Property settlement divides assets and debts between separating couples. The process is not automatic and time limits apply. Understanding how it works helps you protect your position.
Property settlement is the legal process of dividing assets and debts between people who have separated. In Queensland, property settlement is governed by the Family Law Act 1975 and applies to both married couples and de facto couples. Settlement can be reached by agreement or through the Federal Circuit and Family Court of Australia if agreement is not possible.
The court's approach to property settlement follows four steps. First, the court identifies and values the asset pool, which includes all assets and liabilities of both parties, regardless of whose name they are in. Second, the court looks at the contributions each party made to the relationship, including financial contributions and non-financial contributions such as homemaking and parenting. Third, the court considers future needs, including each party's income, earning capacity, age, health, and care of children. Fourth, the court considers what is just and equitable in all the circumstances.
There is a time limit on property settlement. For married couples, you have twelve months from the date your divorce is finalised to commence proceedings. For de facto couples, you have two years from the date of separation. Acting outside these limits requires special permission from the court, which is not guaranteed. If you are approaching either deadline, seek advice immediately.
Many property settlements are reached by agreement without going to court. Once an agreement is reached, it can be formalised through consent orders filed with the court or a binding financial agreement. Formalising the agreement is important because an informal arrangement does not prevent either party from later making a claim. Without a formalised settlement, your assets remain at risk.
Superannuation is treated as property in Australian family law and is included in the asset pool. Superannuation can be split between parties through a superannuation splitting order. This is a separate process from dividing other assets but is handled as part of the same proceedings.