What Happens To Post-Separation Redundancy Payments?
Does a redundancy payment received after separation get included in a property settlement? The Family Court recently considered the question where the wife argued that she and the husband had contributed equally to the husband’s redundancy that was received post-separation. What did the court decide?
The couple had been together for 19 years. During the relationship, the wife had been the homemaker and parent to their two children, while the husband had worked full-time.
The husband’s redundancy payment was based on two times his salary as well as a bonus to compensate him for the loss of future income. He submitted that the wife had made little, if any, contribution. Since an equality of contribution was found between the parties, the wife argued that it could not be said that she made no contribution to the redundancy payment.
The appeal Court agreed with the wife, concluding that the wife had made a substantial contribution to the husband’s earnings and accumulation to his superannuation during the marriage.
It may seem fair to some and absurd to others. But each matter is unique and is addressed according to your personal circumstances. It is worthwhile to seek professional advice.
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