Property Settlement Made Simple

A property settlement is the process of dividing assets, liabilities and financial resources between separating couples. Before making a final Order the Court will need to consider that the agreement achieves a just and equitable outcome pursuant to the Family Law Act 1975 (Cth).

Not necessarily. Most property settlements are resolved without court involvement via negotiation, mediation, or consent orders. Court proceedings are usually an option of last resort if agreement cannot be reached.

Where possible, it’s best to seek legal advice before separation so you understand your rights and can make informed decisions prior to separating. If that’s not practical, you should obtain advice as soon as possible after separation to ensure you can protect your financial position and plan your next steps confidently.

The property pool can include real estate, superannuation, savings, shares, businesses, trusts, vehicles, personal property and debts such as mortgages, loans and credit cards. Everything owned by either or both parties is included.

The Family Law Act 1975 (Cth) outlines a five-step approach the Court uses to determine how property should be divided:

1️⃣ Threshold Question: Decide whether it is appropriate and “just and equitable” for the Court to adjust the parties’ legal interests in property.

2️⃣ Identify and Value the Property Pool: List and value all assets, liabilities and superannuation of both parties, including those held jointly, individually, or with third parties.

3️⃣ Assess Contributions: Consider each party’s financial, non-financial and homemaker contributions throughout the relationship — from its beginning, during the relationship, and after separation.

4️⃣ Consider Current and Future Financial Circumstances: Take into account each party’s health, income, earning capacity, age, and care of children, to determine whether an adjustment is appropriate.

5️⃣ Ensure Justice and Equity: Finally, assess whether the proposed overall outcome is fair and equitable in all the circumstances.

For marriages, you must finalise property settlement and spousal maintenance proceedings within 12 months of your divorce finalising. For de facto relationships, you must finalise property settlement and maintenance proceedings within 2 years of the date of separation.

If you:

1. Fail to bring an Application to Court seeking contested orders prior to the time limitation expiring; or
2. Fail to properly formalise any agreement reached before the time limitation expires (by way of an Application for Consent Orders or Financial Agreement); then

it may mean that any proceedings to be filed in the Federal Circuit and Family Court of Australia could become statute barred and you may lose your right to bring such an Application. If your time limitation expires, you will need to satisfy the Court as to why leave should be granted to allow a property settlement to occur out of time.

You can formalise your agreement via an Application to the Court seeking a final property settlement Order or by entering into a Financial Agreement. Once properly formalised, these documents should ensure your settlement is legally enforceable. They also provide finality for both parties.

Yes. Each party has a legal duty to provide full and frank financial disclosure to the other. This includes, but is not limited to, bank statements, tax returns, superannuation details, payslips, company documents, property valuations and other relevant documents

If your former partner refuses to properly engage in the process or provide disclosure, our team can help you take steps to progress the matter, which may include initiating court proceedings where necessary.

We guide you through the process with clear advice and a focus on resolution. Our goal is to help you understand your options, protect your financial interests, and achieve a practical outcome that allows you to move forward with confidence.