Property Settlement After Separation

Time Limits, Common Myths, and a Realistic Step by Step Process

Property settlement in Australia sits under the Family Law Act 1975 (Cth) (the Act). The Court does not use a formula, and outcomes depend on the facts of each case. This article explains the deadlines, clears up common myths, and sets out the practical process most separating couples follow.

1. Do you need to be divorced first

No. You can ask the Court to make property settlement or spousal maintenance orders even if you are not yet divorced. Divorce matters mainly because it triggers the limitation period for married couples.

2. Time limits you cannot ignore

Married couples

For most property and spousal maintenance proceedings, the Act says proceedings must not be started more than 12 months after the divorce order takes effect, unless you get the Court’s leave or both parties consent (and the Court may still deal with that consent issue in limited circumstances).

If you apply out of time, the Court must not grant leave unless it is satisfied (relevantly) that hardship would be caused to a party or a child if leave were refused.

De facto couples

For de facto property proceedings, the Act sets a standard application period of 2 years after the end of the de facto relationship, subject to specific exceptions. If you miss the standard period, the Court can grant leave only if it is satisfied (relevantly) that hardship would be caused to the party or a child if leave were refused.

Practical point

The limitation periods are real. If you are close to a deadline, get advice immediately. “We were still talking” is not a legal strategy, it is recipe for a disaster.

3. The core legal test

When the Court makes a property order, it must not do so unless it is satisfied that, in all the circumstances, it is just and equitable to make the order.The Court’s general approach focuses on:

• The assets and liabilities of both parties.
• Contributions, including financial contributions, non-financial contributions, and homemaker and parenting contributions.
• Current and future circumstances (future needs), such as age, health, income and earning capacity, care of children and housing needs.

4. What changed from 10 June 2025

From 10 June 2025, changes commenced that affect how the courts determine property settlements and what the courts must consider, including the economic effect of family violence where relevant. The Court also explains these reforms include changes such as:

• Making clear family violence effects are relevant in property division.
• A new framework for determining ownership of a companion animal in property settlements.
• Elevating duties of financial disclosure from the family law rules into the Act.

5. Common myths that cause expensive mistakes

Myth 1: “It’s always 50 50”

Wrong. The Court says there is no formula used to divide property and finances.

Myth 2: “If it’s in my name, it’s mine”

Not necessarily. The Court identifies legal and equitable interests, liabilities, contributions, and future needs, then decides what is just and equitable.

Myth 3: “We can do property only after divorce”

No. You can apply even if you are not yet divorced.

Myth 4: “Super doesn’t count”

Superannuation interests can be adjusted by splitting when you formalise financial arrangements.

Myth 5: “We can share the dog like parenting time”

In family law proceedings, pets are treated as property, and the Court notes it cannot make shared or joint ownership orders about companion animals.

6. A realistic step by step property settlement process

This is the process that matches how most matters actually move from separation to a final outcome.

Step 1: Confirm your relationship type and the key dates

• Married or de facto.
• Separation date.
• If married, the date the divorce order took effect, because the 12-month limitation period runs from that date.
  

Step 2: Do full and frank financial disclosure early

If you do not know the true asset pool, you cannot negotiate properly and you cannot run a case properly. The June 2025 reforms explicitly elevated disclosure duties into the Act.

Step 3: Identify the asset pool and liabilities

The Court identifies the parties’ legal and equitable interests in property and the parties’ liabilities. This usually includes real estate, bank accounts, vehicles, businesses, shares, debts, and superannuation.

Step 4: Value the pool properly

Get reliable valuations for property, businesses, and significant assets. If values are disputed, get expert evidence rather than arguing guesses.

Step 5: Assess contributions

The Court considers contributions including financial contributions, non-financial contributions, and contributions to the welfare of the family such as caring for children and homemaking. Where relevant, the Court may consider the economic effect of family violence on contributions.

Step 6: Assess current and future circumstances

The Court considers each party’s future needs, including matters like age, health, financial resources, care of children and ability to earn an income, and also the economic effect of family violence where relevant.

Step 7: Check the outcome is just and equitable

Even if contributions and future needs point to a particular split, the Court must be satisfied the proposed order is just and equitable in all the circumstances.

Step 8: Formalise the agreement properly

If you reach agreement, formalise it. If you do not, the matter can proceed through the Court process and, if necessary, to a final hearing. It is always possible to reach an agreement even just days before the final hearing.

Final note

Property settlement is a legal process with strict time limits and a fact driven outcome. If you want certainty, start early, disclose fully, value the pool properly, and formalise the result. If you need clear advice and a plan you can actually follow, speak to Pannu Lawyers today.

We will assess your property pool, explain your time limits, and drive the matter toward a fast, enforceable outcome through negotiation or court if needed. When people search for the Best Family Law Solicitors in Sydney, they want straight answers, strong preparation, and firm advocacy. That is what Pannu Lawyers delivers. Book a confidential consultation with Pannu Lawyers now and get practical next steps from the Best Family Law Solicitors in Sydney. If you are done wasting time and want a result you can live with, contact Pannu Lawyers and put the Best Family Law Solicitors in Sydney on your side.

General information only. This is not legal advice and does not consider your circumstances.