Property Settlement for Expats: How Australian Family Law Applies When You Live Overseas

Australian Family Law for Expats
Many Australians living abroad mistakenly believe that relocating overseas severs their ties to Australian family law, particularly in relation to property settlement following separation or divorce. In reality, the Family Law Act 1975 (Cth) has extraterritorial application in certain circumstances, meaning that Australian courts may retain jurisdiction over your property matters even if you, your former partner, or both of you are residing outside Australia.
When Does Australian Family Law Apply to Expats?
Australian courts may exercise jurisdiction in property settlement proceedings if at least one party to the relationship is an Australian citizen, is ordinarily resident in Australia, or regards Australia as their permanent home. This remains the case even if you have been living overseas for an extended period. The courts will consider factors such as citizenship, domicile, and habitual residence when determining whether they have jurisdiction to hear your matter.
Australian citizen – You retain a permanent connection to Australia, even if living abroad.
Domicile – This means Australia is your permanent home, even if you live overseas for many years. If you intend to return eventually, you may still be “domiciled” here.
Ordinary residence – Refers to where you usually live, not just where you happen to be at a point in time. Someone working overseas on contract but maintaining a home and family ties in Australia may still be ordinarily resident.
Sometimes both Australia and the country where you currently live may have jurisdiction to deal with your property matters. This is known as a forum dispute. Courts may consider which jurisdiction is the “most appropriate forum,” looking at where the parties live, where the assets are held, and which system of law would achieve a fair outcome.
The Norton Law Group assists expatriate clients in navigating these complex jurisdictional issues, ensuring that their rights and entitlements under Australian law are protected, regardless of their current country of residence. We understand the nuisances of living an expat, and can help you better understand whether Australian Family Law might apply to your separation.
Common Scenarios for Expatriate Property Settlement
We have extensive experience assisting international family law clients based in international hubs such as Hong Kong, Singapore, Malaysia, and Dubai with property settlements involving Australian assets. Typical scenarios include:
- Ownership of a family home or investment property in Australia, with both parties now residing overseas
- Superannuation or retirement funds held in Australia
- Interests in Australian companies, trusts, or share portfolios
- Australian bank accounts or other financial assets
Australian courts can make orders in relation to property located both in Australia and overseas. However, enforcing an Australian order overseas depends on the laws of the country where the property is situated. Some jurisdictions readily recognise Australian judgments, while in others, you may need to commence local proceedings to give effect to the order. This is particularly important for real estate, bank accounts, or investments held offshore.
It is important to note that even if your divorce was granted in a foreign jurisdiction, you may still require an Australian property settlement to achieve a legally binding division of assets under Australian law. We can guide you through this process, no matter where you are located
The Property Settlement Process for Expats
The process for dividing property under Australian law is broadly similar for expats and residents, but there are additional considerations for those living abroad:
- Remote Valuations: Property, business interests, and superannuation can be valued without your physical presence in Australia.
- Electronic Filing: Court documents can be lodged electronically via the Federal Circuit and Family Court of Australia’s online portal.
- Virtual Hearings: Many court appearances can be conducted by video link, minimising the need for international travel.
- Coordination Across Jurisdictions: We manage all aspects of your matter, from obtaining valuations to liaising with overseas professionals, ensuring a seamless process.
Superannuation is unique to the Australian system and can only be divided by an order of an Australian court. Even if the rest of your assets are overseas, superannuation cannot be split or adjusted through a foreign divorce or settlement process. This is a common oversight for expats but is often a significant part of the asset pool.
Expats should also be aware of strict time limits for commencing property settlement proceedings:
- Married couples – within 12 months of a divorce order taking effect.
- De facto couples – within 2 years of separation.
Missing these deadlines can severely limit your options and may require special permission from the court to proceed.
Our specialist team at The Norton Law Group is experienced in coordinating every stage of the property settlement process for expats, allowing you to resolve your Australian property matters efficiently and effectively from anywhere in the world.
Avoiding Common Pitfalls
Expatriates often encounter unique challenges in property settlement matters, including:
- Assuming that an overseas divorce automatically resolves Australian property issues, which is not the case unless a property settlement is formalised under Australian law.
- Overlooking Australian tax implications, such as capital gains tax on the sale of Australian property or the impact of foreign residency on tax liabilities.
- Delaying the commencement of property settlement proceedings, which can complicate evidence gathering, asset tracing, and valuations.
- Double taxation risks; some expats may face overlapping tax obligations in Australia and their country of residence. Specialist advice is critical to minimise exposure.
- While an overseas divorce may be recognised in Australia, it does not automatically finalise property or superannuation matters under Australian law.
Our specialist family lawyers can help you avoid these pitfalls, protect your entitlements, and streamline the process.
Key Takeaways
- Australian family law may continue to apply to your property settlement, even if you are living overseas.
- The Australian courts can exercise jurisdiction if you are an Australian citizen, ordinarily resident, or consider Australia your permanent home.
- Property settlement can be managed remotely, with electronic filing and virtual court appearances.
- Specialist advice is essential to navigate jurisdictional, tax, and procedural complexities.
Contact Us
If you are an Australian expatriate with property interests in Australia, our experienced team can provide tailored advice and manage your property settlement from start to finish, wherever you are in the world. Whether you are living in Hong Kong, Singapore, Dubai, London, New York, or elsewhere overseas our experienced family law team can provide tailored advice and manage your property settlement from start to finish.
Living overseas does not mean leaving behind your rights under Australian family law. Whether you hold property, superannuation, or financial interests in Australia, it is important to understand that these assets may still be subject to division under the Family Law Act. Australian courts can and do make orders concerning assets located both in Australia and abroad but achieving a fair and enforceable outcome often requires careful navigation of cross-border laws, tax obligations, and enforcement challenges.
Contact us today to discuss your circumstances and secure your entitlements under Australian law.