How the Court Treats Post-Separation Property Purchases

It’s common for separated partners to move on financially — buying a new home, investment property, or car before finalising their family law property settlement.
But what happens to those new assets?
Are they part of the “property pool”? Can the other party claim a share?

At Wallen Family Law, we help clients across Wollongong and NSW understand how the Court treats post-separation acquisitions and how to protect themselves from unintended consequences.

1. The General Rule: The Court Looks at Current Assets

Under the Family Law Act 1975, the Court identifies and values all property owned by either or both parties at the time of the hearing or settlement, not just what existed at separation.

That means even assets acquired after separation — including homes, businesses, cars, shares, or super contributions — may still form part of the property pool to be divided.

The Court will look at when the new property was acquired, whether it was funded by resources that existed during the relationship and whether the other party has made contributions to that property in the period post separation.

2. When a Post-Separation Property Might Be Included

A post-separation purchase is more likely to be treated as part of the pool if:

• It was funded (even partly) using joint funds, redraws, or sale proceeds of existing marital assets;

• It relied on the credit or guarantee of the other party;

• It replaced or converted an existing asset (for example, one property sold and another purchased with the proceeds).

3. When a Post-Separation Property Might Be Excluded

Where a property is purchased entirely from new, independent resources — for example, post-separation income, inheritance, or savings accumulated long after separation — the Court may treat it differently.

While it can still technically form part of the matrimonial asset pool, the Court will usually take a two pool or asset by asset approach when assessing the post separation property. The Court often recognises it as a post-separation contribution, primarily giving greater credit to the party who acquired it.

4. Case Example — Contributions After Separation

In Bremner & Bremner [2014] FamCA 59, the husband purchased property after separation using post-separation earnings.
The Court included the property in the overall asset pool but made an adjustment in the husband’s favour, recognising that his sole efforts and income created that asset after the relationship had ended. However, the court balanced this with the wife’s non-financial contributions as a homemaker and primary carer of the children​.

This illustrates the Court’s flexible approach: inclusion in the pool doesn’t necessarily mean equal division of that asset.

5. Impact of Delay and Disclosure

The longer property matters remain unresolved after separation, the more complicated things can become.
If one party continues to acquire or dispose of assets, it can:

• Make valuations outdated;

• Create disputes about post-separation contributions;

• Raise questions about financial disclosure or hidden assets.

That’s why early settlement — or at least a clear interim agreement — helps avoid uncertainty and resentment.

6. Protecting Yourself if You’re Buying Property After Separation

If you’re planning to purchase a property before your financial settlement is finalised, seek legal advice first — your lawyer can help structure the purchase to avoid claims on it later.

At Wallen Family Law, we work with clients early in the separation process to safeguard new investments, avoid tax or disclosure issues, and reach timely, equitable settlements.

Wallen Family Law — Family Law, Made Clear.

If you’ve separated and are considering buying property before your settlement is finalised, we can help you structure the purchase and protect your interests.
📍 Based in Wollongong, assisting clients across NSW.
💬 Book your free 15-minute consultation today for clear, practical advice.