What are Future Needs and why are they Considered?
When a married or de facto couple separates, a property settlement usually needs to take place. This process of ‘property settlement’ will determine ‘who keeps what’ of the parties’ house, cars, superannuation, and other assets and liabilities. In working out a property settlement, there is a 4-step process to follow. Our article ‘Property Settlement: The Four Step Process’ in our client library on our website explains each step.
This article focuses on the third step in that process, where the future needs of each party are assessed.
Assessing future needs involves looking at, as best we can, the likely future circumstances of each party. An assessment is then made as to whether one party should receive an adjustment (i.e. more of the property pool than they otherwise would) because they have greater future needs.
The factors to consider in working out future needs are listed in the Family Law Act 1975 (Cth) (“the Act”), within:
- Section 75(2) – for married couples; and
- Section 90SF – for de facto couples.