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Dividing property

The law regulating property division, otherwise known as property settlement, is contained in the Family Law Act 1975 (Cth). All references in this section are to this Act unless otherwise stated.

The law sets out how separated couples, whether they were married or de facto (see De facto relationships, Two year time requirement – property disputes), can go about dividing their property.

The purpose of a property settlement is to bring to an end the financial relationship between the parties [see s 81 for married relationships and s 90ST for de facto relationships]. A property settlement should therefore cover all of the property (both assets and liabilities) between the parties and should take into account the whole financial situation of each.

The Court has the power to make property settlement orders which alter the interests of each of the parties to the property between them [see s 79 for married relationships and s 90SM for de facto relationships]. However, before making any orders, whether by consent between the parties or following a trial, there are four main steps that the Court will follow.

Step One

Identifying and valuing the property between the parties

Step Two

Consider the contributions of each of the parties

Step Three

Consider the future needs of each of the parties

Step Four

Consider whether the proposed property settlement is just and equitable

For information about how to work towards an agreement, with these steps in mind, please see Coming to an agreement.

See also the publication by Relationships Australia, A fair share: Negotiating your property settlement

Dividing property  :  Last Revised: Tue Jul 24th 2018
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.