How is a property settlement actually decided?
Australian family law follows a four-step approach to dividing property, and mediation works within exactly the same framework — so your agreement reflects what a court would likely consider fair:
- Identify the asset pool — everything you own and owe, together and separately: property, savings, superannuation, vehicles, businesses and debts.
- Assess contributions — financial contributions (income, assets brought in) and non-financial ones (homemaking, parenting, renovations).
- Consider future needs — earning capacity, age, health, and who cares for the children.
- Check it's just and equitable — that the overall split is fair in the circumstances.
In mediation, your mediator helps you work through each step openly, so the outcome is grounded in the same principles a judge would apply — but reached in days, not years. The same four-step approach is set out in the Family Law Act 1975.
Full and frank disclosure comes first
A fair settlement depends on both people putting all their cards on the table. Each of you has a duty of full and frank financial disclosure — bank statements, payslips, tax returns, superannuation statements, and details of any businesses or trusts. Mediation actually makes this easier: instead of months of lawyers' letters chasing documents, the mediator sets a clear, shared list up front so you both arrive with the same picture. Without honest disclosure, any agreement can later be set aside, so getting it right protects you.
What can be included in a property settlement?
- The family home and any investment properties
- Superannuation (which can be split between partners)
- Savings, shares and investments
- Vehicles, furniture and personal property
- Business interests and trusts
- Debts, mortgages and liabilities
How superannuation, businesses and trusts are treated
A property settlement is rarely just the house and the savings. The trickier assets are exactly where mediation earns its keep, because you can agree a sensible approach instead of paying lawyers to fight over valuations:
- Superannuation — treated as property and able to be split between partners, which often unlocks a fairer division without anyone having to sell the family home.
- Businesses and company interests — a business one or both of you built forms part of the pool; the question is its value and how to deal with it without crippling the business that pays the bills.
- Trusts and inheritances — these can be in or out of the pool depending on timing, control and how they were used during the relationship. They need careful, honest handling.
- Debts and liabilities — mortgages, loans and tax debts are shared too, and a good settlement allocates them as deliberately as it does the assets.
Contributions and future needs — the part people miss
A fair split isn't simply 50/50. The law weighs both what each of you put in — financial contributions, plus the non-financial ones like homemaking and parenting — and what each of you will need going forward: earning capacity, age, health, and who has the day-to-day care of the children. Two couples with identical asset pools can fairly settle on very different splits because of these factors. In mediation, your mediator helps you weigh them honestly, so the outcome reflects the same considerations a court would apply.
Property settlement time limits
There are deadlines, and missing them can cost you the right to a settlement — so this is one area where acting early genuinely matters. Mediation is the fastest route to a binding agreement inside these windows:
| Your situation | Time limit to apply | From when |
|---|---|---|
| Married then divorced | 12 months | The date your divorce becomes final |
| De facto relationship | 24 months | The date of separation |
You can settle before a divorce is even finalised — many couples do. If you're past a limit, a court's permission is sometimes possible but not guaranteed, so don't bank on it. See de facto property disputes → or read the full guide to property settlement after separation →
What if you can't agree on a value — or your ex stalls?
Disagreement over what something is worth is normal, and it doesn't derail mediation: you simply agree on an independent valuer for the home, business or super and work from their figure. Delay is the bigger risk — sometimes one party drags things out hoping the other gives up. Mediation counters that by setting a clear timetable and a shared disclosure list up front, so there's nowhere to hide and far less room to stall than in slow-moving litigation.
Making your settlement binding: consent orders or a BFA
A handshake agreement isn't enough — to be safe and final, a property settlement should be formalised. There are two routes, and your mediator helps you choose:
| Consent orders | Binding financial agreement (BFA) | |
|---|---|---|
| Approved by a court | Yes — a registrar checks it's just and equitable | No — a private contract between you |
| Independent legal advice | Not required | Required for each party |
| Typical cost | Lower (one court filing fee) | Higher (two sets of legal advice) |
| Best for | Most separating couples | Maximum flexibility or pre/during relationship |
For most couples, consent orders are the simpler, lower-cost route. Where you want more flexibility, a binding financial agreement may suit. Compare the two in detail →
Why mediate rather than go to court over your settlement?
Because a contested property case can consume a meaningful share of the very asset pool you're dividing. Mediation keeps the money where it belongs — with you and your family — and lets you craft creative solutions a court can't, like staggered payouts or keeping the home until children finish school. Many family lawyers recommend it as the sensible first step, then we help you formalise the agreement in consent orders.
How long does it take, and what does it cost?
Most property matters settle in one or two mediation sessions over a few weeks, compared with the one to three years a contested case can take — and at a fraction of the cost. Because the fee is fixed and shared, you know what you're committing to up front. See what mediation costs →