Highlights
- The rule of thumb is a 50/50 division of assets.
- A settlement can be reached by both parties, but if the two don't come to an agreement, the judge may order that the property be sold and earnings divided.
- The divorce settlement is a different procedure from the settlement of assets.
'May PERAan' is SBS Filipino's podcast series which features financial experts seeking to answer the most common questions about money and finances.
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Paano ang hatian ng ari-arian kapag naghiwalay ang mag-asawa?
SBS Filipino
12/04/202210:46
"Here in Australia, if a relationship is considered as long - that is, around 15-20 years - the rule of thumb is property is divided 50/50," Florante Abad shares.
Florante Abad is a solicitor who specialises in family law.
While the rule of thumb is equal division of assets, he shares that there are circumstances wherein the distribution varies.
Pool of assets
Florante says that matrimonial assets are placed under an umbrella term called poolo of assets.
"It doesn't matter whose name the property or land is under, it will be considered as an asset of the marriage.
"Assets such as jewellery, bank accounts, shares or stocks will all be under the pool of assets. That pool is then divided between the former partners."
Division can depend on the contribution of each partner to the property and marriage.
"The judge considers the length of the relationship and the contributions of each party to the acquisition and maintenance of the property.
"Direct financial contribution to the home should be proven.
"When we talk about contribution, we don't just talk about direct financial contribution. For example, let's say you are unemployed but you take care of the home, take care of the kids and drive them to school, cook, these contributions will be given a monetary value."
Coming to an agreement
Parties can meet before a hearing in court.
"Before the actual hearing, there is what is called mediation or judicial conference to give the parties an opportunity to come to an agreement about dividing assets. The agreement is called binding financial agreement or BFA. It could be done before, during or after the marriage ends.
"Or if the case is in court, it is called consent orders. An amicable settlement is reached. The judge lets you agree between yourselves how the you divide your assets."
Both parties can agree to one keeping the home and paying the other party their share of it.
"The house can be sold. If there is a mortgage on the house, the first one that gets paid is the bank. When there is money left, that's what they divide between themselves.
"They can also agree that one party gets the money in the bank, while the other keeps the home."
If the parties can't come to an agreement about the home, the judge can order that the property be sold and that the earnings be divided.
Separate procedures
Florante says that the divorce settlement and setllement of assets are different procedures.
"In the Philippines, when you file a declaration of nullity of marriage, or annulment of marriage, along with the filing of the case is the dissolution and distribution of assets.
"Here in Australia, it's different. The divorce settlement is a different procedure from the settlement on assets.
The distribution of the assets will proceed whether or not the divorce is filed.
"If you are de facto separated, you can already file for the distribution of assets. With divorce, you have to file it in Family Court of Australia and prove that you have been separated for at least 12 months."
