Key takeaway: Property settlement follows a four-step process under the Family Law Act: identify the asset pool, assess contributions, weigh future needs, and check the result is just and equitable. Both parties must fully disclose their finances. Married couples generally have 12 months after divorce to apply; de facto couples have two years from separation. Mediation is the fastest route to a fair, binding outcome.
What is a property settlement?
A property settlement is the formal division of everything you and your former partner own and owe after separating. It's separate from the divorce itself — you don't have to be divorced (or even married) to do one. It applies to married and de facto couples alike, and covers the whole financial picture, not just the family home.
The governing law is the Family Law Act 1975, which sets out how property is to be divided. Crucially, it does not prescribe a fixed split.
Facing a property settlement? Get a clear, honest view of where you stand in a free initial consultation.
Book a free consultation →The four-step process
Courts and mediators apply the same four-step framework:
| Step | What it involves |
|---|---|
| 1. Identify & value the asset pool | List all assets, debts and superannuation, jointly and individually held. |
| 2. Assess contributions | Financial and non-financial contributions across the whole relationship. |
| 3. Consider future needs | Earning capacity, age, health, and care of children. |
| 4. Just and equitable | Step back and confirm the overall division is genuinely fair. |
This is the same framework explained in our guide to what you're entitled to in a separation.
What's in the asset pool?
- The family home and any other real estate
- Superannuation (treated as property and able to be split)
- Savings, shares, and investments
- Vehicles, furniture and valuables
- Business interests, companies and trusts
- Debts and liabilities, which reduce the net pool
Even assets held in one name alone, or acquired after separation, can form part of the pool depending on the circumstances.
The duty of disclosure
Both parties have a strict duty of full and frank financial disclosure, set out by the FCFCOA duty of disclosure. That means providing complete, honest information about income, assets, debts and financial resources. Hiding assets is taken seriously and can lead to penalties or a settlement being set aside. Mediation works best when disclosure is done thoroughly up front.
Superannuation splitting
Superannuation is treated as property under family law and can be split between partners. This is especially important where one partner has a much smaller balance because they reduced paid work to raise children. A super split is formalised through consent orders or a binding financial agreement. See how financial agreements work →
Worried something's being hidden, or unsure how super is split? We'll help you get full clarity.
Book a free consultation →Time limits that apply
- Married couples: generally 12 months from the date a divorce becomes final.
- De facto couples: generally two years from the date of separation.
Miss the limit and you may need the court's permission to proceed, which isn't guaranteed. Acting promptly — and using mediation to move quickly — protects your position. See de facto time limits →
How to settle without court
Most property settlements never need a judge. Property settlement mediation lets you and your former partner work through the four-step framework with a neutral mediator and reach a fair agreement — in weeks, privately, and at a fraction of litigation's cost. It keeps the decision in your hands rather than handing it to a court. Compare mediation and litigation →
Making it legally binding
Once you agree, formalise it — don't leave it informal. You can do this through consent orders (court-approved) or a binding financial agreement (a private contract). Either way, formalising closes off future claims and gives both parties certainty. Not sure which to choose? →