Post-separation contributions are a monetary contribution type included in the pool of assets to be assessed in a family law property settlement.
If one ex-partner substantially adds to their assets after separation, but before settling their property settlement, they may have to share their post-separation wealth with their ex-partner.
Post-separation contributions in a case include financial and non-financial contributions, and parenting and homemaker contributions. Post-separation contributions may be made from the date of separation until either the date of settlement/date of the trial if agreement is not reached.
Contributions pursuant to section 79(4) of the Family Law Act 1975 (the Act) form part of the four step approach adopted by the Federal Circuit and Family Court of Australia (FCFCOA) towards dividing the asset pool between parties.
It is a common misconception that to determine what each party contributed to the relationship, the court need only determine:
- what assets and liabilities each came into the relationship with; and
- what money or homemaker duties each party provided during the relationship.
The court also needs to know what contributions parties have made after they separated.
A party must produce evidence on the composition of the asset pool at the time of separation and at the time of trial to allow the court to assess post-separation contributions.
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