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07 May 2021

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Family Law


Property settlement – Asset or financial resource?

What is the difference in distribution between the parties when an interest in a trust is treated as either part of the asset pool or a financial resource?


Thank you for the question.

If an interest in a trust is treated as an asset, it is included in the balance sheet and available for division between the parties. If it is treated as a financial resource of one of the parties, it is not divided but its significance on division of property is assessed under s 75(2) of the Family Law Act 1975.

For further information see the By Lawyers Property Settlement guide and 101 Family Law Answers.