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Navigating Compensation from Victims of Crime in Domestic Violence Cases: Untangling its Impact on Property Settlement
Anonymous Member Question: 
Compensation from Victims of Crime due to assault resulted from domestic violence of Ex and OP - does it need to go in the property pool for financial settlement? That shouldn’t be the case as OP would be benefiting for doing the assault. Please correct me if I am wrong here. How should the compensation amount be managed? Should I open a separate bank account to keep things separate for its clarity in financial disclosure. I doubt it will be much, but I am claiming loss of income, medical out of pocket fees and possibly will be eligible for special financial assistance.
FLAST-AI Answer:

Based on the information provided, it appears that the query relates to how compensation received from a Victims of Crime claim due to assault resulting from domestic violence should be treated in the context of financial settlement during a separation or divorce. This is indeed a complex matter as it raises issues about property division, family law, and victims' rights.

While I couldn't find an exact case that discusses this issue, there are two cases which may provide some guidance on how such matters may be treated under Australian law.

The first case is Stanford v Stanford [2012] HCA 52. In this case, the High Court of Australia emphasised that in property settlement matters, it is necessary to establish that it is "just and equitable" to make an order altering property interests. The relevance of this case lies in its principle that any alteration of property interests must be fair and justifiable under the circumstances. In your situation, you could potentially argue that including your compensation in the shared property pool would not be "just and equitable" given that it was awarded due to harm caused by your ex-partner.

The second relevant case is Kennon v Kennon [1997] FamCA 27. In this case, the Family Court considered the impact of domestic violence on contributions made during the marriage. The court held that where one party's violent conduct has had a significant adverse impact on the other party's contributions, this can be taken into account in adjusting property interests. While this case does not directly address your situation involving compensation from a Victims of Crime claim, it does suggest that courts are willing to consider domestic violence as a relevant factor in financial settlements.

In terms of managing your compensation amount, opening a separate bank account could be useful for clarity and ease of financial disclosure. However, it's important to understand that simply keeping these funds separate may not necessarily protect them from being considered in a property settlement.
Cases that could provide some context:
Appeal dismissed despite error in law in primary judgment (flast.com.au)
Wife Applies for Property Adjustment (flast.com.au)
Male Gold-Digger who contributed less than half of what he would have been obliged to pay in rent, wants 25% of the Property (flast.com.au)

I recommend seeking specific legal advice based on your individual circumstances. This analysis has been extrapolated from existing case law and should not be relied upon as definitive legal advice.

This answer is FLAST-AI assisted, consult with a lawyer before using this information.

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