Property Division
Written in plain language for general understanding. This is educational content, not legal advice. Based on Commonwealth Acts of Parliament, federal regulations, and official government guidance.
What is this right?
When a marriage or de facto relationship ends, either party can apply to the court for a property settlement under the Family Law Act 1975 (s 79 for married couples, s 90SM for de facto couples). There is no automatic 50/50 split in Australia.
The court follows a four-step process: (1) identify and value all assets, liabilities, and financial resources of both parties; (2) assess each party's financial contributions (income, assets brought into the relationship, inheritances) and non-financial contributions (homemaking, parenting, renovations); (3) consider future needs such as age, health, earning capacity, care of children, and the length of the relationship (s 75(2) factors); (4) check that the overall result is just and equitable.
Superannuation (retirement savings) is treated as property and can be split by a superannuation splitting order (Part VIIIB). Married couples must file property claims within 12 months of divorce becoming final. De facto couples must file within two years of separation.
When does it apply?
This applies to:
- Married couples who are separating or have divorced — you must apply within 12 months of divorce.
- De facto couples (including same-sex couples) who have separated — you must apply within two years of separation.
- For de facto couples to access federal family law, the relationship must have lasted at least two years, or there must be a child of the relationship, or one party made substantial contributions and failure to make an order would cause serious injustice (s 90SB).
What should you do?
- Get a full picture of all assets and debts — bank accounts, property, superannuation, businesses, vehicles, credit cards, and loans.
- Get formal valuations of real estate, businesses, and superannuation where needed.
- Try to reach agreement through negotiation or mediation — you can formalise it with consent orders or a binding financial agreement (BFA).
- File within time limits — 12 months after divorce for married couples, two years after separation for de facto couples.
- Disclose everything — the duty of full and frank disclosure is ongoing throughout the process.
What should you NOT do?
- Don't hide, dispose of, or dissipate assets — the court can reverse transactions and impose penalties.
- Don't assume a 50/50 split — the court considers contributions and future needs, which often results in an unequal division.
- Don't miss the deadline — after the time limit expires, you need special leave from the court to proceed (s 44(4)).
- Don't forget superannuation — it is often the second-largest asset and can be split separately from other property.
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