Divorce and Property Settlement in Australia
One of the Most Common Misunderstandings Is That Divorce Resolves Financial Matters.
It does not.
Divorce and property settlement are separate legal processes.
Key Legal Distinction
Divorce:
- Ends the marriage
Property settlement:
- Determines how assets, liabilities and financial resources are divided
When Should Property Settlement Occur
Property settlement can occur:
- Before divorce
- After divorce
There is no requirement to wait for divorce.
Time Limits
If you are married:
- You generally have 12 months after divorce becomes final to commence property proceedings
If you do not act within this time:
- You may need court permission
- Your claim may be more difficult
Risks of Delaying Property Settlement
Delaying can result in:
- Loss of entitlements
- Changes in asset pool
- Increased legal costs
Strategic Approach
In many cases, it is advisable to:
- Resolve property settlement before finalising divorce
- This ensures:
- Financial clarity
- Reduced risk
Interaction With Spousal Maintenance
Spousal maintenance claims are also subject to time limits following divorce.