Both parties to the de facto relationship were ordinarily residents during at least 1/3 of the de facto relationship; or
(ii) That the applicant for the order made substantial contributions in relation to the de facto relationship of the kind mentioned in section 90SM(4) of the Family Law Act; or
(iii) In one or more state or territory that are participating jurisdictions
Length of Relationship or Special Circumstances
The applicant must satisfy at least one of the matters in section 90SB of the Family Law Act which means that:-
(a) That the period of the total periods of the de facto relationship is at least 2 years; or
(b) That there is a child of the de facto relationship or that
(c)
(i) Substantial contributions;
(ii) That failure to make maintenance orders would resolve in serious injustice to the applicant; or
(d) The relationship is or was registered under a prescribed law of a state or territory.
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Family law FAQ #14 - Can we agree between partners that
there will be no spousal maintenance?
Yes in certain circumstances. The Family Law Act makes very specific provisions as to what is required. One should be very careful that the documentation is in the correct format. Watson & Watson is experienced in this regard and have noticed that many documentation where parties apparently intended that there would be no future spousal moneys claimed, has been ineffective.
The problem has been so severe that the law has recently changed and now there are some circumstances even if where the documentation is not as required by the legislation, the documentation can be taken into account.
It is better to have the proper documentation than documentation which does not comply with the law.
Similarly, if you have entered into an agreement which, on the face of it, indicates that there will be no spousal maintenance claims, it may very well be a document that does not comply and there may be opportunities available to revisit that area.
Also there are provisions in the Family Law Act which set out when one can seek to set aside or vary a binding financial agreement.
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Family law FAQ #15 - Is an agreement between the parties
binding in all circumstances?
No, there are special requirements of the Family Law Act for an agreement to be binding. The documentation can be entered into before marriage, during the relationship or after the breakdown of a relationship.
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Family law FAQ #16 - Does the Family Court have power to
bind third parties such as Trustees, Directors and Creditors?
Family law FAQ #17 - How does the court approach the
assessment
and adjustment of property between the parties?
It is now well established that the preferred approach to the court exercising its broad discretionary powers pursuant to s.79 of the Family Law Act involves a four-step approach.
Those steps may be briefly described as follows:
1.The Court is required to identify and value all of the relevant property of the parties, which includes all property irrespective of its source or time of acquisition. Such value is usually determined as at the date of trial (“step 1.”);
2.The Court is required to have regard to the direct and indirect financial and non-financial contributions by or on behalf of each of the parties to the marriage including contributions as a homemaker and parent. Such contributions are to the marriage and are not limited to the property then in existence. The Court should come to a determination as to a proper apportionment between the parties, usually in percentage terms (“step 2”);
3.The Court is then required to have regard to s.79 (4) (d) to (g), or such of those as are relevant. In particular, by sub-paragraph (e) this incorporates those matters listed in s.75 (2). The Court is then required after having regard to those matters, to determine what adjustment, if any, should be made to the apportionment referred to above (“step 3”);
4.Having made the above adjustments make an assessment whether the order proposed is just and equitable (“step 4”).
The Court will not make an order unless it is satisfied that it is just and equitable to do so. The discretion conferred upon Judges in the Family Court pursuant to s.79 of the Act is very broad. Whilst undoubtedly there have been many decisions under the Act, the extent to which one can look at any prior decision and use it as a guide to how another Judge ought or will approach the exercise of discretion in another case is particularly limited. Such is the nature of a judicial discretion. There are two approaches to determining contribution. One is the asset by asset approach and the alternative is the global approach. The global approach is the approach more generally preferred by Family Court Judges. Unless there are particular reasons for doing so, this is the approach most Family Court Judges will adopt. There is no significant reason in this case why a global approach should not be adopted in determining the overall result.
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Family law FAQ #18 - What are the courts procedures for
determining property matter as between the parties?
The Court puts in place a number of processes whereby a party may mediate and/or resolve their financial dispute prior to coming to a Court. Usually at the court appearance, each party is requested by a lawyer, solicitor and as counsel depending upon the complexity of the case.
