What Is a Fair Property Settlement in Divorce?

What Is a Fair Property Settlement in Divorce? 

When a relationship ends, reaching a fair property settlement is one of the most important — and often most challenging — steps in the separation process. In New South Wales (NSW), what’s considered "fair" isn’t necessarily a 50/50 split. It depends on a wide range of legal, financial, and personal factors. 

At CM Lawyers, we help separating couples understand their entitlements, protect their interests, and reach a legally fair property settlement — whether through agreement or in the Family Court of Australia. 

What Is a Property Settlement? 

A property settlement in NSW is the legal process of dividing assets, liabilities, and financial resources after the breakdown of a marriage or de facto relationship. The term “property” includes: 

• Real estate 

• Bank accounts 

• Superannuation 

• Shares and investments 

• Businesses 

• Vehicles 

• Personal belongings 

• Debts 

It’s important to note that property settlements in NSW are governed by federal family law, which applies the same principles to married and de facto couples.

What Does the Court Consider a Fair Property Settlement? 

There is no one-size-fits-all formula. Instead, the Family Court applies a structured four-step process to determine a just and equitable division of property: 

Step 1: Identify the Property Pool 

All assets and liabilities — regardless of whose name they’re in — are added to the property pool. This includes: 

• Property acquired before, during, or after the relationship 

• Superannuation 

• Inheritances and gifts 

• Debts and liabilities 

Full financial disclosure is required by both parties. 

Step 2: Evaluate Contributions 

The court considers both financial and non-financial contributions, including: 

• Earnings and income 

• Assets owned prior to the relationship 

• Renovations or business support 

• Homemaker and parenting roles 

Even if one partner didn’t earn an income, their role in raising children and managing the household is considered equally valuable. 

Step 3: Assess Future Needs 

The court looks at each party’s future financial needs, such as: 

• Age and health 

• Earning capacity 

• Care of children 

• Access to financial resources 

• New relationships 

If one party is in a significantly weaker financial position post-separation, the court may award them a greater share of the property. 

Step 4: Is the Outcome Just and Equitable? 

This final step checks that the overall result is fair and reasonable for both parties. The court aims to avoid leaving either person in a position of financial hardship. 

Is a 50/50 Split Fair? 

Not always. While some property settlements do result in a 50/50 division, many do not. A fair settlement might be: 

• 60/40 if one party has greater parenting responsibilities 

• 70/30 if one person made substantial financial contributions 

• 55/45 to reflect future needs or health issues 

Every situation is different, which is why expert legal advice matters. CM Lawyers can guide you through property settlement and provide full court assistance if needed. Contact us if you need court assistance regarding property settlement.  

How Long Does a Fair Property Settlement Take? 

The timeline depends on the complexity of your assets, whether there are children involved, and how cooperative both parties are. A negotiated property settlement can take a few months. If you go to court, it can take over a year. 

Can We Agree on a Fair Settlement Without Court? 

Absolutely. In fact, most couples in NSW resolve their property settlement through: 

• Family law mediation 

• Negotiation through lawyers 

• Binding Financial Agreements (BFAs) 

• Consent Orders submitted to court 

Out-of-court settlements are faster, more cost-effective, and give you more control over the outcome. 

Once an agreement is reached, it should be made legally binding to avoid future disputes. 

Resolve property disputes without court stress. CM Lawyers offers expert property settlement mediation in Sydney for separating couples. Fair, fast and cost-effective.  

What Factors Make a Settlement Unfair? 

An unfair settlement might occur if: 

• One party hides or undervalues assets 

• There’s pressure or coercion 

• The asset pool is not fully disclosed 

• One party gives up too much without legal advice 

The court will not approve a consent order or agreement unless it believes the outcome is just and equitable. 

Can You Protect Your Assets Before Separation? 

Yes. If you're entering into a relationship or marriage and want to safeguard your assets, you can create a Binding Financial Agreement (commonly known as a prenup). These agreements can set out how property will be divided if the relationship ends, potentially avoiding disputes later on. 

Do You Need to Be Divorced to Reach a Fair Property Settlement? 

No. You don’t have to wait for a divorce order to finalise your property division. In fact, many couples complete their property settlement shortly after separation. 

However, if you're divorcing, you must apply for a property settlement within 12 months of the divorce being finalised. 

What Happens if We Can’t Agree on What’s Fair? 

If negotiation fails, either party can apply to the Federal Circuit and Family Court of Australia for orders. The court will assess all relevant factors and make a decision for you. 

Court should always be a last resort, as it is: 

• Costly 

• Time-consuming 

• Emotionally draining 

Examples of Fair Property Settlement Outcomes 

Here are some general scenarios (note: outcomes vary case-by-case): 

Why Legal Advice Matters in Determining Fairness 

Without experienced legal guidance, you may: 

• Undervalue your entitlements 

• Accept an unfair deal 

• Lose assets you're legally entitled to 

• Miss legal deadlines 

At CM Lawyers, we work with you to determine what’s fair in your situation, negotiate confidently, and secure a legally binding outcome that protects your future. 

What Makes CM Lawyers Different? 

• Over 20 years' experience in property settlement law in Sydney 

• Personalised advice tailored to your needs 

• Support through mediation, negotiation, or litigation 

• Transparent communication and cost-effective services 

• Strong track record of helping clients achieve fair outcomes 

Contact CM Lawyers for a Fair Property Settlement 

📞 Call us now on (02) 9568 6266 

 📍 Visit us in Marrickville, Sydney NSW 

Let us help you understand what a fair property settlement really looks like — and fight for the outcome you deserve. 

Related Pages: 

• How Is Property Divided in Divorce in NSW?

• Divorce Lawyers in Sydney

• Binding Financial Agreement

• Spousal Maintenance Lawyers

• Child Custody & Parenting Orders