Property settlement is the process of dividing assets and liabilities between two people after a relationship ends. It applies to both married couples and de facto partners, but different rules and time limits apply to each. Understanding the basics — and getting advice early — can make a significant difference to your outcome.
What Is Included in a Property Settlement?
Property settlement covers all assets and liabilities of both parties, regardless of whose name they are in. This includes:
- Real estate (family home, investment properties)
- Bank accounts, savings, and investments
- Superannuation (which can be split between parties)
- Businesses and business interests
- Vehicles, personal property, and household contents
- Debts, mortgages, and other liabilities
The starting point is identifying everything — on both sides — and assigning a value to it.
How Does the Court Decide?
The Family Law Act sets out a four-step process that courts use to assess property settlements. We use this same process to advise clients on their likely range of outcomes:
- Identify and value the asset pool — everything owned and owed by both parties.
- Assess contributions — both financial (income, inheritance, initial assets) and non-financial (homemaking, parenting, supporting the other party's career).
- Consider future needs — factors including age, health, income capacity, care of children, and financial resources each party will have going forward.
- Determine a just and equitable outcome — taking all of the above into account.
It is important to understand that there is no automatic 50/50 split. Every case is assessed on its own facts.
Time Limits — This Is Critical
Strict time limits apply to property settlement, and missing them can mean losing important rights:
- Married couples: Property settlement proceedings must be commenced within 12 months of the divorce becoming final.
- De facto couples: Property settlement proceedings must be commenced within 2 years of the relationship ending.
After these periods, you need the court's permission to proceed — which is not guaranteed and can be costly. Do not delay getting advice.
Do You Have to Go to Court?
No. Most property settlements are resolved by agreement between the parties — through negotiation directly, or with the assistance of lawyers, mediation, or Family Dispute Resolution. Once an agreement is reached, it can be formalised through consent orders, which are approved by the court without the need for a hearing.
Formalising your agreement through consent orders is important — without it, informal arrangements can be reopened later, even years down the track.
What About Superannuation?
Superannuation can be split between parties as part of a property settlement. This is done through a "superannuation splitting order" — either by consent or by court order. The amount split does not become immediately accessible — it remains in superannuation until the receiving party reaches retirement age.
Binding Financial Agreements
Parties can also formalise their property settlement through a Binding Financial Agreement (BFA) instead of consent orders. BFAs do not require court approval but must comply with strict legal requirements to be enforceable. Both parties must receive independent legal advice before signing.
Getting Advice Early Makes a Difference
Property settlement is one of the most financially significant matters many people will face. Early advice — before major decisions are made or assets are moved — gives you the best chance of protecting your interests. At James Papas Solicitors, your first consultation is free and confidential. Shanthi Anandarajah conducts consultations in English and Tamil.
Need legal advice? James Papas Solicitors offers free first consultations for all Family Law matters. Our offices are in Parramatta and we serve all of Western Sydney. Learn more about our Family Law services → or contact us today.