Background

The new Property Policy moves away from the traditional approach to property to a policy which is evidence-based and meets the needs of some of our most disadvantaged clients. The policy focuses on the value of the pool of assets in dispute rather than the type of asset, which has historically been limited to the former matrimonial home. The ‘pool of assets’ approach for grants of aid will align the ERA and grants policies for property settlement proceedings. 

The main changes to the property policy for grants of aid are:

• A ‘pool of assets’ approach with the threshold set at $850,000
• Increasing the lower limit from $20,000 to $40,000
• Removing the requirement for an applicant to be retaining their home
• Targeting a limited cohort of applicants that research indicates are the most economically vulnerable and at risk when it comes to post-separation poverty, and includes applicants who:
  • are 55 years of age or older, or
  • have disclosed experience of domestic or family violence, or have a disability, that materially affects their ability to negotiate a reasonable settlement
• Final contributions will apply to any amount recovered over $30,000

The threshold for the pool of assets for ERA is also $850,000. There has been a small change to the eligible cohort for ERA which includes applicants where ‘domestic or family violence has been a factor in the applicant’s relationship with the other party’.

We have amended the Means Test, so where an applicant has applied for property settlement proceedings the pool of assets in dispute to a maximum of $850,000 will be excluded when assessing means. The Board has also approved a policy for enforcement orders in property matters.

Mediation Model for property matters

As part of the changes, we are introducing a new model for early intervention mediations. Property mediations can be conducted over two stages with preparation paid at each stage. Where there is also parenting matters, the mediation for parenting will be conducted at a separate mediation. 

Start date

The changes apply to applications determined on and after 11 March 2024.

Further information

Contact the Client Eligibility Unit via email: T-CEU@legalaid.nsw.gov.au.