In Australia, assets are not automatically split 50/50 after divorce. The Family Court considers each person’s financial and non-financial contributions, future needs, and whether the outcome is just and equitable based on the circumstances.
- Author bio: “Reviewed by Peter Andrews, Family Law Specialist and Legal Practitioner Director in Newstead, Brisbane.”
- Last-reviewed date: December 2025
- Cite Family Court of Australia, QLD Gov, and local Brisbane legal resources
Learn how assets split in Australian divorce. Understand 50/50, 60/40, 70/30 splits, property settlement laws & what courts consider. Get legal advice.
You’re proceeding with a property division and need to split assets in divorce fairly with your former partner. You might be worrying about how to get your rightful share, and that’s completely understandable. This can be a stressful time, but there are legal pathways designed to help you achieve a just and equitable division. With the right family lawyer guiding you, you can navigate the process confidently and protect your financial interests. Once you understand your options, you can take the next step toward a stable and positive new chapter in your life.
Key takeaways
- Parties can use informal arrangements to split assets.
- Binding financial agreements are legally enforceable and don't involve court oversight.
- Consent orders are organised by agreement through the Court.
- Various factors determine your entitlements in Australian divorce settlements.
- A case study can show how an asset split may work.
How do you split assets during a divorce?
Couples have four options when splitting their assets after a divorce.
1. Non-legal arrangement
Non-legal arrangements are made when a couple splits amicably and can agree on dividing their assets without legal documentation. This kind of agreement does not prevent one of the parties from going to court later to ask for financial orders under the Family Law Act.
How to make an effective non-legal arrangement
There’s no set process for making an informal agreement. Here’s a template you can use.
Step 1: Communication
Have an open discussion about what you want from the settlement. Remember that there are two parties involved. Be prepared to compromise.
Step 2: Compile Financial Documents
Lay out your finances. There’s no legal oversight, so you have to trust each other. You can’t make a fair agreement if you don’t know each party’s actual finances.
Step 3: Consider future needs
Think about the future needs of both parties. Does one party have a reduced earning capacity or limited access to financial resources? Think about retirement, education for children, health issues, and potential changes in living arrangements.
Step 4: Draft the agreement
Sign off on the agreed terms. Include how you will divide assets and debt responsibilities, and whether ongoing financial support will be paid to the financially weaker spouse.
Calculate Your Asset Division in Minutes
Asset split estimator
Use this tool to get a rough estimate of how assets might be divided between two parties. This is a guide only and does not replace legal advice.
List your assets
Enter the estimated current value of each asset. Leave any that do not apply blank.
Estimate your split
- Include assets held in your sole name, joint names, trusts or companies.
- Use current market values where possible, not original purchase prices.
- Remember superannuation, shares, crypto, loans owed to you and valuable items.
- Speak with a family lawyer before making any final decisions or agreements.
This tool provides general information only and does not take your personal situation into account. It is not legal, financial or tax advice. Always obtain advice from a qualified professional.
A binding financial agreement (BFA) is a legal document that can be entered into before, during, or after the relationship. When entered into before marriage, they are referred to as a prenuptial agreement. BFAs are final and enforceable.
How to form a binding financial agreement
There’s a set legal framework for creating a BFA.
Step 1: Communication
Both parties should openly discuss their financial situations, objectives, and concerns regarding the agreement.
Step 2: Disclose finances
Both parties must make a full and frank financial disclosure. This may include bank accounts, stock portfolios, and real estate. You must also factor in debts to understand the net asset pool.
Step 3: Seek independent legal advice
Each party must seek independent legal advice for a legal fee. The lawyers will explain the party’s rights and obligations under the agreement. The party should understand the advantages and disadvantages of entering into the BFA.
Step 4: Draft the agreement
One party’s lawyer usually drafts the agreement. The document outlines terms for asset division and any spousal maintenance arrangements.
Step 5: Sign the agreement
Once both parties are satisfied, the BFA is signed. The signatures must be witnessed by the lawyers who provided the legal advice. Each lawyer must provide a certificate confirming that independent legal advice was given.
Learn more: What Is a Binding Financial Agreement?
3. Consent orders
A financial consent order formalises the division of assets and financial obligations after a relationship ends. It’s approved by the Court, compelling compliance with the agreed terms. This order can cover property and spousal maintenance. Consent orders don’t deal with child support.
How to apply for consent orders
You must fill out an Application for Consent Orders. Having an experienced divorce lawyer will help you to understand the needs and rights of both you and your ex-spouse.
How are assets divided in the Family Court?
A four-step process calculates a just and equitable outcome under the Family Law Act.
