How are assets divided in a divorce in Australia

In Australia, the division of assets in a divorce follows the principles of "just and equitable" distribution under the Family Law Act 1975. There is no set formula, but the process generally involves four key steps:

1. Identifying and Valuing Assets & Liabilities

All assets and debts, whether held jointly or individually, are considered. This includes:

• Property (houses, land, investment properties)

• Bank accounts and cash

• Superannuation (pensions/retirement funds)

• Investments (shares, crypto, businesses)

• Vehicles

• Debts (mortgages, loans, credit cards)

Both parties must fully disclose their financial situation.

2. Assessing Contributions

The court considers:

• Financial contributions (e.g., income, inheritance, property owned before marriage)

• Non-financial contributions (e.g., homemaking, parenting, supporting a partner’s career)

• Initial contributions (assets owned before the marriage)

3. Considering Future Needs

Adjustments may be made based on:

• Age and health

• Earning capacity

• Who has primary care of children

• Future financial prospects

4. Ensuring a Just and Equitable Outcome

The court ensures that the final division is fair, considering the circumstances of both parties.

Other Key Points:

• Superannuation is treated as property and can be split.

• Binding Financial Agreements (BFAs) (prenups) can impact the division.

• If an agreement can't be reached, mediation or court intervention may be necessary.

• There is a 12-month limit to file property settlement claims after divorce.