Divorce isn’t just an emotional split; it’s a financial one, too.

Dividing up assets, figuring out who gets what, and ensuring everyone’s needs are met is where property settlement lawyers step in. In Australia, property settlements after divorce don’t always mean a 50/50 split. Instead, the Federal Circuit and Family Court of Australia looks at a range of factors to find a fair outcome for both sides, whether you’re married or in a de facto relationship.

In this article, our family lawyers will break down the property settlement process and answer common questions like, “How does the court calculate property settlements?” and “Are there time limits?” From understanding the Court’s approach to dealing with superannuation and post-separation assets, you’ll get a clear picture of what’s involved in reaching a divorce property settlement.

Superannuation

We mentioned superannuation just above, but it deserves a little more attention, because in Australia, superannuation is treated as part of the property in a divorce. This might come as a surprise to many because unlike cash or physical assets, super can’t just be split and spent, but it’s still a significant part of the property settlement process. Superannuation is often one of the most valuable assets an adult in Australia has and it is actually included as part of the property pool, meaning it’s factored into the overall division of assets.

Superannuation can be divided in a few ways, either by “splitting” the super itself or by adjusting the distribution of other assets to keep things fair. For instance, if one partner has a high super balance and the other has less, the court might allocate more of the property or other financial resources to the partner with less super. The idea is to reach an equitable distribution that considers each person’s future financial needs.

If you’re uncertain about how your super will be handled, it can help to seek independent legal advice to ensure your financial arrangements and rights are protected.

Dealing with post-separation assets and spending

After separation, you might assume that any new assets you acquire or money you spend is your own business, but in the eyes of the Court, it’s not always that simple. The court may still consider assets bought or money spent after separation when determining an equitable division in the property settlement.

For example, if one party makes a large purchase or has a significant windfall after separation, this could still be included in the property pool. Similarly, if one partner starts depleting shared resources or financial resources to benefit only themselves, the court may consider this as reducing the overall assets available for settlement. This will differ on a case-by-case basis, so ensure that you seek advice.

When it comes to post-separation spending, courts aim to protect both parties from actions that might unfairly impact the financial settlement. If you’re concerned about recent spending or asset disposal by your ex-partner, it’s a good idea to document any significant transactions and discuss them with an experienced family lawyer to ensure your rights are safeguarded in the settlement process.