When a relationship ends, dividing property, money, debts and superannuation can feel overwhelming. Australian family law aims for a just and equitable result, which does not necessarily mean an equal split.
What counts as property?
Property is broader than the family home. It may include real estate, bank balances, investments, vehicles, business interests, inheritances, superannuation and other valuable assets. The overall financial picture also includes debts and liabilities such as mortgages, credit cards, personal loans and tax obligations.
It is important to establish who legally owns each asset, what it is worth and what is owed. A jointly owned house may have a large market value but comparatively little equity once the mortgage is deducted.
See our explanation of property settlement principles and financial disclosure.
Who can apply, and what are the time limits?
Married and eligible de facto partners may seek financial orders after separation. There is usually no need to wait until the divorce is finalised to deal with property.
12 months
Generally, you must commence property proceedings within 12 months after a divorce order becomes final.
2 years
Generally, you must commence proceedings within two years after separation. Eligibility requirements also apply.
If a deadline has passed, an application for permission to proceed out of time may be possible in limited circumstances, but it is not automatic. Obtain legal advice promptly. See relationship information.
How does the property settlement process work?
Under the framework applying from 10 June 2025, the court considers the parties' property and liabilities, their contributions, their current and future circumstances, and whether an adjustment is just and equitable. These considerations are often explained as four connected stages rather than a guaranteed formula.
Identify the assets and liabilities
Gather accurate information about property, superannuation, investments, businesses and debts. Both parties have financial disclosure obligations.
Assess contributions
Consider financial contributions, non-financial work, homemaking, parenting and contributions before, during and after the relationship. The effect of family violence on contributions may be relevant.
Consider current and future circumstances
Factors may include care of children, age, health, earning capacity, financial resources and the economic impact of family violence.
Decide what is just and equitable
The outcome is not automatically equal. The court considers whether altering interests is appropriate and what final orders are just and equitable in the circumstances.
Read more about the four-step property settlement process, financial contributions and future circumstances.
A practical property settlement example
Michelle and Greg — 12 years together
Michelle earned more income while Greg spent substantial time caring for their children. Their settlement discussions considered both financial and parenting contributions, their superannuation and housing needs.
They agreed that Michelle would retain the home subject to an appropriate financial adjustment, while Greg would receive other assets, including a larger share of superannuation. The numbers would need to be checked against the total assets, debts and each party's circumstances before formalising the agreement.
This is a simplified illustration, not a prediction of the percentage a court would award.
Do you have to go to court?
No. Many people reach agreement through direct negotiation, lawyer-assisted discussions or mediation. Reaching agreement is not the same as making it legally enforceable. Depending on your circumstances, the agreement may be formalised through court-approved consent orders or a compliant financial agreement.
Before signing, both people should understand the assets and debts, any superannuation splitting arrangements and the possible tax or transfer consequences. Independent legal advice is particularly important for financial agreements.
Explore the family law process and financial agreements.
What happens to the family home?
The house is often the most significant asset and can also carry emotional importance. Possible outcomes include one person buying out the other's interest, selling and dividing net proceeds, or allocating other assets to balance the proposed outcome.
The practical questions include mortgage refinancing, valuation, stamp duty and tax implications, any need for temporary housing and the children's living arrangements. Keeping a home may not be workable if the retaining partner cannot service its debt.
For more, read post-separation contributions and altering property interests.
What if only one person's name is on the title?
Title ownership matters when identifying legal interests, but it is not the only factor in a family law property settlement. Financial and non-financial contributions, care of children and the parties' circumstances can still be relevant.
Being named on the title does not automatically mean one person keeps the asset, and being absent from the title does not automatically exclude someone from an adjustment. The outcome depends on the whole matter.
What changed in June 2025?
Australia's property settlement laws changed on 10 June 2025. The legislation more clearly sets out the approach to property division, expressly recognises the economic effects of family violence where relevant, strengthens financial disclosure obligations and introduces specific rules about companion animals.
Financial abuse can be relevant. If you are concerned about coercive control, threats or financial restrictions, consider reading understanding family violence and seeking appropriate professional support.
The changes can apply to existing proceedings depending on when the final hearing commenced. A lawyer can explain how the law applies to your situation.
Before you negotiate: your preparation checklist
- List all bank accounts, property, investments, vehicles and business interests
- Collect loan balances, credit-card statements and tax liabilities
- Obtain current superannuation information and relevant valuations
- Keep records of financial and non-financial contributions
- Record parenting arrangements and each person's future financial needs
- Get advice before signing or transferring significant assets
Being organised can make negotiations more productive. Alan's Separation & Divorce System offers preparation tools designed to help you organise your information.
FREQUENT QUESTIONS
Property settlement FAQs
Is property always divided 50/50?+
No. There is no automatic equal split. Contributions, current and future circumstances, and what is just and equitable are considered.
Can we settle before our divorce is final?+
Yes. Property matters can generally be resolved following separation without waiting for a divorce order.
Is superannuation included?+
Superannuation can form part of the financial picture and may be split using appropriate orders or arrangements.
Do we need lawyers if we agree?+
You can negotiate directly, but independent advice can help you understand disclosure, enforceability, tax considerations and whether proposed terms protect your interests.
Can family violence affect property settlement?+
Yes. Since 10 June 2025, the Family Law Act expressly recognises economic effects of family violence in relevant property considerations.
General Australian family law information only, not personal legal advice. Legal requirements and outcomes depend on individual facts, and the court's approach is governed by the Family Law Act 1975 as amended.