There is no simple formula and property is not automatically divided 50/50.

Under the Family Law Act 1975 (Cth), a property settlement involves considering the parties' existing property interests and liabilities, their respective contributions, their current and future circumstances, and whether the proposed outcome is just and equitable.

Every relationship is different, which means the outcome will depend on the particular financial and personal circumstances of the parties.

What is included in a property settlement?

A property settlement can involve much more than the family home.

The financial circumstances of both parties need to be identified. Depending on the relationship, this may include:

• houses and other real estate;
• mortgages and other loans;
• bank accounts and cash;
• shares and investments;
• businesses and business interests;
• companies and trusts;
• motor vehicles;
• superannuation;
• cryptocurrency;
• personal property; and
• other assets, liabilities and financial resources.

Property may be relevant regardless of whose name it is registered in.

This is one reason why obtaining proper financial disclosure is an important part of the property settlement process.

See our article Duty of Financial Disclosure in Family Law Property Settlements.

1. Identifying the property and liabilities

The first part of the process involves identifying the parties' existing legal and equitable rights and interests in property and their existing liabilities.

The current legislation expressly requires the Court to undertake this identification when considering what property settlement order should be made.

For many couples, this may be relatively straightforward: a home, mortgage, bank accounts, vehicles and superannuation.

For others, determining the financial position can be considerably more complicated.

For example, there may be:

• a family business;
• interests in companies or trusts;
• investment properties;
• loans involving family members;
• complex taxation liabilities;
• overseas property;
• significant superannuation interests; or
• disagreement about the value or ownership of particular assets.

Professional valuations may sometimes be required, particularly for businesses or real property.

2. Considering each person's contributions

The next consideration is the contributions made by each party.

Importantly, contributions are not limited to who earned the most money.

The Court can consider financial contributions, non-financial contributions and contributions to the welfare of the family, including contributions as a homemaker or parent. The current Act expressly provides for these categories of contribution.

Financial contributions

These can include:

• assets owned when the relationship began;
• wages and other income;
• mortgage payments;
• savings;
• investments;
• inheritances;
• gifts from family; and
• money contributed towards acquiring or improving property.

The significance of a particular contribution depends on the circumstances of the relationship.

Non-financial contributions

A person may also contribute significantly without directly contributing money.

Examples can include undertaking renovations, managing aspects of a family business or making other contributions that improve or preserve property.

Homemaker and parenting contributions

Looking after children and maintaining the household are also recognised contributions.

Accordingly, the fact that one person earned most of the income during a relationship does not mean that person will necessarily receive most of the property.

3. Considering current and future circumstances

The parties' respective current and future circumstances must also be considered.

Depending on the case, relevant matters can include:

• age and health;
• income and earning capacity;
• care of children;
• financial resources;
• responsibilities to support another person;
• the duration of the relationship;
• child support circumstances; and
• other matters specified by the legislation.

Since the family law amendments that commenced on 10 June 2025, the legislation also expressly addresses the economic effect of family violence where relevant to the property settlement assessment.

These considerations can result in an adjustment to the division that might otherwise result from the parties' contributions.

4. Is a 50/50 property settlement automatic?

No.

There is no rule that separating couples must divide their property equally.

In some relationships an equal division may be appropriate. In others, the circumstances may justify a different outcome.

For example, two people may have made broadly comparable contributions during a long relationship, but one may have substantially lower earning capacity and greater responsibility for the future care of young children.

Conversely, a shorter relationship involving substantial assets brought in by one party may raise quite different considerations.

The outcome therefore depends on the circumstances rather than a predetermined percentage.

What happens to superannuation?

Superannuation can form an important part of a property settlement.

Family law allows superannuation interests to be dealt with through property settlement arrangements, including by way of a superannuation splitting order or agreement where appropriate.

This does not necessarily mean the superannuation account is immediately converted into cash. A split generally transfers an interest for the benefit of the other party, subject to the applicable superannuation rules.

For relationships where one party has accumulated significantly more superannuation than the other, superannuation can be an important part of the overall settlement.

What if a business, company or trust is involved?

Property settlements involving businesses, companies and trusts can be significantly more complicated.

It may be necessary to determine:

• the value of a business;
• the parties' respective interests;
• the structure through which the business operates;
• interests held through companies or trusts;
• loans between related entities;
• taxation consequences; and
• whether expert valuation evidence is required.

Simply looking at whose name appears on a company or trust document may not provide the complete picture.

You can read more in our guide to Complex Property Settlements: Businesses, Companies and Trusts.

Does property have to be sold?

Not necessarily.

There are many ways a property settlement can be structured.

For example, one party may retain the family home and refinance the mortgage, while the other receives other property or a cash payment.

Alternatively, property may be sold and the net proceeds divided.

The appropriate structure will depend upon matters including the available assets, borrowing capacity, taxation implications and the parties' circumstances.

How can a property settlement be formalised?

Reaching an agreement with your former partner does not necessarily mean the financial relationship has been legally finalised.

Depending upon the circumstances, an agreed property settlement may be formalised through:

• Consent Orders approved by the Federal Circuit and Family Court of Australia; or
• a Binding Financial Agreement, where the legislative requirements for such an agreement are satisfied.

The appropriate method depends upon the circumstances of the parties and the proposed settlement.

Properly formalising a settlement can provide certainty and reduce the risk of future property claims.

Do you need to go to Court?

Not necessarily.

Many property settlements are negotiated and resolved without a final Court hearing.

Parties may reach agreement through direct negotiations, negotiations between solicitors, mediation or another dispute-resolution process.

Where agreement cannot be reached, an application may ultimately need to be made to the Federal Circuit and Family Court of Australia.

You can also read more about property settlements after separation and the steps involved in resolving financial matters in our article Property Settlements After Separation.

Getting advice about a property settlement

There is no standard percentage that applies to every separation.

Two couples with assets of the same value can have very different property settlement outcomes because their contributions, financial circumstances, family arrangements and future circumstances may be entirely different.

Obtaining legal advice early can help you understand the property available for division, the matters relevant to your circumstances and the options for reaching and formalising a settlement.

This article provides general information only and is not legal advice. The appropriate outcome of a property settlement depends on the individual circumstances of each matter.