How is Property Divided After Separation or Divorce in NSW?
When a relationship ends, one of the biggest questions is “What happens to our property now?”
It’s natural to feel uncertain — especially when emotions are high and financial decisions feel overwhelming.
At Wallen Family Law, we help clients across Wollongong and NSW understand their rights and reach fair, practical property settlements that allow both parties to move forward with clarity and confidence.
1. What Counts as ‘Property’ in a Family Law Settlement?
Under the Family Law Act 1975, “property” includes everything of value owned by either or both parties, such as:
The family home or other real estate
Savings, bank accounts and cash
Superannuation
Investments, shares or businesses
Vehicles, boats and personal belongings
Debts, mortgages and credit cards
All assets and liabilities must be disclosed by both parties — even if something is in one person’s sole name.
This process is known as financial disclosure, and it’s a crucial first step in any property division.
2. How the Court Determines a Fair Division
The Family Court (or Federal Circuit and Family Court of Australia) follows a four-step process to decide how property should be divided:
Step 1: Identify and value the asset pool
All property, superannuation, and liabilities are listed and valued — often using appraisals or valuations for homes, businesses or shares.
Step 2: Assess contributions
The Court considers both financial and non-financial contributions, including:
Income and savings during the relationship
Care of children and homemaking
Maintenance or improvements to property
Gifts, inheritances or other external contributions
Step 3: Consider future needs
Adjustments may be made based on factors such as:
Each party’s income-earning capacity
Who will have primary care of children
Age, health, and financial resources
New relationships or responsibilities
Step 4: Ensure the outcome is ‘just and equitable’
The final step asks whether the division is fair overall — taking into account the whole picture of the relationship and each person’s circumstances after separation.
3. Do You Need to Go to Court?
Not always.
Most property settlements can be reached through negotiation, mediation, or consent orders, without ever stepping into a courtroom.
At Wallen Family Law, our approach is to help clients resolve matters constructively — around the table where possible — saving time, cost, and stress.
However, if court proceedings become necessary, we are ready to represent you with strength and clarity.
4. Consent Orders vs. Binding Financial Agreements
Once an agreement is reached, it’s important to make it legally binding. This can be done through either:
Consent Orders (approved by the Court) — cost-effective, enforceable, and commonly used for both property and parenting matters.
Binding Financial Agreements (BFAs) — private agreements prepared by lawyers, usually where parties prefer to avoid court approval.
Each option has pros and cons, and the right choice depends on your situation — we can guide you through both.
6. Getting Professional Advice Early
Every family’s financial situation is unique.
Even if things feel amicable, independent legal advice ensures you understand your entitlements and that any agreement you reach is legally sound.
Our role is to protect your interests while finding the fairest way forward — whether through mediation, consent orders, or litigation if required.
If you’ve recently separated and want to understand your property rights, we can help you take the next step with confidence.
📍 Based in Wollongong, we work with clients across NSW.
💬 Book your free 15-minute consultation today to discuss your options.
Disclaimer: This article provides general information only and should not be relied upon as legal advice. Every family law matter is unique and requires specific legal guidance. Always seek professional legal advice for your specific situation.