Divorce impacts both your emotions and your finances
Whether you have been married for two years or twenty, separating one financial life into two can be difficult. The legal divorce application is only one part of the process. Property, superannuation, debts, maintenance and ongoing financial commitments are dealt with separately.
1. Divorce filing fees and legal costs
The standard Court fee for an Application for Divorce is currently $1,170. From 1 July 2026, the reduced divorce filing fee is $390 for eligible applicants. Court fees can change, generally through annual indexation.
If you use a lawyer, your total cost will depend on the work required. A straightforward divorce application may involve limited legal work, while service problems, separation under one roof or a disputed application can add complexity.
2. Property settlement is separate from divorce
A divorce order ends the marriage. It does not automatically divide your financial affairs.
A property settlement can involve:
- the family home and investment properties;
- bank accounts, shares and other investments;
- business and company interests;
- trust interests and other financial resources where relevant;
- vehicles and other significant property;
- superannuation; and
- mortgages, credit cards, tax liabilities and other debts.
There is no automatic 50/50 division. The Court applies the Family Law Act to the parties' circumstances, including their property and liabilities, contributions, current and future circumstances, and whether the proposed outcome is just and equitable.
Melissa reduced her paid employment for many years while caring for the children and managing the household, while Jacob focused on growing a business. Homemaking and parenting contributions can be taken into account alongside direct financial contributions when a property settlement is assessed.
3. The property laws changed in June 2025
Significant amendments to the Family Law Act commenced on 10 June 2025. The Act now sets out the property decision-making framework more expressly and includes several issues that are particularly important in financial cases.
The economic effect of family violence can be relevant when assessing contributions and a party's current and future circumstances.
The Act expressly recognises the duty to provide full and frank financial disclosure in property and financial matters.
Economic or financial abuse is expressly recognised as a form of family violence under the Family Law Act.
The Act now contains specific considerations for deciding ownership of a family pet in property proceedings.
4. Spousal maintenance
Spousal maintenance is different from child support and from property settlement.
In broad terms, maintenance may arise where one former spouse is unable to adequately support themselves and the other has the capacity to provide financial support. The Court considers a range of circumstances, including income, expenses, health, caring responsibilities and earning capacity.
Following separation, one spouse may need temporary financial support while returning to work or retraining. Whether maintenance is payable, and for how long, depends on the individual circumstances rather than a fixed formula.
5. Superannuation splitting
Superannuation is treated as property for family-law purposes, although it remains subject to superannuation law and generally cannot simply be withdrawn as cash because a relationship has ended.
A superannuation interest can be split through formal family-law arrangements, including consent orders, a Court order or an eligible financial agreement.
Before deciding on a split, parties often need accurate information about the value and type of the superannuation interest. Some funds, particularly defined-benefit or self-managed funds, may require more specialised valuation or advice.
6. Debts, mortgages and joint accounts
Separation does not automatically remove either person's liability to a bank or other lender. If a mortgage, loan or credit facility remains in joint names, the lender's contractual rights generally continue until the facility is formally changed or refinanced.
Common issues to review early include:
- joint bank accounts and redraw facilities;
- credit cards and personal loans;
- mortgages and investment loans;
- business guarantees;
- tax debts; and
- ongoing direct debits and household expenses.
7. Financial disclosure matters
Property negotiations depend on both parties having an accurate picture of the financial position. Financial disclosure can include bank records, tax returns, payslips, company and trust documents, superannuation information, loan statements and documents showing ownership or control of assets.
Failing to disclose relevant financial information can cause delay, increase legal costs and potentially affect the orders made by the Court.
8. Tax, capital gains and transaction costs
Transferring or selling assets after separation can have tax, capital-gains, stamp-duty and transaction-cost consequences. Family-law orders can sometimes interact with tax concessions or rollover provisions, but the outcome depends on the asset and the transaction.
For significant property, business or investment assets, family-law advice should often be considered alongside accounting or tax advice before the settlement is finalised.
9. Do not lose sight of the time limit
Generally 12 months after your divorce becomes final
If you were married, applications for property settlement or spousal maintenance generally need to be commenced within 12 months after the divorce order takes effect. Starting negotiations does not automatically extend that limitation period. If the deadline is missed, permission from the Court may be required.
10. Planning your financial life after separation
A property settlement is not only about dividing what exists today. It can affect housing, borrowing capacity, retirement planning, insurance, estate planning and the amount of cash available to establish two separate households.
Useful steps can include preparing a realistic post-separation budget, obtaining current valuations, understanding your superannuation position, checking credit facilities and reviewing your will, beneficiaries and other estate-planning documents.
The aim is an informed financial settlement
Divorce can put pressure on finances at exactly the time people are also dealing with major personal change. Good information, complete financial records and early professional advice where necessary can make the process more manageable and help avoid decisions that are difficult to reverse later.