When a relationship ends, many people feel worried about money, the home and their long-term security. One of the most common questions I hear is: “What is a fair property settlement?”

In Australian family law, there is no automatic 50/50 rule. Instead, the focus is on reaching an outcome that is just and equitable in all the circumstances.

Step 1: Identifying the property pool

The first step is to identify and, where possible, value the “property pool”. This can include:

• Real estate (family home, investment properties)

• Savings, shares and investments

• Superannuation

• Vehicles and businesses

• Debts, loans and credit cards

Both assets and liabilities are part of the picture.

Step 2: Looking at contributions

The law considers different types of contributions made by each person, including:

• Financial contributions – income, savings, paying the mortgage, gifts or inheritances

• Non-financial contributions – renovating or improving property, unpaid work in a family business

• Contributions to the welfare of the family – caring for children, managing the household, supporting the other partner’s career

Time spent raising children or running the home is recognised as a valuable contribution.

Step 3: Considering future needs

The next question is how each person is likely to manage in the future. Factors can include:

• Age and health

• Ability to earn an income

• Care responsibilities for children

• Differences in financial resources and opportunities

These “future needs” may justify an adjustment in favour of one person.

Step 4: Is the outcome “just and equitable”?

Finally, any proposed division must be fair in the overall circumstances. This is a legal test, but it is also a practical question: does the result make sense for this particular family?

Why tailored advice is important

Because every relationship and property pool is different, two cases that look similar on the surface can still have different outcomes. Getting legal advice early can help you:

• Understand realistic ranges of settlement

• Protect important assets and information

• Explore negotiation and mediation options

 

This article gives general information about property settlement after separation in Australia. It is not legal advice and may not reflect recent changes in the law. You should obtain advice from a qualified family lawyer about your specific circumstances.

 

If you are recently separated and concerned about how your property will be divided, you can contact our office to discuss your options in confidence.