Property Division in Australia
Understand how property is divided in Australian family law. The four-step process under Section 79 of the Family Law Act 1975 explained in detail.
The Four-Step Process
Courts follow this structured approach when determining property settlement
Identify & Value Assets
List all assets, liabilities, and superannuation. Value everything at current market value.
Assess Contributions
Evaluate financial, non-financial, and homemaker/parent contributions throughout the relationship.
Consider Future Needs
Apply Section 75(2) factors to adjust for differences in future circumstances.
Just & Equitable Check
Ensure the overall outcome is fair in all the circumstances of the case.
What's in the Asset Pool?
Understanding what property can be divided
| Asset Type | Examples | Included? |
|---|---|---|
| Real Property | Family home, investment properties, land | Yes |
| Vehicles | Cars, boats, motorcycles, caravans | Yes |
| Bank Accounts | Savings, term deposits, offset accounts | Yes |
| Investments | Shares, managed funds, cryptocurrency | Yes |
| Superannuation | All super funds (treated specially) | Yes |
| Business Interests | Sole trader, partnership, company shares | Yes |
| Liabilities | Mortgages, loans, credit cards | Yes |
| Inheritance | May be included depending on timing | Depends |
| Future Assets | Expected bonuses, unvested shares | Depends |
Types of Contributions
Courts consider all contributions made by both parties
Financial Contributions
- Income and earnings
- Gifts and inheritances
- Redundancy payments
- Sale of pre-owned assets
Non-Financial Contributions
- Renovations and improvements
- Unpaid work in family business
- Property maintenance
Homemaker & Parent
- Caring for children
- Household duties
- Supporting partner's career
Negative Contributions
- Gambling losses
- Reckless spending
- Deliberate asset dissipation
Section 75(2) Future Needs Factors
These factors may adjust the division to account for future circumstances
Time Limits
Important deadlines for property settlement applications
Married couples
De facto couples
Extension possible
Court may grant leave to apply out of time