Separation: Why You Shouldn’t Delay Your Property Settlement

When couples separate, it’s common to feel like you need to wait before making decisions about your property settlement and many people believe they must wait 12 months before starting the process — but that’s not true. You can begin sorting out property settlements, spousal maintenance and child support arrangements straight away.

Why Acting Early Matters

Starting early has real benefits:

• You can protect your assets such as funds in offset accounts from being spent or moved.

• You can reduce conflict by ensuring transparency of assets through financial disclosure from the start.

• You can avoid long delays tracking funds spent in the period post separation that make negotiations harder down the track.

The New Risk: Add-Backs Are No Longer Accepted

A recent decision, Shinohara & Shinohara [2025], confirmed that Courts will generally no longer “add back” money or assets that have been spent after separation.

In the past, if one partner withdrew funds, sold assets, or used joint money after separation, the Court could notionally “add back” those amounts into the asset pool for division. Now, only property that exists at the time of trial or your property settlement can be divided. The Court still takes into account the use of funds in the period post separation and an adjustment may be made in one party’s favour, however, the Court will not grant a dollar for dollar addback of the funds spent into the property pool.

That means acting quickly to document and protect assets is more important than ever.

Time Limits Still Apply

While you don’t have to wait to start, there are strict deadlines once a relationship ends:

• Divorce: You must start property or spousal maintenance proceedings within 12 months of your divorce becoming final.

• De facto relationships: You must apply within 2 years of separation.

Missing these deadlines can mean losing the right to make a claim without special permission from the Court.

Key Takeaways

You don’t need to wait 12 months to get started on your property settlement — and delaying can put you at real risk, especially now that add-backs are good as gone. Getting early advice ensures your rights are protected and your assets preserved.

Need Help?

At Wallen Family Law, we provide clear, practical advice to help you take the right steps after separation.

📞 Book a free 15-minute chat with us today to understand your options.