Does infidelity affect divorce settlement in Australia?

In Australia, infidelity does not have a direct impact on the financial settlement of a divorce.

The Family Law Act 1975 establishes a "no-fault" divorce system, meaning the court does not consider the reasons for the breakdown of the marriage or defacto relationship when determining an application in relation to financial matters, including issues of property division or spousal maintenance.

Instead, the court focuses on a just and equitable division of assets based on factors such as:

• The financial contributions of each party.
• The non-financial contributions – such as manual labour to improve or renovate a property of the marriage.
• The contributions to the welfare of the family - such as homemaking or caring for children.
• The future needs of each party, including their earning capacity, age, health, and care of children.

However, if the infidelity has involved a significant financial waste or misuse of marital assets, this may be considered in the settlement process. For example, if a spouse has recklessly spent a significant amount of money whilst having an affair with the intention of reducing the size of the asset pool, the expenditure of funds could potentially be factored in as "wastage" of matrimonial assets, affecting the property division.

Whilst the infidelity in itself is not a relevant factor to be considered, the Family Law Act sets out a framework to ensure the court has regard to the complete financial circumstances of the parties, prior to determining any outcome.

Whether you’ve recently found out that your spouse has had an affair and you’re considering a separation, or you are the partner who cheated on their spouse, you can discuss your situation and obtain legal advice from our experienced divorce lawyers. Our team is highly experienced in all aspects of divorce and separation. We can answer questions relating to your unique specific circumstances and ensure you understand your options and obligations.

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