By Karina Ralston, Principal and Family Law Team Leader, Coleman Greig Lawyers · Accredited Specialist, Family Law (NSW) | Last reviewed: October 2026
Couples who separate in Australia have usually built a life together for close to a decade. The Australian Bureau of Statistics reported a median of 9.3 years from marriage to separation for divorces granted in 2024. By then, a household often has a mortgage, superannuation in two names, perhaps a family company or trust, and an investment property or two. Dividing all of that is rarely just a matter of splitting a bank balance.
Protecting your position in a complex settlement is less about hiding or moving assets, which tends to backfire, and more about understanding how the law values what exists, documenting it properly, and avoiding steps that weaken your case. The rules also changed significantly on 10 June 2025, so advice or assumptions from before then may be out of date.
How Courts Divide Property After the June 2025 Changes
Amendments to the Family Law Act 1975 that took effect on 10 June 2025 wrote into the Act the process courts had long followed. According to the Attorney-General’s Department fact sheet, courts must now identify all existing property and debts, assess each party’s contributions, consider each party’s current and future circumstances, and make only orders that are just and equitable. Couples negotiating outside court are expected to follow the same process. The same framework applies to de facto couples.
| Step | What the court looks at | Evidence that usually matters |
| 1. The asset pool | Property and liabilities that exist now, held jointly, separately, or through entities a party controls | Title searches, statements, valuations, trust deeds, company financials |
| 2. Contributions | Financial and non-financial contributions, including homemaking and parenting, and the effect of any family violence on a party’s ability to contribute | Records of who paid what and when, inheritances, gifts, care arrangements |
| 3. Current and future circumstances | Age, health, earning capacity, care of children, housing needs, wastage, and the economic effect of family violence | Income history, medical evidence, childcare arrangements |
| 4. Just and equitable | Whether the overall result is fair in the circumstances | The combined picture from steps 1 to 3 |
Two of the changes matter most for people worried about the asset pool shrinking during a dispute.
Add-backs are effectively gone. Courts used to “add back” money one party had spent, for example on legal fees or a large withdrawal, as if it were still in the pool. In Shinohara & Shinohara [2025] FedCFamC1A 126, the Full Court confirmed that under the amended Act only property that still exists can be divided. As Mills Oakley’s April 2026 analysis explains, money that has been spent is now considered as part of a party’s current and future circumstances instead, often under the new factor dealing with wastage. That makes evidence about how and when funds were spent more important, not less.
Financial abuse now counts. The definition of family violence now expressly includes economic and financial abuse, such as controlling access to money or concealing assets. Courts must consider its economic effect on contributions and on a party’s future circumstances. As Bartier Perry notes, the person relying on it still has to show how the conduct affected their ability to contribute.
Full and Frank Disclosure: The Obligation That Shapes Everything
Each party must disclose all information relevant to the financial case. Since June 2025, that duty sits in the Family Law Act itself rather than only in the court rules. The duty is ongoing, so it continues until the matter is resolved, and it applies whether the case is in court or being negotiated.
In a complex matter, disclosure goes well beyond payslips and a bank statement. Parties with business or trust interests should expect to produce:
- Trust deeds, recent trust tax returns, and records of distributions over several years
- Company financial statements, tax returns, and loan accounts, including any Division 7A loans
- Self-managed superannuation fund statements, member balances, and investment strategies
- Property valuations and any recent offers or appraisals
- Records of large transactions around the time of separation
Courts look at the substance of control, not just whose name is on a document. A trust that one party effectively controls can be treated as part of the asset pool or as a financial resource. Concealing assets or delaying disclosure risks costs orders, adverse findings about credibility, and the possibility that a settlement is later set aside. Readers wanting to understand how lawyers sort relevant records from irrelevant ones may find it helpful to look at how family law attorneys assess case details, since the same discipline applies to a financial file.
Deadlines That Can Cost You the Claim
Married couples generally have 12 months after a divorce order takes effect to start property proceedings. De facto couples generally have two years from the end of the relationship. After those dates, a party needs the court’s permission, which is not guaranteed. A divorce can be granted quickly once spouses have been separated for 12 months, so the property deadline can arrive sooner than people expect.
Practical Steps While Negotiations Continue
A separation does not freeze the finances. In the weeks and months after it, a few steps help protect both the asset pool and your evidence:
- Keep your own records from the separation date. Download statements for joint accounts, redraw facilities, credit cards, and super before access changes.
- Open an account for your income and expenses. Keep spending reasonable and documented, since large or unusual withdrawals can be raised later as wastage.
- Watch for redraws and asset sales. If there is a genuine risk that property will be sold, mortgaged, or moved, the court can make urgent orders to restrain dealings. Legal advice early is important here.
- Think before moving assets. Transferring property to relatives or a new entity to keep it out of the pool is likely to be uncovered through disclosure and can damage your credibility and outcome.
- Review your will and super nominations. In NSW, divorce revokes gifts to a former spouse in a will under section 13 of the Succession Act 2006, but separation alone does not. Until the divorce, an existing will and any binding death benefit nomination may still benefit your former partner.
Family pets are now dealt with under specific rules too. The Act treats companion animals separately from other property, and courts weigh factors such as who cared for the animal, attachment to it, and any history of threats or harm. Courts cannot order joint ownership or shared possession, so one party will keep the pet or it will be dealt with in another way.
Settling Without a Trial in Western Sydney
Most property disputes resolve without a judge deciding them. Before filing a financial case in the Federal Circuit and Family Court of Australia, parties are generally expected to follow pre-action procedures, including exchanging disclosure and trying dispute resolution such as mediation, unless an exception applies, for instance where family violence or urgency makes that unsafe or impractical.
An agreement can be formalised in two main ways:
- Consent orders, filed with the court and reviewed to confirm the division is just and equitable. Once made, they are enforceable court orders and can include superannuation splitting.
- A binding financial agreement, a private contract that requires each party to receive independent legal advice and meet strict formal requirements to be enforceable.
For families in Western Sydney, financial matters that do go to court are often managed through the Federal Circuit and Family Court registry in Parramatta. A family lawyer Parramatta clients can meet locally can explain how case management works in that registry and whether arbitration or mediation could resolve a complex pool sooner.
Common Questions
Is property split 50/50 in Australia?
No. There is no automatic equal split. The court assesses contributions and future circumstances and then decides what is just and equitable, which may or may not be equal.
Can my former partner claim assets held in a family trust?
Possibly. If a party controls the trust or it effectively operates for their benefit, its assets may be included in the pool or treated as a financial resource.
Do the June 2025 changes apply to my existing case?
Generally yes, unless the final hearing had already started before 10 June 2025. Existing orders remain in force.
Authorities & Sources
- Family Law Act 1975 (Cth), current compilation
- Attorney-General’s Department: Family law (property) changes from 10 June 2025
- Australian Bureau of Statistics: Marriages and Divorces, Australia, 2024
- Mills Oakley: The End of Addbacks (April 2026)
- Bartier Perry: Amendments to the Family Law Act commencing 10 June 2025
- Succession Act 2006 (NSW), section 13
Disclaimer
This article provides general information about property settlements under Australian family law as at October 2026. It is not legal advice, and reading it does not create a lawyer-client relationship. Every property settlement depends on its own facts, and time limits apply. Anyone separating should obtain advice from a qualified family lawyer about their circumstances.
