How is property divided between spouses after divorce in Australia?

What the Law Says

The Family Law Act 1975 (Cth) governs how property is divided when a marriage ends. The law does not assume a 50/50 split — instead, it requires courts to follow a structured approach to reach a result that is 'just and equitable'.

The court must follow a four-step process: first, identify and value all assets, liabilities and financial resources of both parties; second, assess the financial and non-financial contributions each made during the relationship (including homemaking and parenting); third, consider the future needs of both parties (e.g., age, health, care of children, income disparity); and fourth, decide whether the proposed division is 'just and equitable' in all the circumstances.

Both parties have a strict duty of full and frank disclosure of all financial information. Hiding assets or failing to disclose can lead to penalties, including setting aside orders or cost orders.

An application for property settlement must be filed within 12 months of the divorce becoming final. If you miss this deadline, you’ll need special court permission to proceed — which is rarely granted without strong reasons.

Statutory Text

The court must first identify and value the property of the parties; second, assess the contributions of the parties; third, consider the matters set out in subsection (2); and fourth, determine whether the proposed order is just and equitable.

— Family Law Act 1975 (Cth), s. 79(4) — Orders altering property interests

Statutory Text

In proceedings under this section, each party to the marriage has a duty to the court to make full and frank disclosure of all property, financial resources and liabilities.

— Family Law Act 1975 (Cth), s. 79(8) — Duty of disclosure

What to Do

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