The Four-Step Process

The ‘four-step’ process is a guide on how to divide property and finances in a “just and equitable” manner following a separation. Your Family Dispute Resolution Practitioner will structure your negotiations in the following way to achieve a fair outcome, They will work to have:

1. ‘identified and valued’ the assets, liabilities & financial resources
   • this means working out what assets each party has individually and jointly, and what debts each party has individually and jointly.
2. assessed the ‘contributions’
   • this means assessment of:
     • direct and indirect financial contributions to the property of the parties, such as contributing wage and salary earnings or gifts or inheritances from family
     • direct non-financial contributions to the property of the parties, such as building the home, unpaid support of a family business
     • homemaker and caregiver contributions such as caring for children
3. considered the ‘future needs’
   • this means consideration of the future requirements of the parties such as:
     • the age and health of the parties
     • the financial and property resources of the parties
     • who will have the primary or the majority of caring responsibilities for any dependents or children of the relationship
     • commitments of each of the parties necessary to enable the party to support themselves and their child/children
     • responsibilities of either party to support any other person
     • pension/benefit eligibility
     • a standard of living that is reasonable in the circumstances
     • the duration of the relationship and how it has affected the earning capacity of both parties
     • the ability of the parties to earn or gain employment which will support them financially
     • the extent to which maintenance would assist a party increase their earning capacity, for example, through undertaking education and training
     • the financial circumstances of a person with whom a party is cohabitating
     • the amount of child support payable by each of the parties
     • the terms of any specified court orders or financial agreements
     • any relevant fact or circumstance
4. divided your property in a way that is ‘just and equitable’
   • this means taking step 2 and step 3 into consideration and deciding on the final overall split for the parties’ property and finances

Your Family Dispute Resolution Practitioner will also facilitate your consideration of legal and financial advice you may have sought prior to attending mediation however your lawyer may accompany you to assist you with your decision making at mediation.

Your mediated Property and Financial Agreement will be based on the “Four-Step Process” as outlined above and it will save you time, money and reliance on a lengthy Court process to make decisions for you. You can then make your agreement legally binding by way of Consent Orders once the Court has had the opportunity to consider and determine that your agreement is ‘just and equitable’ in the circumstances.