Property Settlement - the division of assets

Who gets to keep the Fridge?

A common dispute with property settlement matters between former spouses is the division of the furniture, whitegoods and other everyday household items. This can be complicated by a number of factors, for example, who paid for the item initially or whether the item was purchased as a gift intended for one party.

It is not cost effective for parties to spend time and legal fees in arguing with the other party about the value of household items. Often, people will focus on what the particular items cost to purchase brand new, or the amount that their household contents are insured for.

How can you divide your property fairly?

If parties cannot agree on who keeps what items, then there are several options available to try and resolve the dispute without having a Court intervene:-

• Coming up with a list of agreed items (and leaving the value of the items to one side) and trying to ensure that the bigger, more expensive to replace items, are divided as equally as possible;
• Engaging a qualified mediator to assist the parties in coming up with an agreement; or
• As a last resort, it may be that parties can agree to sell the items and add any sale proceeds from those items to the cash available to divide as part of their overall property settlement.

How does the Court value household furniture and contents?

It is very important to understand that if the Court is required to determine the value of basic household furniture and contents, then the Court uses the second-hand value of the items. Therefore, the question to ask yourself, when estimating what your household items might be worth, is not “what would this cost me to replace?” or “What amount is this item insured for?”, but rather, “What would this item be worth if I had a garage sale tomorrow or I listed the item for sale on a local buy/swap/sell Facebook page?”.

Generally speaking, the average value of an entire household of contents is around $10,000.00. If there is a dispute about the value of items, then the Court may require the parties to pay for a formal valuation of the items by a qualified valuer. Valuations are expensive and often, the valuation fee payable by the parties exceeds the value of the items subject of the valuation. Alternatively, depending upon the item/s, the Court may order that the item/s be sold and the sale proceeds divided between the parties.

The exception to this general rule is if you and/or your former spouse own things like valuable antique furniture, paintings or collectables. If items of this nature exist, then these items may be treated separately to the other basic household items and valued separately for the purposes of a property settlement if you cannot reach an agreement about the value yourselves.

Sometimes, people will contact Police in relation to disputes over the ownership of household items however, it is important to note that if one party removes household goods from the home without the consent of the other party, then unless the conduct of the party when removing those items amounts to domestic or family violence, Police are unlikely to intervene.

If you are someone who is separated and having difficulty in agreeing on who keeps what in terms of your household contents, you are encouraged to seek legal advice about the best options available to you to resolve this issue.  Contact our office to make an appointment with one of our solicitors to obtain advice on your situation on (07) 4963 2000 or through our online contact form below.