When a relationship ends — whether a marriage or a de facto partnership — the law requires a fair division of the assets and liabilities accumulated during the relationship. This process is known as property settlement, and it is governed by the Family Law Act 1975.

The first step is identifying the asset pool. This includes everything owned by both parties — real estate, superannuation, vehicles, bank accounts, investments, and business interests — as well as all liabilities such as mortgages, loans, and credit card debts. It does not matter whose name an asset is in. If it was acquired during the relationship, it is generally included in the pool.

The second step is assessing contributions. The court considers both financial contributions — who earned the income, who paid the mortgage — and non-financial contributions, such as caring for children and maintaining the home. Both types of contribution are given significant weight.

The third step is considering future needs. The court looks at each party's future circumstances — their age, health, earning capacity, and care of children — and may adjust the split accordingly.

The fourth step is determining what is just and equitable. The court must be satisfied that the overall outcome is fair to both parties.

It is important to note that you have strict time limits to formalise a property settlement — 12 months after a divorce is finalised, or two years after the end of a de facto relationship. Missing these deadlines can affect your rights significantly.

We strongly recommend seeking legal advice as early as possible after separation. Contact Barrister's family law team for a free initial consultation.