Understanding the Principle of Finality in Family Law Property Settlements

When a marriage or de facto relationship ends, financial and property matters can become a significant source of dispute. To ensure that financial ties between former partners are properly severed, the Family Law Act 1975 (Cth) includes provisions aimed at achieving a “clean break”. Two key sections that uphold this principle are Section 81, which applies to married couples, and Section 90ST, which applies to de facto relationships. Both sections emphasize the importance of ensuring that financial ties between former partners are severed wherever practicable.

Overview of Section 81 and Section 90ST of the Family Law Act 1975?

These sections provide that when a court makes an order concerning property settlement or financial matters under Part VIII or Part VIIIAB of the Act, it must, as far as practicable, ensure that the financial relationship between the parties is brought to an end. This is commonly referred to as the “clean break principle”.

The aim of these provisions is to prevent former spouses and de facto partners from remaining financially entangled with each other after their marriage or de facto relationship has ended, reducing the potential for ongoing disputes and financial dependency.

The Principle of Finality in Family Law

The principle of finality is a fundamental aspect of property settlements in family law. It is designed to:

1. Promote financial independence – Encouraging parties to move on with their lives without lingering financial obligations.
2. Reduce ongoing litigation – Limiting the possibility of future disputes over financial matters.
3. Ensure fairness – Providing a clear resolution so that both parties can confidently plan for their future.
4. Protect assets and entitlements – Preventing one party from returning to claim additional property or support after a final settlement has been reached.

Exceptions and Considerations

While Sections 81 and 90ST of the Family Law Act 1975 (Cth) promote finality, there are circumstances where ongoing financial obligations may remain, such as spousal maintenance or child support. Additionally, in certain cases, property settlements may be revisited if:

1. There has been a misrepresentation or fraud.
2. There is new evidence that was not available at the time of settlement.
3. There has been a failure to disclose relevant financial information.
4. There is a significant change in circumstances that justifies reconsideration.

However, such situations are rare, and courts generally uphold the principle of finality unless there are compelling reasons to reopen a case.

Practical Implications

For separating couples, understanding these sections means recognizing the importance of reaching a comprehensive and fair property settlement at the outset. Legal advice is crucial in ensuring that any agreement made aligns with this principle, avoiding future complications.

Additionally, parties should ensure full and honest disclosure of assets and liabilities, as any attempt to hide financial information can undermine the integrity of the settlement and lead to potential legal repercussions.

Conclusion

Section 81 and Section 90ST of the Family Law Act 1975 reinforce the principle of finality in financial settlements, ensuring that parties can move forward independently after the breakdown of a marriage or de facto relationship. While exceptions exist, the courts prioritize achieving a “clean break” wherever possible. Seeking legal advice and ensuring transparency during the settlement process are key steps in securing a fair and lasting resolution.

Family law matters can be emotionally challenging and legally complex. Having the right legal guidance is crucial to protecting your rights and securing a fair outcome that provides finality to parties.

By working with a trusted family law solicitor, such as Aylward Game Solicitors, you can ensure your case is handled with care, precision, and expertise. Our extensive experience in family law matters makes us the ideal choice to guide you through the legal process with confidence and clarity.

If you need legal assistance with a family law issue, do not hesitate to contact Aylward Game Solicitors for expert advice and support.