What you should know About Family Law Property settlements in Australia

Dividing property after a separation can feel overwhelming however in Australia, we have a clear framework under the Family Law Act 1975 (CTH) (“the Act”) about how assets are divided between separated couples.

What is “property”?

When we talk about property arrangements, we discuss 3 key elements:

1. Assets – this is all of your “stuff” such as your house, car, bank accounts, furniture, jewellery etc. When we talk about family law matters, we try to focus on those assets that have a higher value.
2. Liabilities – this is the money you owe such as mortgages, loans, credit cards and other debts etc.
3. Superannuation – technically superannuation is an asset, however because there are limitations as to how we can deal with superannuation we discuss as its own element.

Understanding what is “property” is a key element in a family law property settlement in Australia and represents the first step in your family law matter. The way we understand what is the “property pool” is by financial disclosure.

What is financial disclosure

Financial disclosure is a specific type of disclosure requirement under the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (CTH) (“the Rules“) and is a key step in a family law matter. As part of this step, you and your former spouse will exchange records about your finances including but not limited to:

• Bank account, credit card, loan and mortgage statements
• Superannuation statements
• Valuations or market appraisals
• Company records such as profit and loss statements

Once these records are exchanged and parties have a complete understanding of the property pool and financial circumstances of one another then the parties can start negotiating a property settlement based:

1. The financial and non-financial contributions each party made to the relationship
2. The current and future circumstances of the parties.

Contributions

When looking at a property settlement in Australia the act says parties, and the Court, should consider the contributions that each party has made being:

1. Financial contributions – Money or assets a person directly, or indirectly, brought into the relationship or received during it.
2. Non-financial contributions – Direct, or indirect, efforts that assisted the parties to acquire, conserve or improve property of the marriage.
3. Homemaker/Parent – the contribution made by a party to the welfare of the family of the parties, including in the capacity of homemaker or parent.

Current and Future Circumstances

The next step in a family law property settlement is to consider the current and future circumstances of the parties and whether an adjustment should be made considering those circumstances. There are multiple factors considered in the current and future circumstances including but not limited to:

• The age and state of health of the parties
• The care of the children
• The effect of any intentional or reckless wastage of a party
• The responsibilities of each party to support another person
• The effect on a person’s earning capacity

Family Violence

In 2025 amendments were made to the Act which required the Court to consider the impact of family violence on a person’s ability to contribute to a marriage, including whether their contributions were more difficult considering the family violence, or whether they were unable to contribute due to family violence.

The Court is also required to consider how family violence will affect a person’s current and future circumstances, including for example, the effect of family violence on a person’s earning capacity or future health of the party.

Just and Equitable

The principle that underscores all property settlement is whether the outcome proposed is just and equitable having regard to the contributions and current and future circumstances.

Whether an outcome is just and equitable is not just something considered at the conclusion of a matter but throughout and your lawyer will discuss the principle regularly when giving you advice.