Property Settlement Lawyers in Sydney, NSW (Matrimonial/De Facto)
How is property divided when a relationship ends in Australia?
There is no automatic 50/50 split in Australia. Under the Family Law Act 1975, you and your former partner work out what you own and owe, then look at each person’s contributions and future needs to reach a split that is just and equitable. This applies to married and de facto couples. Time limits apply: generally 12 months after a divorce is final, or two years after a de facto relationship ends.
- Who it covers: married couples and de facto couples (including same-sex couples)
- What counts as property: the family home, savings, investments, businesses, vehicles, debts and superannuation
- How it’s resolved: by agreement (made binding through consent orders) or by a court decision
- Where: the Federal Circuit and Family Court of Australia
- Time limits: generally 12 months from divorce becoming final, or two years from the end of a de facto relationship
Since 10 June 2025, the court must also consider the economic effect of any family violence and the housing needs of children.
For a complete overview of divorce and separation in NSW, read our DIVORCE AND SEPARATION GUIDE.
David Meredith has practised family law since 2002.
How the court divides property
The Family Law Act sets out four steps:
- Identify all the property, debts and superannuation of both people.
- Assess each person’s contributions: financial, non-financial, and as a homemaker or parent.
- Consider each person’s current and future circumstances, such as age, health, earning capacity, and the care and housing needs of any children under 18.
- Check that the result is just and equitable.
Since 10 June 2025, the court must also consider the economic effect of any family violence, including financial abuse, at steps 2 and 3.
Superannuation Splitting After Separation in NSW
Superannuation is treated as property under the Family Law Act 1975 and can be divided between separating parties as part of a property settlement. For many Australian couples, superannuation is one of the largest assets in the relationship — often larger than the family home.
Superannuation splitting does not mean one party receives cash immediately. Instead, the super is split and transferred into the other party’s superannuation fund, where it remains until that person reaches preservation age.
Key things to understand about super splitting in NSW:
1. Both parties must formally disclose their superannuation interests during the property settlement process
2. You need a superannuation splitting order — either by consent or through the court
3. Self-managed super funds (SMSFs) have additional complexity and need careful advice
4. The fund trustee must be served with procedural fairness before any split takes effect
Failing to account for superannuation in a property settlement is one of the most costly mistakes separating couples make — particularly for parties who took time out of the workforce to raise children and have significantly lower super balances as a result.
What are some common issues I may encounter along the way?
During the process of working through the above questions to resolve a financial dispute, parties may encounter any of the following challenges:
- Whether a business should be valued and if so, how
- How to determine if property is being hidden by one party and if so how to ensure that property is included within the asset pool
- Whether any injunctions need to be issued by the court to protect property from being dissipated or removed from the asset pool
- How mortgage payments need to be paid until the matter has been finalised
- Which party can or should remain living in the matrimonial home until the parties have reached a final agreement, or until trial
- How to assess the health concerns of either party, and whether that party should receive more of the asset pool as a result of any health challenges;
- How to determine a party’s true earning potential if that party chooses to work less hours, when they are able to work more
- Whether the home should be transferred from one party to the other, or if it should be sold
These, and many more, are common issues arise as a matter progresses towards a resolution. The sooner these issues are identified and resolved, the sooner the entire matter can progress towards settlement.
Meredith Family Lawyers have years of experience in dealing with these challenges, and they will be able to provide you with the insight and guidance you need to move forward.
Property Settlement, Consent Orders and Binding Financial Agreements (BFAs) — What's the Difference?
There are three main ways to formalise a property settlement in Australia. Understanding the difference helps you choose the right path for your situation.
Informal agreement — you and your former partner agree verbally or in writing on how to divide assets. This is not legally enforceable and offers no protection if one party changes their mind or circumstances change. Not recommended for significant assets.
Consent orders — a written agreement filed with the Federal Circuit and Family Court of Australia. Once approved by the court, consent orders are legally binding and enforceable. This is the most common path for couples who have reached agreement and want legal certainty without a court hearing. Stamp duty exemptions apply to property transfers made under consent orders.
Binding financial agreement (BFA) — a private contract between the parties that does not require court approval. BFAs offer more flexibility than consent orders but carry higher risk if not drafted correctly. Both parties must obtain independent legal advice before signing. A BFA that does not meet all legal requirements can be set aside by the court.
At Meredith Family Lawyers, we advise on which option best suits your circumstances and draft the necessary documentation to protect your interests.
Read more about CONSENT ORDERS AND BINDING FINANCIAL AGREEMENT in NSW.
Time Limits for Property Settlement in NSW — Act Before It's Too Late
One of the most critical things to understand about property settlement in Australia is that strict time limits apply. Missing these deadlines can cost you your right to claim entirely.