Valuation of assets.
Assessing the contributions of both parties.
Determining future needs.
Evaluating the consent order’s impact.
Step 1: Valuation of Assets
The first step of the process is to identify and value the property pool. This includes assets you own jointly and assets and liabilities you own individually. Each party must fully disclose their financial circumstances.
Assets and liabilities that must be considered in the pool include those acquired before and during the relationship. Any marital assets or debts acquired after the relationship ended could also be considered. This is because the asset pool is valued at the time of the settlement, not at the point of separation or divorce.
Step 2: Assessing the non-financial and financial contributions of both parties
This step is about understanding what each of you brought to the relationship. Financial contributions can include wages, government allowances, inheritance, dividends from shares, or any other income you receive. Not all contributions to a relationship are financial.
Non-financial contributions that need to be considered include being a caregiver of children and a homemaker. Other examples may also apply to your situation, such as renovating a property or even indirect contributions from family members. These can include:
Providing childcare.
Contributing to a deposit to purchase a property.
Being a guarantor on a home loan.
Each of these contributions is assessed and compared against the asset pool to determine the first split of assets between the parties.
Step 3: Determining Future Needs
Now that all the assets, liabilities, and contributions to the relationship have been assessed, the settlement must consider each party’s financial future.
Several things need to be considered for each person. These include their age, health, future earning capacity, employment prospects, and financial resources. The Court will also consider:
Who will be responsible for looking after the children of the relationship?
Individual living requirements.
The impact the relationship may have had on each person’s earning capacity.
Step 4: Evaluating the Impact
The final step in the process is for the Court to consider whether their split of the assets and debts is just and equitable for you and your ex-partner. If it’s not satisfied, the Court may make a property adjustment.
Some men believe they will be worse off in a financial settlement even if they have been the primary income earner in the relationship. This is usually untrue, as men tend to rebound quicker financially post-divorce than women. This is because women are often the primary caregivers of children.
What to consider when dividing assets
Debts are split in a financial settlement, too. If one partner is given a more significant portion of the asset pool, they may also take on more debt.
A common challenge couples face is when they get fixated on a percentage they believe they deserve. There is no set percentage in Australia’s Family Law Act. Focus on your needs and contributions.
4. Litigation
Litigation is where the Family Court determines how the couple’s assets and liabilities will be split when agreement is impossible. This is the most lengthy and costly process. It usually requires a court proceeding. Litigation is generally a last resort due to its emotional and financial impact on families.
Court action may be necessary when:
Agreement isn’t possible.
Dispute resolution has failed.
Family violence concerns make mediation unsafe.
What am I entitled to in a divorce settlement?
There is no set percentage under Australian law when dividing assets. This can make splitting your assets and liabilities challenging. Divisions will be different in each circumstance.
What is the average split in a divorce settlement?
A 60/40 split tends to be the most common division in Australian divorce settlements. For many couples, one partner will contribute more financially, while the other may contribute more in caring for children and looking after the home.
In these situations, it is common for the party making direct financial contributions (often a male) to end up with 40% of the assets. The partner who contributed mainly non-financially (usually female), may get 60%. While this may seem unfair at face value, the Court makes adjustments based on the future needs of the individuals.
What determines the average split of an asset pool?
One party often has more earning capacity and income and is therefore deemed able to recover from the divorce settlement more quickly than their ex-spouse. The partner who contributed mainly non-financially to the relationship typically has a lower earning capacity than their ex-spouse. In this case, they would be awarded a higher percentage to address their future financial needs.
A 70/30 split in the division of assets is rarer. However, it can still happen. This usually occurs when the property pool is large (over $10 million), and one partner contributed most of the property.
You may also see a 70/30 split when one partner is in a hurry to finalise the settlement and may want to settle for less than they are entitled to. This is when it is essential to seek advice from an experienced divorce lawyer. They can negotiate for you to help you walk away promptly with an appropriate division.
Which assets are considered in a divorce?
It might surprise some couples what assets and liabilities are considered in a divorce settlement. You often need to consider assets brought into the relationship, acquired both separately and jointly during the relationship, and even assets and liabilities gained after the relationship.
Usually considered in the asset pool are:
Property owned both individually and jointly.
The respective income of each party.
The superannuation of each party.
Debts owing by one or both parties.
Some financial resources may not form part of the property pool, but may still have an effect on a settlement. An example may be an expected pay out from a personal injury claim. If the party hasn’t received the money by the time of the settlement, it may still constitute a future financial benefit.
How can I protect my assets from divorce?
