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Mitchell is the Managing Principal of Sharrock Pitman Legal. He is an Accredited Specialist in Commercial Law (accredited by the Law Institute of Victoria). He also deals with areas of Employment Law, Wills & Estate Planning and Probate and can answer all your questions related to probate.

For further information, contact Mitchell on his direct line:


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What happens in a property division if you or your partner earns a higher income? What are "special skills or contributions" and how are they valued in a relationship breakdown?

Often in relationships, one partner will earn a significantly higher income than the other, or will have built up a sizeable investment portfolio due to their financial acumen. Sometimes this is referred to as that partner having special or extraordinary skills or contributions, which can lead to that partner offering greater financial contributions within a relationship.

Dividing Assets

When it comes to dividing up assets following a separation, these special skills are often raised as contribution factors towards the relationship, in an endeavour to increase the division of assets to that particular partner.

Property Division

In any property division, it is not simply financial contributions that are important to consider. The non-financial contributions of each partner must also be taken into account in a property division.

It may be the case that, while one partner is engaged in high income employment, the other partner spends a large proportion of their time maintaining the home and caring for the children. This division of family responsibilities enables the partner earning a higher income the freedom to pursue more demanding career opportunities, which may necessitate, for example long working hours or extensive travel.

Additionally, where a partner has sacrificed their own career in order to care for the family and support the higher income earner, this will generally be factored into a settlement by way of an adjustment in that partner's favour. This takes into account their lower earning capacity and ongoing parental care responsibilities as part of the separation.

How are these assets divided in a settlement?

Any property settlement needs to take into account both financial and non-financial contributions made by each partner. Property settlements must also take into account the future situation of each partner following the resolution of the matter, and ultimate division of assets.

Overall, the settlement reached needs to be one that meets the legal terminology of being "just and equitable". This means that there is no 'one size fits all' in family law, and that the settlement reached is usually based upon the circumstances of each individual case.

For more information on property and finance following a separation, refer to the Family Court of Australia.

How can Sharrock Pitman Legal assist me?

Should you like to know more about how your contributions will be taken into account in a property division, our accredited specialist family law team would be pleased to assist you. Feel free to contact them on 1300 205 506 or via email at family@sharrockpitman.com.au.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

Liability limited by a scheme approved under Professional Standards Legislation.

Written by one of our lawyers

,

.

Katharine Layne

For further information contact

Katharine Layne

Katharine is a Senior Associate of Sharrock Pitman Legal.

She is an Accredited Specialist in Family Law (accredited by the Law Institute of Victoria). For further information, contact Katharine on (03) 8561 3319.

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Changes to the Family Court as a result of COVID-19

COVID-19: Guide for parenting during a pandemic (Vic)

Discrete Property List in the Federal Circuit Court

However, in this article we will set out the factors that influence how long it will take to obtain a Grant of Probate and to administer an estate in Victoria.

The basics

First things first: what is a Grant of Probate? A Grant of Probate is effectively a document issued by the Supreme Court of Victoria which formally authorises an executor to manage the estate of a deceased person in accordance with their Will. Without Probate, the asset holders (say a bank or share registry) cannot be satisfied as who has the correct authority to receive the deceased's assets and may refuse to pay out.

Sometimes, for smaller estates or if assets are mostly jointly owned with a surviving spouse, asset holders might agree to release payment without requiring a Grant of Probate. This is usually on the basis that the person who receives payment promises to repay (or Indemnify) the asset holder if it turns out they paid to the wrong person.

If there is no Will, then you cannot obtain a Grant of Probate. Instead you obtain Letters of Administration. This is effectively the same, in terms of authorising someone to administer the estate, and would usually be obtained by the person who is the closest next-of-kin to the deceased.

“A Grant of Probate is effectively a document issued by the Supreme Court of Victoria which formally authorises an executor to manage the estate of a deceased person in accordance with their Will.”

Timeframes for Probate in Victoria

In order to obtain a Grant of Probate, the Court needs to be given information about the assets and liabilities of the estate, the deceased person, the witnesses to the Will, the executors and the Will itself. An advertisement of your intention to apply for Probate must also be placed on the Supreme Court website for at least 14 days prior to any application.

Often, making enquires to obtain all the necessary information can take a number of weeks. Also, you will need the Death Certificate for the application for Grant of Probate and possibly for making proper enquires regarding the assets and liabilities. Waiting for the Death Certificate to issue can therefore add a few more weeks to the process. Overall, if you have your application for Grant of Probate lodged within 1 to 2 months from the date of death, you are making timely progress.

The Court itself does not take long to process the application (maybe another 1 to 2 weeks) and this is done 'on the papers'. This means you do not have to go to a court hearing. There is also a general discretion for the Court to issue a 'Requisition' asking that you provide more information before they process the application and this can delay matters.

“Overall, if you have your application for Grant of Probate lodged within 1 to 2 months from the date of death, you are making timely progress.”

So, here we are a few months after death and you finally have a Grant of Probate. It is important to remember that this is the start of the estate administration and not the end. For a very simple estate, you might only need a further month or so to cash the assets and pay them to the correct beneficiaries. However, it can often be more complex than that. Factors that determine the timeframe to administer the estate include:-

  • Some assets will take time to cash or transfer. For example, if selling a property, final settlement might be 60/90/120 days from the day of sale.
  • There is a 6 month period for challenges to be brought against the estate and executors must wait until this period expires before distributing the estate, if there is any risk that a disgruntled family member might come forward.
  • There might need to be final tax returns for the deceased or for the estate. Failing to wait for the ATO to process these could leave the executor personally liable for a tax bill.
  • You might need to advertise for creditors to come forward and wait for a period of months while this advertising timeframe expires. This protects the executor if they are unsure of all of the deceased's financial dealings and creditors.
  • It might not always be a good time to immediately cash estate assets. For example, the shares just took a nose-dive, do you still sell regardless of available price?

There is a general rule that executors have an 'executor's year' to complete the estate administration. This means that you should be aiming to have the estate finalised and distributed within 12 months from the date of death.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

Liability limited by a scheme approved under Professional Standards Legislation.

Need help with Probate?

Our expert legal team is ready to take your call!

Mitchell is the Managing Principal of Sharrock Pitman Legal. He is an Accredited Specialist in Commercial Law (accredited by the Law Institute of Victoria). He also deals with areas of Employment Law, Wills & Estate Planning and Probate and can answer all your questions related to probate.

For further information, contact Mitchell on his direct line:

DIRECT LINE: 
(03) 8561 3318

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