Family Mediation

Can property settlement be resolved through mediation?

In short: Yes. Property settlement can be resolved through mediation, and most separating couples who attempt it do reach an agreement. An agreement reached at mediation can then be formalised as consent orders or a binding financial agreement, making it legally enforceable without a contested court hearing.

How property mediation works

Property mediation follows a similar structure to parenting mediation — a neutral mediator helps both parties identify their assets, debts, and superannuation, understand their legal entitlements, and negotiate a settlement. Sessions typically run for a full day and cover the entire property pool.

Unlike parenting FDR, there is no mandatory pre-court mediation requirement for property matters under the Family Law Act 1975 — but courts expect parties to have made genuine attempts to resolve property before listing for hearing. Parties who have not attempted mediation may face adverse cost orders.

What property mediation covers

  • The family home and other real estate
  • Superannuation splitting
  • Savings, investments, and shares
  • Business interests
  • Debts (mortgage, credit cards, personal loans)
  • Spousal maintenance (where applicable)

What you need to bring to property mediation

Full financial disclosure is required — both parties should have current valuations of all assets, statements for all accounts and superannuation funds, and a clear picture of all debts. Incomplete disclosure is the most common reason property mediation is unsuccessful.

See: what to bring to family mediation.

Formalising the agreement

An agreement reached at property mediation can be formalised as:

  • Consent orders — filed with the Federal Circuit and Family Court of Australia and made as orders of the court. Enforceable and stamp-duty exempt in most states.
  • Binding financial agreement (BFA) — a contract signed by both parties with independent legal advice. Does not require court filing.

See our full guide: consent orders vs binding financial agreements.

Time limits

Property applications must be made within 12 months of divorce being granted, or within two years of the end of a de facto relationship. Missing these deadlines requires the court's leave. Don't delay — see the risks of delaying property settlement.

Sources

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