One of the most common questions after separation is "Who gets what?". Many people assume assets are split down the middle. In reality, Australian family law requires a careful, case-by-case assessment of what is fair. Reforms that commenced on 10 June 2025 wrote the steps the court follows directly into the Family Law Act 1975.
Step 1: Identify and value the property pool
The pool includes everything either of you owns or owes, wherever it is and whenever it was acquired. That covers the family home, other real estate, bank accounts, vehicles, businesses, shares, cryptocurrency and debts. Superannuation is treated as property and can be split.
Both parties have a continuing duty to give full and frank disclosure of their financial circumstances. Hiding assets can lead to serious consequences, including orders being set aside.
Step 2: Assess contributions
The court considers financial contributions (income, savings, property brought into the relationship, gifts and inheritances), non-financial contributions (such as renovations), and contributions as a homemaker and parent. Caring for children and running the home are valued, not treated as less important than earning income.
The court must also consider the economic effect of family violence on a party's ability to make contributions.
Step 3: Consider current and future circumstances
Next, the court looks at each person's future needs, including age and health, income and earning capacity, care of children, and the housing needs of children. The effect of family violence on a person's current and future circumstances is also relevant.
Step 4: Is the outcome just and equitable?
Finally, the court steps back and asks whether the overall result is just and equitable. The court can only make an order if it is satisfied that it is just and equitable to do so in the first place.
Making your agreement binding
- Consent orders: you agree on the division and ask the court to make orders without a hearing. This is the most common option.
- Binding financial agreement: a private contract that can be made before, during or after a relationship. Each party must get independent legal advice for it to be binding.
- Informal agreement: not legally binding. Either party can still make a claim later, and you may miss out on stamp duty exemptions when transferring property.
Time limits
Married couples must apply within 12 months of their divorce taking effect. De facto couples must apply within two years of separation. Missing these deadlines means asking the court for permission, which is not guaranteed.
How we can help
We help you identify the full property pool, value assets properly, negotiate a fair division and document it so it is final and binding. If agreement is not possible, we prepare and run your case in court.
