Question 1

Are there time limits for property settlement?

Accepted Answer

Yes there are, which is why it's a good idea to get advice about property settlement from a family lawyer as early as possible, as there can be multiple steps involved that take time to organise. There are time limits for initiating a property settlement in Australia for both married and de facto relationships. De facto couples have two years from the date of separation to begin property settlement, and married couples have one year from the date of divorce. If you do not apply within these timelines, you will need to apply for special consideration for your settlement to go ahead. It may not be granted, which would mean you are unable to apply for property settlement. Many people start the process early on, ensuring that they can finalise things without lengthy delays, and move forward with certainty about their financial position.

Question 2

How do we decide who gets what after a relationship ends?

Accepted Answer

When a relationship ends, working out who keeps what can be challenging. Some separating couples are able to discuss this and come to an arrangement that works for them. Others may need mediation, or lawyers to assist with negotiations, and sometimes, matters end up in court to be decided. There are multiple factors that are considered for property settlement in Australia, which are set out in section 79 of the Family Law Act 1975 (Cth) for married couples, and section 90SM for de facto relationships. It's not a clear formula, nor does it give an exact calculation to split assets - rather, it's a number of guidelines to weigh up what is 'just and equitable' after a relationship ends. It's a good idea to get early advice from a family lawyer about possible obligations and entitlements. They can help you to assess what is a fair and reasonable split in your circumstances.

Question 3

What happens to our debts during property settlement?

Accepted Answer

Debts from both people in the relationship are counted in the overall property pool. They are not automatically split or assigned to the person who accrued them, rather, assessed as part of the bigger picture. The court will look at who benefitted from them, and joint debts are generally shared - but not always equally. If either party has been deceptive, or has hidden debts, such as gambling debts, the court may assess those debts separately.

Question 4

What do I need to do to start a property settlement after separation?

Accepted Answer

The first steps to starting a property settlement are often talking with a property settlement lawyer, discussing financial matters with your former partner and starting to gather financial documents, such as income history and valuations of shared assets. You may choose to organise mediation to discuss things, or have your lawyer contact the other party to initiate discussions. Collaborative law is another option which can be an excellent avenue for separating couples who are willing to work together. This process involves lawyers and other professionals such as accountants to help couples reach an agreement and formalise it without needing to go to court.

Question 5

What steps are involved with property settlement?

Accepted Answer

Property settlement usually begins with discussions, and then moves to financial disclosure, where both parties share a full picture of their financial situation. Assets and liabilities are calculated to see what is in the property pool. Valuations may be required at this stage, or even third party assessment by a forensic accountant if either party is not forthcoming about their financial position. Once the property pool has been correctly assessed, it will be divided in line with any agreement the separating couple has made; or divided based on the guidelines set out in the Family Law Act 1975. It's important to be aware that Family Law amendments made in 2025 have also changed how some aspects of property settlement are handled, including considerations regarding family violence, economic and financial abuse, material wastage, liabilities and, where relevant, how pets are viewed in family law matters. Please get in touch if you have any questions about how these changes may influence your property matter.

Question 6

How do I organise financial arrangements early in separation?

Accepted Answer

It's possible to start organising things for property settlement pre-separating, which a family lawyer can help you with. Some people may be able to make temporary arrangements in the early stages, such as who covers the mortgage or pays bills, and others may need to seek interim orders for financial support or to decide on living arrangements early on, allowing security while the full property settlement process is finalised. Interim orders can be applied for if either party needs spousal or de facto maintenance, injunctions, exclusive occupation, urgent financial orders or preservation of assets orders made while a final property settlement is determined.

Property Settlement

Practical advice to protect your financial future