For married couples: you must commence property settlement proceedings within 12 months of your divorce becoming final. If your divorce order took effect on 1 January 2026, you have until 1 January 2027 to file — not from the date of separation.
For de facto couples: you must commence proceedings within 2 years of the date of separation. De facto couples cannot apply for divorce, so the clock starts from the day the relationship ended.
What happens if you miss the deadline? You must apply to the court for special permission to file out of time. The court will only grant this in limited circumstances — such as hardship or a significant change in circumstances. There is no guarantee permission will be granted.
The safest approach is to begin the property settlement process as early as possible after separation, even if you and your former partner are on good terms. Circumstances change, and having a legally binding agreement in place protects both parties.
Don’t Wait Until It’s Too Late
Time limits on property settlement are strict and unforgiving. If you are unsure where you stand, speak to a Meredith Family Lawyer today — a single consultation could protect your financial future.
Frequently Asked Questions About Property Settlement
Property settlement is the legal process of dividing assets, liabilities and superannuation between separating parties after the breakdown of a marriage or de facto relationship. It must be formalised through consent orders or a binding financial agreement to be legally enforceable.
Not automatically. There is no rule that the home, or anything else, is split 50/50. The court looks at all the property both of you own, each person’s financial and non-financial contributions (including caring for children), and each person’s future needs. It does not matter whose name is on the title. The result can be equal, but often it isn’t.
No. There is no automatic 50/50 split in Australia. The court applies a four-step process considering the total asset pool, each party’s financial and non-financial contributions, each party’s future needs, and whether the outcome is just and equitable for both parties.
For married couples, you have 12 months from the date your divorce order becomes final to commence property settlement proceedings. For de facto couples, you have 2 years from the date of separation. Missing these deadlines requires special court permission to file a claim.
They can be. In NSW, de facto couples can split super in the same way as married couples. Generally, you must have lived together for at least two years, have a child together, or one of you must have made substantial contributions. A de facto partner must apply within two years of the relationship ending.
There is no fixed percentage. Each person’s share depends on the size of the property pool, what each person contributed, and each person’s current and future circumstances, such as earning capacity and who cares for the children. Outcomes are often not 50/50: a spouse with a lower income and the main care of the children commonly receives more than half.
A 70/30 split means one person receives 70% of the net property pool and the other 30%. It is not a standard formula, but an outcome that can happen when contributions or future needs are very unequal. For example, one person may have brought significant assets into the relationship, or may have a much lower earning capacity while caring for the children.
Consent orders are filed with the Federal Circuit and Family Court and become legally binding once approved. Binding financial agreements are private contracts between the parties that do not require court approval but carry higher risk if not drafted correctly. Both parties must obtain independent legal advice before signing a BFA.
Yes. Most property settlements are agreed without a court hearing. But an informal agreement isn’t legally binding: to make it final, you can apply for consent orders (filing fee $215 from 1 July 2026), or sign a binding financial agreement, which requires each of you to get independent legal advice. Getting advice before you sign helps you understand what you may be giving up.
If you and your former partner cannot reach agreement, either party can apply to the Federal Circuit and Family Court for property orders. The court will then determine how assets are divided based on the four-step process under the Family Law Act. Legal representation is strongly recommended in contested property matters.
No. There is no automatic rule that the family home goes to the parent who lives with the children. However, the court does consider the needs of any children and the parent caring for them when assessing future needs as part of the four-step property settlement process.
Once consent orders are made by the court or a binding financial agreement is signed, they are very difficult to change. The court will only set aside final property orders in limited circumstances such as fraud, failure to disclose assets, or a significant change in circumstances. This is why getting it right the first time is critical.
A negotiated property settlement formalised through consent orders typically takes 3–6 months from the start of negotiations to court approval. Contested property matters that go to a hearing can take 12–24 months or longer depending on complexity.
Yes. Superannuation is treated as property under the Family Law Act 1975, even though you usually can’t access it yet. It can be split by agreement or court order, which moves part of one person’s balance into the other’s fund, where it stays until the normal release rules allow it to be paid out. For many couples, super is one of the largest assets, so it should always be included.
It depends on whether you agree. If you reach agreement and file consent orders, the court fee is $215 plus any legal costs for advice and drafting. If you can’t agree, mediation and court proceedings cost much more. At Meredith Family Lawyers, your first 15-minute phone consultation is free, so you can find out which path suits your situation.
Very little is left out. Everything either person owns, in their own name or jointly, goes into the pool, including assets from before the relationship, inheritances, gifts and superannuation, along with debts. How an asset was acquired affects the assessment of contributions, not whether it is counted. Child support is dealt with separately from the property settlement.
