By Surendra Bennett - 12 Nov 2018
The Law Commission has just published its report about
suggested changes to the Property (Relationships) Act
1976.
Currently, where a marriage or de facto relationship ends
after three years, then the value of the family home is shared
equally, irrespective of when the home was purchased or the
parties' contributions to the home.
Where, after separation, the living standard and income of
a partner/spouse will be significantly less than the other party as
a consequence of the division of functions in the relationship,
then application can be made to the court for relief. Such
'economic disparity' claims typically occur where one party gives
up their career to raise the children.
Some of the highlights from the Law Commission's report are:
- A proposal to change the status quo so that when the family
home is owned by one party before the marriage or de facto
relationship, then only the increase in value from
marriage/relationship commencement will be shared.
- Another proposal is to merge such claims with claims for
spousal maintenance. This would mean that partners/spouses will be
required to share their combined income for a limited period after
they separate. This new regime will be referred as a Family
Income Sharing Arrangement (FISA). It is proposed that FISA
will only apply to people who:
- Have children; or
- Been together for 10 years or more;
or
- Have built or sacrificed careers
because of the relationship.
There are many other proposed changes to the current law.
If you would like to know more about the proposals or about
the current state of the law as to relationship property, then
contact me, Surendra Bennett, or any other member
of our specialist Family law team.