When a relationship ends, dividing property is rarely the first thing on anyone’s mind. Many couples split things informally, agree to “sort the rest out later”, and get on with life.
The problem is that family law sets strict time limits for property settlement. Once they pass, your options narrow considerably.
The time limits
If you were married, you have 12 months from the date your divorce order takes effect to apply to the Court for a property settlement.
If you were in a de facto relationship, you have 2 years from the date your relationship ended.
These limits apply whether you’re the person seeking a share of the property or the person who would rather the matter was closed.
Why an informal agreement isn’t enough
An agreement you’ve reached between yourselves isn’t legally binding, even one you’ve both followed for years. Until it’s formalised, either of you can still apply to the Court for a property settlement within the time limit.
That creates risk on both sides. One person may later claim a share of property the other assumed was theirs. The other may lose the chance to claim a share they were entitled to.
There are two ways to formalise an agreement:
Consent orders. You both agree on how property will be divided, and the Court makes orders reflecting that agreement. The Court must be satisfied the division is just and equitable.
A binding financial agreement. This is a private contract under the Family Law Act. For it to be binding, each person must receive independent legal advice before signing.
What counts as property
The property pool usually includes everything either of you owns, individually or jointly, along with your debts. That can include:
the family home and any investment properties
superannuation, which can be split
savings, shares and cryptocurrency
vehicles and household contents
businesses, including interests held through companies and trusts
mortgages, loans and credit card debts
pets, which since June 2025 have been dealt with as companion animals under their own framework
You each have a duty to give full and frank disclosure of your financial circumstances.
Since 10 June 2025, that duty has been set out in the Family Law Act itself.
What changed in 2025
The Family Law Amendment Act 2024 made significant changes to property settlement from 10 June 2025. The steps the Court follows are now set out in the Act. The Court must also consider the economic effect of family violence, where relevant, and the housing needs of any children. These changes apply to new and existing cases, unless a final hearing has already begun.
What if the deadline has already passed?
You can ask the Court for permission to apply out of time. The Court may grant it in limited circumstances, for example where you or a child would otherwise suffer hardship. Permission isn’t guaranteed, and the process adds time and cost. It’s far better to act within the limit.
Your next step
If you’ve separated and haven’t formalised your property settlement, now is the time to get advice. Our family law team can explain where you stand, what a fair settlement could look like, and how to make it binding.
Call (02) 4952 5344 or email enquiries@evansandwislang.com.au to book a consultation.
This article is general information only and isn’t legal advice. Speak with a lawyer about your circumstances.