What are post-separation contributions and why are they important?

Post-relationship contributions are any contributions made by either party towards relationship property (assets or debts) after the date of separation, but before the date of settlement.

The most common types of post separation contributions are contributions towards ‘outgoings’, and occupational rent adjustments. 

Contributions to ‘outgoings’ include contributions made by one or both parties to house and contents insurance policies, city and regional council rates, environment rates and loan repayments on a mortgage secured against relationship property.

Post-separation contributions can also include a contribution towards borrowing from a finance company where the borrowing is secured against relationship property.  Most commonly these include loans for cars and hire purchase for furniture and chattels. 

The general principle for post-separation contributions to outgoings of the relationship is that the party that has paid the lower amount would need to compensate the party who has paid the higher amount. This top-up would be half of the difference in contributions from the date of separation to the date of settlement. 

Occupational rent post-separation contributions are compensation payments that are often negotiated as part of a settlement. This occurs when one party who is an owner moves out of the family home and does not have the benefit of residing in the family home. 

Occupational rent can also be used to set off the payments one party may claim against the other post-separation outgoings contributions. Occupational rent does not apply to family homes owned by companies or trusts

If a home has a rental appraisal from a real estate agent for example, of $500.00 per week, then the maximum amount that the one party can claim against the other is $250.00 per week as occupational rent.  These payments start from the date in which the party leaves the family home and continue to the date of the settlement of the family home.




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Shaun Cousins
Associate