How Is Property Divided After Separation or Divorce in Australia?

How Property Is Divided After Separation

When a relationship ends in Australia, courts divide property under the Family Law Act 1975 using a four-step process. This applies to both married couples and de facto couples.

Step 1: Identify and Value the Asset Pool

Everything the couple owns and owes — real estate, bank accounts, super, vehicles, business interests, debts. Property is generally valued at the time of the hearing.

Step 2: Assess Contributions

• Financial contributions: Income earned, assets brought in, inheritances
• Non-financial contributions: Childcare, homemaking, supporting a partner's career
• Post-separation contributions: How each party managed assets after separating

Non-financial contributions — raising children full-time — are weighted equally to financial ones.

Step 3: Consider Future Needs

• Age and health of each party
• Whether one party has primary care of children
• Income-earning capacity (including time out of work for childcare)

This often results in the primary carer receiving a larger share.

Step 4: Just and Equitable

There is no automatic 50/50 split in Australian law.

Superannuation Splitting

Superannuation can be split and transferred to the other party's fund via a superannuation splitting order. It does not affect preservation rules.

Time Limits

• Married couples: Apply within 12 months of the divorce order taking effect
• De facto couples: Apply within 2 years of separation

How to Formalise a Settlement

• Consent orders: Filed with the Family Court; legally binding once approved
• Binding financial agreement (BFA): Private contract with independent legal advice; no court needed

Key Points

• No automatic 50/50 split
• Non-financial contributions count equally
• Superannuation is part of the pool
• Time limits: 12 months after divorce (married), 2 years after separation (de facto)