70/30 Divorce Settlement Australia: Key Facts You Should Know

What is a 70/30 Divorce Settlement? 

A 70/30 divorce settlement in Australia simply refers to the division of wealth where one party receives 70% and the other gets 30% of the total asset. 

In Australian divorce law, a 70/30 split isn’t the most typical result you can get. More often, courts aim for a 50/50 or a 60/40 division of assets. However, many factors could lead to a significant imbalance of wealth distribution.  

The Family Court of Australia examines factors like financial contributions, non-financial contributions and future needs of each party. A 70/30 split is often influenced by a significant imbalance in earning capacity, health, or caregiving responsibilities that puts one partner at a fair disadvantage compared to the other. 

Future Needs and Their Impact on Asset Division 

A significant factor in determining the settlement ratio is the concept of “future needs.” This includes things like the age, health, and financial earning potential of each party. If one spouse is likely to face more financial difficulty post-divorce because of age, limited work opportunities, or childcare responsibilities, the court may allocate them a larger portion of the assets to ensure their financial stability. 

This is often how 70/30 settlements arise – by aiming to address inequalities that may affect one party more heavily in the future. 

Divorce proceedings involve many variables that look out for the couple’s future needs. For personalised advice that may help you get a fair settlement, we recommend consulting a family lawyer who can guide you through this complex process. 

What Factors can Result in a 70/30 divorce settlement? 

Several key factors play a role in influencing a 70/30 settlement outcome. Understanding these can help you gauge how your case might be assessed. 

Contributions – The court considers both financial and non-financial contributions from each party, both before and during the marriage. These contributions may include income, investments, joint assets, homemaking, and parenting responsibilities. 

Health and Age – The court considers the age and health of each spouse to ensure future financial security. Older spouses or those with health issues may receive a larger share of assets to cover potential medical expenses, lifestyle adjustments, and long-term care needs. 

Future Earnings – Disparities in earning potential, especially if one partner sacrificed career prospects for family responsibilities during the marriage, can lead to an unequal division to offset potential financial imbalances. 

Parental Responsibilities – The spouse who takes on primary childcare duties may require more resources to meet ongoing expenses, which can impact the division of their assets. 

How do you calculate a 70/30 split? 

Calculating a 70/30 settlement isn’t a straightforward formula but rather a result of a detailed assessment process. The court follows the four-step process. 

Step 1: Identify and value the couple’s combined assets. Compile a comprehensive list of all assets, liabilities, and superannuation. 

Step 2: Assess each partner’s contribution to the relationship. Determine financial and non-financial contributions made by each party throughout the marriage. 

Step 3: Evaluate the future needs and capacities of each party—analyse factors like age, health, earning potential, and caregiving duties. Career sacrifices made during the marriage period may also be considered. 

Step 4: Apply justice and equity in the division of assets. Consider what division would be “just and equitable” given all circumstances. 

If the result of these assessments leads to a determination that one party’s future needs justify a higher share of the assets, a 70/30, or more commonly, a 60/40 settlement may be considered fair. 

Being a primary source of income or the primary caregiver can be taken equally into account. If the county determines that one partner will be left financially vulnerable, they can award the vulnerable partner a larger share of the assets so they can meet their future needs and support their children (if applicable).

Income disparity and the non-financial impact of caregiving can heavily influence the court’s decision to ensure fair financial outcomes post-divorce. 

How can I Negotiate a Fair Settlement? 

If you’re concerned about receiving a smaller share of your assets, there are strategic ways to strengthen your negotiating position and advocate for a better outcome. 

Here are some tips to help you negotiate a better settlement: 

Gather evidence of contributions and a list of your future needs 

Thoroughly document both your financial and non-financial contributions to the marriage, such as income, household management, or caregiving duties. Demonstrating your contributions and future needs—such as living expenses, health needs, or caregiving responsibilities—will support your case for a more equitable division. 

Highlight financial disparities and a future earning potential 

If you sacrificed career opportunities for family responsibilities, it’s crucial to emphasise the impact on your earning capacity and future needs. Courts often consider these sacrifices when determining a fair distribution, especially when there’s a large income disparity between spouses. 

Show a willingness to compromise 

Approaching negotiations with some flexibility can lead to a more favourable outcome. Courts generally encourage mutual agreements over litigation, and being open to compromise—such as trading specific assets or proposing alternative divisions—can help you reach a fair settlement more efficiently. 

Challenge unfavourable assumptions 

If you feel undervalued or that your future needs haven’t been adequately considered, it’s essential to address these concerns early. You and your lawyer can challenge any assumptions that may unfairly limit your share, such as outdated expectations about caregiving roles or earning potential. 

Work with a skilled lawyer 

Professional guidance can be invaluable during negotiations. A family lawyer or trained mediator can help you navigate complex financial and legal aspects, present your case effectively, and advise you on what to seek based on similar cases. Mediation can also be a cost-effective way to reach a fair agreement without going to court. 

Frequently Asked Questions

1. Is a 70/30 split fair?

A 70/30 settlement can be fair depending on the circumstances, future needs, and the impact of caregiving responsibilities. A 70/30 split often aims to ensure that both parties, especially the financially disadvantaged one, can maintain a reasonable standard of living post-divorce.

2. What Is the average rate of 70/30 settlements?

There’s no “average” rate for 70/30 settlements, as each case is unique. However, this kind of split is less common and generally occurs in situations that justify a more substantial asset allocation to one party. 

3. How does gender affect divorce settlements?

In theory, gender does not affect divorce settlements. The Family Court of Australia makes decisions based on contributions, needs, and fairness, regardless of gender. 

However, traditional gender roles sometimes lead to one partner (often a woman) assuming more caregiving duties, which can impact future earning potential. The court considers these circumstances, focusing on financial realities rather than gender alone. 

4. Can I challenge a 70/30 settlement? 

Yes, you can challenge a proposed 70/30 settlement if you feel it does not fairly represent your contributions or future needs. Consulting a family lawyer can help you explore options for negotiation or legal appeal if you believe the division is unjust. 

5. What if I need a greater share due to health or caregiving responsibilities?

If you have specific needs—such as health-related expenses or ongoing caregiving responsibilities—the court may consider these in its assessment. Ensure that your lawyer presents these needs and evidence clearly to strengthen your case for an appropriate share of the assets. 

6. How long does the settlement process take?

The timeline varies widely, depending on factors like asset complexity, willingness to negotiate, and whether the case goes to court. While some settlements conclude within months, contested cases can take much longer. Mediation can often speed up the process. 

If you are looking to divorce your spouse and don’t know where to start, contact us to help you navigate the divorce settlement process.