Property settlement is the process of dividing assets, debts and superannuation after separation. It is legally separate from divorce and from arrangements for children, and follows its own structured approach.
How property settlement is assessed
Identifying and valuing the asset pool
The first step is identifying everything owned by either party, individually or together — real estate, superannuation, savings, vehicles, businesses and debts — and establishing current values.
Assessing contributions
The court then looks at each party’s contributions throughout the relationship, which can be financial (such as income and assets brought into the relationship), non-financial (such as renovations or unpaid work in a family business), or as a homemaker and parent.
Assessing future needs
Factors such as age, health, income-earning capacity, and care of children can justify an adjustment in one party’s favour, on top of the contribution-based assessment.
Checking the outcome is just and equitable
Finally, the proposed division is checked against whether it is just and equitable in all the circumstances, rather than simply the arithmetic result of the earlier steps.
Timing and de facto relationships
Property settlement can be dealt with before your divorce is finalised, and often should be, since a strict twelve-month time limit applies to court applications after a divorce order takes effect. De facto couples are covered by broadly the same framework, with a two-year time limit running from separation instead.
Formalising the outcome
Once you and your former partner agree on a division, it can be formalised through consent orders or a binding financial agreement, both of which give you legal certainty and finality that an informal agreement does not.
Frequently asked questions
Do we need to be divorced before sorting out property?
No. Property settlement can be dealt with before or after divorce, though strict time limits apply once a divorce order takes effect.
Is superannuation included in a property settlement?
Yes, superannuation is treated as property and can be split between parties as part of the overall settlement.
Does it matter who paid for what during the relationship?
Financial contributions are one factor, but non-financial contributions and homemaking or parenting roles are also weighed, alongside each party’s future needs.
What if we were never married?
De facto couples are generally covered by the same framework for property settlement, subject to eligibility requirements and a different time limit running from separation.
How is a property settlement formalised so it is final?
Through consent orders or a binding financial agreement, both of which give the outcome legal force and finality.
Property division sits alongside parenting, support and the divorce itself. Family Lawyers Adelaide explains how those processes interact and where the time limits bite.
Contact WPI Lawyers to discuss your property settlement.