Property settlement after separation: how it works

After a separation, dividing assets and debts is often the biggest issue. This guide explains how property settlement works in Australia, the approach the courts take, and your options for finalising it.

Who it applies to

Property settlement applies to married couples and to de facto couples, including same-sex couples. The law is the Family Law Act 1975. The general approach is the same whether you were married or in a de facto relationship.

The approach the courts use

Courts in Australia have long worked through a structured approach to dividing property. The Family Law Amendment Act 2024, which commenced on 10 June 2025, wrote these principles into the Family Law Act itself. The approach has four broad stages.

1. Identify and value the asset pool. This covers everything you each own and owe, including the home, savings, superannuation, businesses, and debts.

2. Assess contributions. This looks at what each person contributed, financially and as a homemaker and parent, during and after the relationship.

3. Assess future needs. This considers factors like age, health, earning capacity, and the care of children.

4. Check that the result is just and equitable. The Court stands back and asks whether the proposed division is fair in all the circumstances.

The 2024 changes also require the economic effect of family violence to be considered in a property settlement, and they changed how companion animals are dealt with.

Time limits

Time limits matter. For married couples, you generally have 12 months from the date your divorce becomes final to apply for a property settlement. For de facto couples, you generally have 2 years from the date the relationship ended.

You can apply out of time only with the Court's permission, which is not guaranteed. If you are close to a deadline, get advice promptly.

Your options for finalising it

You do not have to go to court to divide property. There are several ways to finalise a settlement.

You can reach an informal agreement, though an informal agreement is not binding and offers little protection. You can formalise an agreement through consent orders, which the Court approves and which are binding and enforceable. You can enter a binding financial agreement, which is a private contract that sets out the division. If you cannot agree, you can apply to the Court for orders.

Consent orders are a common and sensible path where you can agree. They give you certainty and can also deal with duty and other consequences cleanly.

Superannuation

Superannuation is treated as property that can be split between you. Splitting super has its own rules and forms, and the value of a fund is not always obvious, so take advice before you agree to a split.

Frequently asked questions

Is property split 50/50? No. There is no automatic 50/50 rule. The division depends on contributions, future needs, and what is just and equitable.

Does property settlement apply to de facto couples? Yes. The same general approach applies, with a different time limit of 2 years from the end of the relationship.

How long do I have to apply? Married couples generally have 12 months from the divorce becoming final. De facto couples generally have 2 years from separation.

Do I have to go to court? Not if you can agree. Consent orders or a binding financial agreement can finalise things without a contested hearing.

Keep reading

• Family law
• Separation and divorce in Australia: the first steps
• Binding financial agreements (prenups) explained

This article contains general information only and is not legal advice. For advice about your situation, please contact us. Liability limited by a scheme approved under Professional Standards Legislation.