Property settlement is the process of dividing assets, liabilities, and financial resources after separation. It is separate from divorce, but often runs alongside it. Many people feel overwhelmed because they’re balancing emotions, children, and financial uncertainty all at once.
This overview explains what usually goes into the ‘property pool’, how outcomes are commonly assessed, and how agreements are typically formalised so you can move forward with more certainty.
If you’re also looking at divorce timing, read:
What goes into the property pool?
The pool may include homes, savings, debts, vehicles, businesses, and superannuation. Full and frank disclosure is important — a clear picture of the pool helps negotiations and reduces disputes.
- Assets (property, savings, investments, vehicles, business interests)
- Liabilities (mortgages, credit cards, personal loans, tax debts)
- Financial resources (sometimes including future entitlements or benefits)
- Superannuation (often significant, treated differently to cash)
How outcomes are usually assessed (the broad framework)
While every matter depends on its facts, property settlement is often assessed in stages, with the goal of reaching an outcome that is ‘just and equitable’.
- Identify and value the asset pool
- Consider contributions (financial and non-financial, including homemaking and parenting)
- Consider future needs (health, income, care of children, etc.)
- Check that the outcome is just and equitable in all the circumstances
Contributions (what this can include)
Contributions are not only about income. They can include initial assets brought into the relationship, ongoing financial contributions, and non-financial contributions such as homemaking and caring for children.
- Income and financial support during the relationship
- Caregiving and homemaking roles
- Renovations or improvements to property
- Support given to the other party’s career or business
Future needs (why they matter)
Future needs considerations can include factors such as earning capacity, health, the care of children, and financial resources. These factors may influence the overall division depending on the circumstances.
- Differences in income and capacity to earn
- Health issues affecting work capacity
- Primary care of children
- Age and financial resources
Superannuation and property settlement
Superannuation is often one of the largest assets but is not ‘cash in the bank’. It is commonly dealt with by way of a super split rather than a payout.
Formalising an agreement
Informal agreements can be risky. Agreements are commonly formalised via consent orders or a binding financial agreement (BFA). Formalising helps reduce future disputes and can provide enforceability.
If you want context on BFAs, read:
Common early preparation steps
- Gather documents (bank statements, mortgage statements, super balances, tax returns)
- List assets and liabilities in a shared ‘pool’ document
- Consider valuations where needed (property, businesses)
- Note any urgent issues (mortgage pressure, accounts, interim arrangements)
- Get advice about time limits and formalisation options