In Australia, property division following a divorce or de facto separation (including same-sex couples) is governed by the Family Law Act 1975 (Cth). The process is based on fairness rather than a strict 50/50 split, and applies to:

• Married couples divorcing.
• De facto couples, including same-sex relationships, who have lived together for at least two years or have a child together.

If parties cannot agree, the Federal Circuit and Family Court of Australia (FCFCOA) can make property settlement orders.
 

1. Identifying the Property Pool

The first step is to list all assets and liabilities of both parties, including:
✅ Houses, cars, businesses, superannuation, investments.
✅ Debts such as mortgages, credit cards, and loans.
✅ Assets held before, during, and after the relationship.
✅ Any gifts and inheritances received.

2. Assessing Contributions of Each Party

The court considers financial and non-financial contributions, including:
💰 Financial contributions: Income, property ownership, inheritances.
🏡 Non-financial contributions: Homemaking, childcare, unpaid work in a family business.
🛠️ Initial contributions: Property owned before the relationship.
👶 Parental responsibilities: If one partner sacrificed career growth to raise children, this is factored in.

3. Considering Future Needs

The court assesses:
🔹 Age and health of each party.
🔹 Income and earning capacity.
🔹 Care responsibilities for children.
🔹 Financial disparity between partners.

A party who has a greater need (e.g., the primary caregiver of children) may receive a larger share.

4. Ensuring a Just and Equitable Outcome

The court does not apply a strict 50/50 split. Instead, it determines what is fair based on:
📌 Each partner's contributions.
📌 Future financial needs.
📌 The overall fairness of the division.

Time Limits for Property Settlement

• Married couples: Must apply within 12 months of divorce.
• De facto and same-sex couples: Must apply within 2 years of separation.

Superannuation and Property Settlements

Superannuation is treated as property and can be split, but not converted to cash until retirement age.

Binding Financial Agreements (BFAs)

Couples (including same-sex and de facto) can sign Binding Financial Agreements (prenups) before, during, or after a relationship to outline property division.

Can a Same-Sex Partner Claim Property Settlement?

Yes. Since 2009, same-sex de facto couples have had the same legal rights as heterosexual de facto couples under Australian law. They can apply for property settlements in the same way as married couples.

Conclusion

Property division in marriages, de facto relationships, and same-sex relationships is based on fairness, contributions, and future needs. If parties cannot agree, the court ensures a just and equitable outcome. Seeking legal advice is recommended for complex cases.