Is Property Always Split 50/50 After Separation in Australia? | Property Settlement Explained
When it comes to property settlement after separation in Australia, one of the most persistent myths is that assets are always split 50/50. While this idea of equal division may seem fair, it's not how Australian family law actually works.
In reality, the Federal Circuit and Family Court of Australia applies a four-step process to determine a just and equitable division of property, which rarely results in a perfect 50/50 split. If you're separating or divorcing in New South Wales (NSW), it's important to understand how your property settlement entitlements are calculated and why each case is different.
How Property Is Divided After Separation in Australia
Under family law in Australia, the division of assets considers more than just financial contributions. The Court takes into account each partner's role during the relationship and their future financial needs.
Here are three key factors that influence how property is divided in a property settlement in NSW:
- Financial Contributions
These are the direct monetary contributions made by either party before, during, or after the relationship. Financial contributions may include:
- Buying real estate, vehicles, or investments
- Income and salary from employment
- Paying down mortgages or personal debts
- Accumulation of superannuation
- Gifts or inheritances received
Each contribution is assessed for its value and timing to determine how it impacts the overall asset pool.
- Non-Financial Contributions
These are equally important in the eyes of the Court and include:
- Homemaking duties such as cooking, cleaning, and maintaining the home
- Renovations, repairs, or home improvements
- Caring for children
- Supporting a partner's career or education
While these contributions don't have a direct dollar value, they are recognised for the role they play in building the family's assets and wellbeing.
- Future Needs of Each Party
A crucial part of property settlement in family law is looking ahead. The Court evaluates:
- The age and health of both parties
- Who will care for the children
- Each party's income and financial resources
- Earning capacity and future income prospects
- Any disabilities or ongoing medical conditions
If one party is at a financial disadvantage after the separation, adjustments may be made in their favour to ensure a fair outcome.
Do You Need a Property Settlement Lawyer in Sydney?
If you're separating and wondering what you're entitled to in a family law property settlement in NSW, it's essential to get tailored legal advice. At Greigs Legal, our experienced property settlement lawyers in Sydney can help you understand your rights and negotiate a fair division of assets.
Speak with a Family Lawyer in NSW Today
Let our team guide you through the property settlement process with clarity and confidence. Call Greigs Legal on (02) 4647 2968 or complete our online enquiry form to book a consultation with a property settlement solicitor.
