Going through a separation is never easy. Emotions often run high and the uncertainty of ‘what happens next’ can feel overwhelming. But understanding your legal rights early can make the process clearer and give you the confidence to move forward.
What is a property settlement?
In Australia, a property settlement is not simply about dividing assets down the middle. The goal is to achieve a fair and equitable outcome that reflects both parties’ unique circumstances. This covers all assets and liabilities, such as:
- Real estate (homes, investment properties, land) Superannuation
- Vehicles, household contents and personal belongings
- Businesses, companies or trusts
- Debts, loans, credit cards or tax liabilities.
The 4-step process the Court applies
If an agreement cannot be reached, the Court follows a structured process to determine a fair outcome:
Identify and value the property pool
All assets and debts of both parties are identified and valued. This includes jointly owned property as well as assets held in one person’s name.
Assess contributions
Both financial (income, property, inheritances) and non-financial (homemaking, parenting, caring for children) contributions are considered.
Consider future needs
Factors such as age, health, income-earning capacity and who will care for children are taken into account.
Ensure the outcome is just and equitable
Ultimately, the Court steps back and considers whether the proposed division is fair in all the circumstances.
Common myths about property settlements
Myth: Everything is split 50/50.
The reality is that outcomes vary greatly depending on contributions, needs, and fairness. For example, a primary caregiver of children may be entitled to a greater share to reflect their ongoing responsibilities.
Myth: Superannuation can’t be divided.
Super is treated like any other asset and can be “split” between parties by court order or agreement.
Myth: Property must be sold.
In some cases, one party may keep the home or another asset, with adjustments made elsewhere in the settlement.
Time limits to be aware of
Married couples: Applications must generally be made within 12 months of divorce.
De facto couples: Applications must be made within 2 years of separation.
Missing these deadlines can severely limit your options, so it’s crucial to seek advice early.
Why legal advice matters
No two separations are the same. Independent legal advice can:
- Help you understand your entitlements and obligations
- Assist in negotiations with your former partner
- Ensure agreements are legally binding and enforceable
- Protect your financial future and your children’s wellbeing.
Our advice
Don’t leave your future to chance or assumption. Property settlements are complex and small oversights can have long-term consequences.
If you’re going through a separation, contact us on 02 4350 3333 to understand your rights and take the first step toward a fair settlement.
