How is property divided?

16/07/2014

Spouses who are getting divorced can finalise a property settlement at any time after separation and before either spouse has applied for a divorce.

Once a divorce has been obtained, however, you only have one year in which to apply to the court for an order for a property settlement. If more than a year has passed since obtaining your divorce, it is necessary to obtain the court’s permission to bring the application.

In most cases, parties are able to agree on how property will be divided. Parties can seek to have their agreement formalised by asking the court to make a consent order in the terms of the agreement.

Sometimes spouses cannot agree on how property will be divided and it is necessary to apply to the court. The court will consider all of the property and financial resources of the parties. This includes things like real estate, investments, interests in companies, family trusts, life insurance and superannuation. In making a fair division of property, the court will consider each spouse’s contribution to the family, and contribution to the acquisition, conservation and improvement of the property. The court will also consider both the present and future income of each spouse, as well as their needs and responsibilities.