Before the case is allocated a date for hearing at which each parties attend with their respective lawyers the court process provide for opportunities to settle during process defence the hearing.
Upon the commencement of proceedings for property settlement, the Court will allocate the matter a return date. For example of, the Husband or Wife commenced proceedings say August 2010, and the matter was given a return date for the purposes of a Case Assessment Conference. At that Case Assessment Conference, the Court determines what the issues are for determination and attempts to identify, which issues may well, be in dispute and which issues may not be in dispute.
The next court-based date is a Conciliation Conference, which is a process whereby the parties attend before a Registrar of the Court for the purposes of attempting to resolve with the assistance of a Registrar their outstanding dispute. For the purposes of that Conciliation Conference, the parties would provide financial questionnaires and other documents.
In the event that the parties are unable to resolve their dispute at a Conciliation Conference, the matter will thereafter be placed into a list of cases awaiting allocation to a single judge. At this stage, the current delays in the Family Court means that a matter may well sit in that list of cases awaiting allocation to a trial judge for a period of anywhere between 12 to 15 months from the date of the Conciliation Conference.
When the matter is ultimately allocated to a trial judge, the trial judge will make directions for trial including the preparation of affidavits, the identity of issues in relation to the pool of assets that need valuation and other procedural directions. The Court would ordinarily thereafter make a series of directions for the filing of affidavits and assuming that the parties comply with those directions, it may well be that the matter is then allocated a hearing date 3 to 6 months later.
The procedure at trial, depends on the matters in issue, but ordinarily the usual procedure is that the parties file through their respective counsel an Outline of Case document approximately 3 to 4 days prior to the hearing which records the Affidavits relied upon, a Minute of Orders sought, a Chronology and the Balance Sheet as well as identifying the various issues in dispute between the parties.
On the first morning of the trial, there is usually a short opening given by each of the respective counsel, which merely elaborates or expands upon the material that has been set out in the Outline of Case document. The Court deals with objections to evidence and thereafter the Applicant will enter the witness box. It is unusual for a party to be granted leave to lead evidence in chief. The evidence in a case has been identified in the affidavit filed by each of the parties. The Applicant is then the subject of cross-examination which is designed to test propositions of fact contained both in the affidavits of the Husband and the Wife, and other witnesses, and matters relevant to the issues in the proceedings. Following the cross-examination of the Applicant, counsel for the Applicant is entitled to re-examine the Applicant as to matters arising out of the cross-examination. The balance of the Applicant’s witnesses are then called and each of them are the subject of cross-examination and if necessary re-examination. At the end of the cross-examination of the Applicant and/or the Applicant’s witnesses, that is generally regarded as the close of the Applicant’s case. Thereafter the Respondent enters into the witness box and the procedure occurs in the same fashion whereby she would be cross-examined and then re-examined, and each of her witnesses would proceed through the witness box in the same fashion.
At the end of the Respondent’s case, the Applicant may well have a case in reply whereby he would be permitted to adduce evidence generally about some new matter of which he may not have been aware that arose during the course of either his cross-examination or arose as a consequence of a statement made by the Wife.
The Court then would then hear Submissions from each of the parties and would later deliver a Judgment. Appeals can lie from that Judgment to the Full Court of the Family Court.
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Family law FAQ #19 - How does the court decide with a lottery win - who gets to keep the prize?
From time to time the Family Court has been asked to determine how a lottery win by either the husband or wife during the course of the marriage is to be treated. At first thought it may be the generally held view would be that the person who bought the ticket should keep the winnings. The Family Court has not adopted this approach and though the outcome may vary from case to case the situation is that where the husband and wife are living together and share their finances and the ticket is purchased by one of them from a joint financial source then the purchaser of the ticket does not necessarily keep the winnings. The Court will look at the windfall gain as a contribution because the lottery win contributes to the property of the party and if it still remains in existence at the time of the trial it should be available for distribution between the parties.
The critical question is by whom the contribution is made. The fact that one or other of the parties purchased the ticket from moneys which he or she happened to have at the particular time, is not the final and determinative issue. The contribution may be regarded as a contribution by the parties equally and not by one particular party.
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