Who gets what in a Property Settlement in Australia?

September 2, 2025

Property settlements after separation are rarely as simple as a 50/50 split. Australian family law takes a more nuanced approach, looking at a range of factors to determine what is just and equitable for both parties. This blog will explain these factors in detail what the Court considers when making decisions,how property is divided, including recent changes made in 2025. Additionally, it will explain the steps you can take when making property arrangements after separation. We’ll also look at common questions such as “Who gets the house?” and “What am I entitled to in a property settlement?” so you know where you stand.

What counts as a property?

Property includes all assets and debts owned by both parties of the relationship, whether it is

owned solely or jointly. Property may include:

The family home (marital home)
Bank accounts
Businesses
Family trusts
Superannuation
Vehicles
Shares
Investment properties
Jewellery
Inheritances and gifts
Debts including mortgages, loans and credit cards

Note: Property settlements cover both married and de facto couples.

For married couples, applications must be made within 12 months of the divorce being finalised.
For de facto couples, applications must be made within 2 years of separation.

When can the Court make financial or property orders?

The Court can make financial or property orders for both married or de facto couples. For married couples, applications for these orders must be made within 12 months of the divorce becoming final. For de facto couples, applications must be made within 2 years of the breakdown of the relationship.

How does the Court determine property settlements?

There is no specific formula that the Court will use to divide property and finances. The division of property will differ in every case however, an experienced family lawyer may be able to predict a range of outcomes the Court may decide, depending on your

circumstances. Should your matter go to Court, the steps of a property settlement are as follows:

1. The Court must identify the assets and liabilities of each party, whether owned individually or jointly, and the value of these assets and liabilities.

2. The Court will assess each party’s contributions to the property pool and to the welfare of the family. These include:

Direct financial contributions of each party: This may include property you owned before you lived together, and wage and salary earnings received by each party whilst living together.
Indirect financial contributions by each party: This may include gifts and inheritances from family members and compensation and redundancy payouts.
Negative contributions such as excessive gambling, substance abuse or other forms of wastage.
Non-financial contributions: This may include renovations of the family home, management of investments and running a business.
Contributions to the welfare of the home for example, childcare, household duties and other efforts to maintain the relationship.
The effect of family violence on a party’s ability to make financial or non- financial contributions.

3. The Court will assess each party’s current and future circumstances. These include the age, health and financial resources of each party, care of children and each party’s ability to earn income.

4. Once this has been completed, the Court will make orders they believe are just and equitable in all the circumstances

Changes made to the Family Law Act in 2025 regarding property settlement From 10 June 2025, there have been various changes to the Family Law Act 1975 that have an impact on how the court may determine property settlements. They include:

1. The effect of family violence on property settlements

The economic effect of family violence must now be considered during property settlements. This is particularly relevant when assessing a party’s contributions to the property pool, to the welfare of the family and when assessing their current and future circumstances. For example, their contributions may have been limited if their finances have been controlled, or they have ongoing counselling or rehabilitation costs.

2. Pets in property settlements

If the Court is considering whether to make an order about pets in property settlements, they now must consider a specific list of matters that apply solely to family pets. This may include:

Any animal abuse, including any threatening behaviour; and
The attachment of each party, or children in the relationship, to the family pets.

Who Gets the House in a Divorce or Separation?

One of the most common questions separating couples ask is: “Who gets the house?”

The answer depends on your circumstances. The Court does not automatically award the family home to the person whose name is on the title. Instead, it is included in the overall property pool and divided according to the same four-step process outlined above.

If the House Is in Joint Names

The Court may order the home to be:

Sold, with the proceeds divided between both parties.
Transferred into one party’s name, often with a financial adjustment made to the other.
Kept for the children, where one parent remains in the home to provide stability, usually until the children reach a certain age.

If the House Is in One Partner’s Name

Even if only one person legally owns the property, it can still form part of the property pool. The other partner may be entitled to a share, depending on their contributions (financial, non-financial, and homemaker).

When Children Are Involved

The Court places significant weight on the care and welfare of children. In many cases, the parent who is the primary carer may be allowed to remain in the home, at least temporarily, to provide stability for the children.

Other Options

One party may buy out the other’s share.
The home may be sold and downsized, with proceeds split.
In rare cases, the Court may defer the sale until a “trigger event” such as the children finishing school.

The key point: ownership of the house depends not just on the title deed, but on what is fair and equitable given both parties’ contributions and future needs.

What should you consider before making an application to the Court?

When making financial arrangements and before making an application to the Court, you should consider the following:

Superannuation: It is not mandatory for separating couples to adjust their superannuation interests. However, if you wish to do so, this must be done when you are formalising your financial arrangements.
Maintenance: If you believe you require spousal, de facto or child maintenance, it is important to find out any information you may need as soon as possible.
Bankruptcy of a party: If one of the parties to the proceedings is bankrupt, this means their property immediately vests in the trustee. However, some forms of property are excluded, such as most household goods, superannuation and motor vehicles up to a certain value. It is important to understand this, before you apply for property settlement.

Conclusion

Property settlements in Australia are not always straightforward. There is no fixed formula, and outcomes depend on many factors from financial and non-financial contributions to future needs and, in 2025, even the impact of family violence and the treatment of pets.

Understanding who gets what in Property Settlement requires looking at the bigger picture: the property pool, each party’s contributions, and what is fair in all the circumstances.

The Norton Law Group helps clients across Sydney understand where they stand legally and what a fair property division might look like in their specific situation and represent them on legal matters. Whether your asset pool is straightforward or complex, early legal advice can protect your interests and avoid unnecessary disputes. Our Accredited Specialists in Family Law are experienced in negotiating and, where needed, litigating property settlements to achieve strong, practical outcomes.

Speak with us today before making any financial decisions.

< Older Post