The end of your relationship will bring about a question of who gets what, and how property will be divided.
This is different from divorce itself, and you can sort out property division whether or not you’ve finalised a divorce.
Understanding what is a property settlement, how long does property settlement take, and what the implications are for you and your partner is essential for achieving a fair and equitable division.
When a relationship breaks down, conversations about who owns what can be difficult.
If this is a conversation you and your former partner/spouse are struggling to navigate, or you’re hoping to avoid painful disagreements, Mazengarb Arora Family Lawyers can help.
As family and divorce lawyers Canberra, we understand that this may be one of the most difficult times of your life.
Our Canberra property settlement lawyers can help you achieve a fair division of assets, tailored to your specific situation.
In the following article, we’ll look at what is family law property settlement, how long it takes, what happens afterwards, and how Mazengarb Arora Family Lawyers can help you achieve a fair outcome.
What is settlement of property?
First, what is property settlement in divorce?
Property settlement is the division of property between a married and or a de facto couple who wish to separate.
Property is not only limited to shared houses or apartments, and can extend to any assets and debts owned by both people.
Complex property types like a family farm, inherited assets, or business interests held through trusts and partnerships often require specialist consideration during a settlement.
“Property” can mean family trusts, superannuation, vehicles, shares, insurance policies, investments and debts including mortgages, loans, and credit card debts.
How property settlement works
Property settlement looks different for everyone, but most situations will start with working out what you own and what you owe.
You and your ex will need to list everything in what is known as a financial disclosure, both sides must share full, honest information about all assets and liabilities.
Next, negotiations begin about how it should be shared.
Most separated couples aim to reach an agreement together, ideally with legal advice or through mediation.
This helps avoid the time, cost and stress of going to court.
Once you agree, you can formalise your arrangement in one of a few ways :
- Informal agreement. Simple and flexible, but not legally enforceable. You miss out on things such as tax exemptions for any superannuation splits, protection of your assets that you may accumulate in the future and stamp duty exemption on any property transfers.
- Binding Financial agreement. A written deal that’s legally binding if done properly with advice.
- Consent orders. Your agreement is approved by the Federal Circuit and Family Court, and then it becomes a court order. There is no court hearing, this process is simply paperwork.
- Court decision (if you can’t agree). If negotiations break down, either of you can ask the Federal Circuit and Family Court to decide what’s fair. The court doesn’t follow a fixed rule like “50/50” — instead, it looks at the situation in its entirety to figure out what’s just and equitable based on the contributions made by each party.
In cases where the court is asked to make a decision, a structured approach is used, which generally includes:
- What you each had at the commencement of the relationship;
- Identifying and valuing the current property pool
- Looking at contributions, including direct financial contributions (like income and savings), indirect contributions (renovations, bills, support), and nonfinancial contributions like caring for children or running the household.
- Considering future needs like age, health, earning capacity, and whether either of you has primary care of children.
There’s no strict formula, so each case is assessed on its own merit.
How long does property settlement take after separation?
Property settlement should begin as soon as possible after separation.
If there is no agreement, married couples must start a property settlement application within 12 months of the divorce Order becoming final, while de facto couples must start proceedings within two years of separation.
Acting promptly after the divorce Order becomes final is important, as missing this deadline can mean having to seek the court’s permission to bring a property claim out of time.
If the time period runs out, the parties will need to file an application to continue negotiations/get the court to make an Order, which will also preserve the time period.
But once begun, how long does a property settlement take?
If both parties agree, and decisions can be reached through negotiation/mediation and consent orders.
It is difficult to determine a time frame of how long this will take. There are several factors that may be outside of everyone’s control
What happens after property settlement?
After your property settlement is finalised (whether through consent orders, a binding financial agreement, or a court decision) the focus turns to putting that agreement into effect and closing off the process.
At this point, each party must comply with the terms of the settlement, whether this means transferring title to property, dividing bank accounts, adjusting superannuation (if this is agreed to) or paying out entitlements, as agreed.
If consent orders were made by the Federla Circuit and Family Court, those orders are legally binding and enforceable, which means you or your former partner/spouse must do what the orders say or risk enforcement action.
If someone doesn’t follow the orders, the court can be asked to enforce them or make additional orders to ensure compliance.
This comes with the possibility of a cost order for the non-complying party.
Once all transfers, payments and documentation are completed, the settlement is effectively implemented and the financial aspects of your separation are resolved, allowing both parties to move forward.
Protect what matters with Mazengarb Arora Family Lawyers
At Mazengarb Family Arora Family Lawyers, we’re not just legal professionals. We’re your partners through one of life’s most challenging moments.
With years of experience in family law, our team offers a compassionate, client-focused approach that delivers the best possible outcomes.
Whether you are navigating separation, property settlement, or any family law issue, our goal is to guide you with clarity, minimise conflict, and achieve lasting results so you can move on with your life.
Book a consultation with us today.
