There is no automatic 50/50 rule when a relationship ends. Instead, property settlement in Australia follows a structured process that looks at what each person contributed and what each person needs going forward, before checking that the overall result is fair.
The four-step process
1. Identify and value the asset pool
Everything owned by either party, individually or together, is identified and valued — real estate, superannuation, savings, vehicles, businesses and debts.
2. Assess contributions
Each party’s contributions are weighed, including financial contributions, non-financial contributions such as renovations or unpaid work in a family business, and contributions as a homemaker or parent.
3. Assess future needs
Factors such as age, health, income-earning capacity and ongoing care of children can justify adjusting the split further in one party’s favour.
4. Check the result is just and equitable
Finally, the proposed division is checked against whether it is fair overall, rather than simply following from the earlier steps mechanically.
Timing matters
Property settlement can be dealt with before or after divorce, but a strict twelve-month time limit applies to court applications once a divorce order takes effect (two years from separation for de facto couples). It is worth addressing property settlement well before that window closes, even if the process itself takes longer to finalise.
Making the outcome final
Once you and your former partner agree on a division, formalising it through consent orders or a binding financial agreement gives the outcome legal finality that an informal agreement does not.
Frequently asked questions
Is superannuation included?
Yes, superannuation is treated as property and can be split between parties as part of an overall settlement.
Do we need to be divorced first?
No, property settlement can proceed before or after divorce, though time limits apply once a divorce order takes effect.
See our page on Property Settlement Lawyers for more detail, or contact WPI Lawyers to discuss your situation.