In March 2024, Legal Aid NSW launched a new policy for funding family law property settlements, known as the property policy. This policy offers legal aid for cases where the net asset pool is $850,000 or less. It primarily supports individuals aged 55 and older, and those whose ability to negotiate a fair settlement is significantly affected by a disability or experiences of domestic and family violence (DFV).
For those who don’t meet the criteria under this policy, there is still the possibility of obtaining legal aid under exceptional circumstances. As outlined in Legal Aid NSW’s tipsheet on Property Settlements – Exceptional Circumstances, this additional pathway is available only to clients eligible for legal aid. Exceptional circumstances are assessed carefully, and the policy is applied sparingly, meaning only a limited number of applicants will qualify.
If you’re navigating a property settlement in Newcastle, or searching for guidance on property settlement divorce near me, these examples from Legal Aid NSW can offer helpful insight:
Case Study 1: Vulnerabilities Not Covered by the Policy
Lila is a 34-year-old woman who was married for seven years. She has no history of domestic violence and does not have a disability, though she meets the Means Test criteria. The net asset pool is approximately $400,000.
Lila struggles with significant language barriers, as she is not fluent in English and few interpreters are available for her dialect. Her husband has started legal proceedings and is pressuring her to sign consent orders that would give her only 10% of the assets. Without legal aid, Lila finds it difficult to understand the court process or access financial information, which limits her ability to participate.
Although her situation does not meet the standard criteria, her language barrier and other challenges may qualify as exceptional circumstances — an important consideration for those seeking property settlement support in Newcastle.
Case Study 2: Evaluating Exceptional Circumstances for Legal Aid
Jordan, 36, has a net asset pool of $800,000 and meets the Means Test. While not a victim of domestic violence and without a disability, both of Jordan’s children have significant disabilities requiring constant care. Jordan feels overwhelmed by the legal process and unsure of their rights.
They are concerned that selling the family home will make it difficult to find suitable accommodation or maintain vital support services. Jordan has built strong relationships with local social workers who assist with respite care.
While Jordan doesn’t meet the policy’s standard criteria, their caregiving responsibilities may hinder their ability to negotiate a settlement — and may be considered an exceptional circumstance under the property policy.
Case Study 3: Assessing Eligibility with a High Net Asset Pool
Lee, 50, was married for 30 years and experienced severe domestic violence. She now lives in a refuge, and her net asset pool exceeds $1 million, mostly from the former matrimonial home.
While she is a victim of DFV, her substantial asset pool must still be considered. In cases where the net asset pool exceeds $1 million, Legal Aid is generally unlikely — even in difficult situations.
Case Study 4: Modest Exceedance of Net Asset Pool
James, 60, was married for 25 years and has a brain injury that affects his memory and cognition. His wife managed all the finances. Their former matrimonial home is estimated at $700,000, with another $200,000 in savings transferred to her account. The estimated net asset pool is around $900,000.
James’s disability may require him to have a litigation guardian. Although the pool slightly exceeds the $850,000 limit, his inability to navigate the legal system may warrant aid under exceptional circumstances — particularly relevant for those undergoing property settlement divorce near me searches.
Case Study 5: Short Relationship with a Significant Asset Pool
Amira is 28 and meets the Means Test criteria. She had a short, on-off de facto relationship lasting two years and has a six-month-old child from this relationship. The couple did not share finances, but Amira believes her ex-partner is wealthy and owns a Mosman apartment where she occasionally stayed. They separated after a police intervention, resulting in a provisional AVO for Amira. Her ex-partner also pays more than the assessed amount of child support.
Research shows the Mosman apartment may be worth over $2 million. The property policy looks at the net asset pool, not what Amira may receive. In this case, unless there are very unique factors, it is unlikely to qualify for legal aid.
These case studies from Legal Aid NSW help demonstrate how individuals may still be eligible for support during property settlements in Newcastle, even when not meeting standard criteria. Whether you’re facing challenges due to language, disability, caregiving responsibilities or DFV, exceptional circumstances may apply.
For more information on property settlement divorce near me, or for guidance tailored to your situation, don’t hesitate to get in touch.
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