Divorce Just Got A Little Less Expensive

While there is no avoiding the fact that the Family Court system in Australia needs a massive overhaul, at least two steps have been taken in the right direction by the Federal Government.

Effective from April 1, it will be possible to apply to the Courts to obtain complete details of a partner's superannuation savings directly from the Australian Tax Office.

This will mean a large saving both in terms of legal costs, which can be astronomical even in situations where the matrimonial asset pool is modest, and in time.

It will effectively stop one partner not disclosing the full extent of their superannuation savings, savings that should legally become part of the matrimonial asset pool, and so be subject to division.

It also provides a simple clear pathway to obtain this information and replace the need for endless court applications and searches and with that excessive legal bills.

Hopefully, it will also pave the way to obtain more information during divorce proceedings directly from the ATO and perhaps more importantly, open the door to obtain bank account searches for accounts held by the big banks.

In addition, the Federal Government has also created a new streamlined plain-language super splitting request form that does not require legal advice to complete.

The industry fund, HESTA, has been the first fund to trial the new form, reporting positive feedback from members, and so, based on this experience, it is expected to be quickly taken up through the industry.

This will help couples who are successfully finalising their own divorce settlements, to be able to take one more step forward without having to resort to expensive lawyers.

These changes come in response to a report by the Women's Legal Service Victoria, 'Claims, Large Battles By Women' published in 2018.

It found many women were missing out on their share of super after separation, which was in turn contributing to poor economic outcomes including long term poverty and homelessness.

While a lot more needs to be done to simplify the splitting of matrimonial assets accumulated during a marriage, these two innovations are a significant step forward to reduce the time and expense associated with most divorces.

These are important reforms. The faster divorcing couples can reach a financial settlement after separation the less chance there is for the divorce to become acrimonious.

These simple steps are a win for everyone.