The division of assets in divorce – or property settlement after separation for de facto couples – can be a complex issue governed both by Australian family law and the individual circumstances of each case. It is also one that needs to be settled following a time limit; this is generally one year for a divorce property settlement or two years for a de facto property settlement.

Therefore, it is important to get legal advice from property settlement lawyers as soon as possible following a separation, or even before a divorce is finalised. Our experts in family law and property settlement will be able to provide advice and representation both in court and through other avenues.

What is considered property?  

Property settlement relates to how assets are split in a divorce or separation – which raises the question of what is actually considered property under family law. In a property settlement agreement, property refers to all assets, liabilities, and financial and non-financial resources held by you and your former partner. This includes property held jointly, in your own names, and also assets that are held on your behalf.

In divorce property settlement, assets include real estate, money in the bank, passive and non-passive income, investments, furniture, vehicles, businesses, insurance policies, and for the purposes of this area of family law, superannuation. Liabilities include mortgages, debt, rent, bills, and certain specific expenses.

However, this is not an exhaustive list and each case is decided on its own merits, which is why it is important to seek legal counsel from experienced property settlement lawyers to determine the division of assets in divorce.

How are assets divided in divorce?

Under Australian law, the division of assets in divorce is not automatically split 50/50 as in some other countries. Instead, the Family Law Act establishes a four-stage test to determine how assets are split in a divorce:

1. Valuation of assets
2. Considering the contributions of each party
3. Considering the future needs of the parties
4. Weighing up the fairness of the practical outcome.

These general principles can be broken down into various determining factors such as the length of the marriage, any pre-nuptial agreements, future income potential, the role of caring for children and dependents, and so on.

Reaching the property settlement

If the division of assets can be agreed upon, then our property settlement lawyers can formalise the terms of the property settlement agreement under a binding financial agreement or consent order. This applies to both divorce property settlements and de facto property settlements.

Otherwise, our property settlement lawyers will be able to advise you on the next best course of action, such as commencing mediation or bringing the case to the family court.

No matter the circumstances of your individual case, our expert team is ready to find the best course of action for you, so speak to us as soon as possible to see how we can help you.