Contributions

When a relationship comes to an end and the need arises to divide up property, contributions of the parties are examined closely. Sometimes too closely.

There are different types of contributions:

Direct financial contributions

•  amount of money each party had before the relationship
• wages
• lotto winnings
• payouts such as termination or workers compensation 
• money received from inheritance

Indirect financial contributions

• getting money for a deposit to purchase a house from a relative (parents or grandparents);
• having relatives pay the mortgage/rent to help out in tough times during the relationship

Direct non financial contributions

•  looking after the house and garden
• looking after the children
• cooking the meals, ironing the shirts etc.

 Indirect non financial contributions

• getting help from relatives to renovate

A court will want to know who made the contributions and when.

Usually both parties are considered to have contributed equally to the relationship during the relationship even if one party stayed home and the other went to work.

If one of you received a pay out during the relationship or an inheritance, this will also be taken into account in a property settlement.

What can be important is if one party had a higher initial direct financial contribution to the purchase of property.

Something else the court can take into account is wastage. We will look at wastage in another post.

Determining contributions is only one step in determining property settlement.

It is not unusual for parties to disagree about the type of contributions each of them made and their worth, particularly if one party was the home maker.

If your case is that you made a greater initial direct financial contribution your case will be stronger if you can support this claim by independent evidence including bank statements etc. Of  course sometimes this can be difficult, particularly if the relationship has lasted longer than ten years, with most people only keeping their financial records for the minimum amount of time required.

Remember that in all property cases there is a requirement for full and frank disclosure.

The implications of not complying with full and frank disclosure will be dealt with in our next post.

Don't forget to get independent legal advice for your own case if you are unsure what to do next.