A BFA may enable a party to create a financial agreement during a relationship. When entered into before marriage, a BFA is sometimes referred to as a prenuptial agreement. While some people think a prenup is only used when the marriage is expected to fail, you can compare it to health insurance. Most people don’t expect to fall ill. However, they still have health insurance.
Prenuptial agreements may allow you to establish how current and future assets will be handled in a property settlement. For example, you may purchase property or receive an inheritance post-separation, which you want to retain. With the help of a divorce lawyer, you may organise a financial agreement that accounts for such events.
Can I get divorced without a financial settlement?
Under Australian law, divorce and financial settlements are handled separately. You can file for a divorce without a financial settlement. However, you must settle financial matters within 12 months of divorcing. If you miss this deadline, you might lose your right to a settlement. This isn’t recommended as you may be entitled to more than you think. You also don’t need to wait until you have divorced to start dividing assets. You can seek financial orders as soon as you separate.
Can a divorce settlement be reopened?
You can apply for a property adjustment. Your application for the adjustment must be made within 12 months of your divorce being finalised. If you do not apply within this time limit, you must obtain special permission from the Court.
Divorce property settlement example
It’s human nature to seek out similar situations to understand what we should do and imagine what outcome we might expect. The Australian Government has supplied this case study in the Property and Financial Agreement and Consent Orders Guide issued by the Attorney-General’s Department.
Case study
Drago and Constance are separating. They have been together for 15 years and married for eight years. Drago works full-time and earns $87,000 a year. Constance works part-time and makes $68,000 a year.
They have two children, aged 6 and 4. Using the negotiation guide, they arrived at the following negotiated property settlement proceedings and will seek a property consent order from the Court.
Joint Assets and liabilities
A family home valued at $670,000 with a $250,000 mortgage. Net value: $420,000.
Family car #1 Subaru Forester valued at $24,000 with a $12,000 loan. Net value: $12,000.
Family car #2 Holden Commodore. Net value: $8,000.
Furniture. Net value: $25,000.
Joint savings account. Net value: $15,000.
Westfarmers shares. Net value: $10,000.
Joint transaction account. $1,200, with a $500 overdraft. Net value: $700.
Joint credit card debt. $8,000.
Individual Assets and liabilities
Drago’s Superannuation. Net value: $300,000.
Constance’s Superannuation. Net value: $120,000.
Drago’s savings account. Net value: $20,000.
Drago’s boat. Net value: $5,000.
Identifying their contributions
Both Drago and Constance have worked throughout their relationship. Since having children, Constance has worked part-time to care for the children two days a week. She also takes the children to and from day care and school.
While Drago and Constance try to share caring responsibilities for the children, Drago travels to work. Therefore, Constance is often solely responsible for caring for the children. They also both acknowledge that Constance’s ability to earn superannuation was limited by extended maternity leave and the fact that she has been working part-time.
Based on Constance having the majority of childcare responsibilities, she and Drago have agreed that the property should be split with an adjustment in Constance’s favour.
Considering the section 75(2) factors
Section 75(2) of the Family Law Act guides how the Family Court considers spousal maintenance in a divorce. This section lists factors the Court must consider when determining what is just and equitable in maintenance matters.
Drago and Constance are both in their late 30s and are likely to be able to work until retirement. They agree that the children should live at each of their houses and acknowledge that Constance will likely have significantly more caring responsibilities than Drago.
This will impact Constance’s ongoing ability to work full-time. They agree that Constance should receive spousal maintenance to reflect her lost potential earnings.
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Conclusion
If the prospect of unwinding your financial assets after divorce seems stressful, don’t be worried. There are several ways you can divide property that ensure you’re treated fairly. A good lawyer may help you assess your options and get your entitlement.
Peter was super helpful with all of my legal needs. Super affordable and has a wealth of knowledge to assist with my marriage split. Definitely recommend him to family and friends.
– Kate Gallagher
Seek legal advice
If you need assistance with Australian family law matters, Andrews Family Lawyers can help.
If you need assistance with family law matters, Andrews Family Lawyers can help.
Frequently asked questions
No. You can settle property any time after separation. If you want court-sealed consent orders, file them within 12 months of a divorce or within 2 years of ending a de facto relationship.
Superannuation can be split under the Family Law Act via Consent Orders or a Binding Financial Agreement after getting the fund's valuation and notifying the trustee. A split adjusts super entitlements; it isn't an immediate cash payout and remains subject to preservation rules. Each fund has its own requirements, so correct paperwork matters.
Pre-relationship property is included in the pool but treated as an initial contribution. Its weight depends on the relationship length, changes in value and both parties' contributions. The final division still turns on contributions and future needs.
