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Property settlement after separation: the four steps a NSW court actually follows

Almost everyone believes the starting point is half each. It is not. Here is the process the courts genuinely work through — and what changed when family violence became an express part of it in June 2025.

Common questions

Dividing property after separation

Is property split 50/50 after separation in Australia?

No. There is no rule that property is divided equally. The court works through a structured process that looks at what each person contributed and at their current and future circumstances, and it only makes an order at all if it is satisfied that doing so would be just and equitable. An equal split is one possible outcome, not the starting point.

How does family violence affect a property settlement in NSW?

Since 10 June 2025 family violence is an express consideration in the property framework. The court can take into account the effect of family violence on a person's ability to make financial and non-financial contributions and to contribute to the welfare of the family, and it can separately consider the economic effect of family violence on that person's current and future circumstances. Economic and financial abuse is also more clearly recognised within the definition of family violence in the Family Law Act.

How long do I have to apply for a property settlement?

If you were married, you generally have 12 months from the date your divorce order takes effect. If you were in a de facto relationship, you generally have two years from the date of separation. In limited circumstances the court's permission can be sought to apply out of time, but that permission is not guaranteed. Strict time limits apply, so it is worth getting advice early rather than assuming you have time.

Do I have to go to court to divide property after separation?

No. Most separating couples reach agreement without a judge deciding the outcome. An agreement can be formalised by applying to the court for consent orders, or by entering a binding financial agreement. Formalising the agreement matters, because an informal arrangement or a private handshake generally does not prevent a later claim and does not give access to the duty and stamp duty concessions that properly drawn orders can.

Do I have to disclose all of my finances?

Yes. The duty of disclosure is now written into the Family Law Act itself. Each person must give the other and the court all relevant financial information and documents, and the duty starts when you are preparing to begin a property or financial proceeding and continues until the matter is resolved. Consequences of non-compliance can include costs orders, punishment for contempt of court, and the court taking the failure into account when deciding what orders to make.

Is superannuation included in a property settlement?

Yes. Superannuation is taken into account in a property settlement and a superannuation interest can be split between separating partners by court order or by agreement. Splitting superannuation does not turn it into cash: the amount that moves across remains superannuation for the receiving person and stays subject to the usual rules about when superannuation can be accessed.

References

Where this information comes from

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