There is no automatic 50/50 split in Australia. Since 10 June 2025 the steps are set out in the Family Law Act: identify all property and debts, assess each person's financial and non-financial contributions, assess each person's current and future circumstances (such as income, health, caring for children and their housing needs, and the effect of any family violence), and only make orders that are just and equitable. The actual division varies widely depending on circumstances. Married and de facto couples follow the same process (de facto couples in Western Australia are covered by WA law).
What counts as an asset?
Everything: the family home, investment properties, superannuation, savings, shares, vehicles, business interests, and debts. The total asset pool includes assets held jointly and individually by both parties. Superannuation is treated as property and can be split even if it is in one party's name only.
What changed on 10 June 2025
The Family Law Amendment Act 2024 changed how property is divided when a relationship ends. The changes apply whether you settle by agreement or go to court, and to court cases already underway unless the final hearing had started. Final orders made before 10 June 2025 are not changed. In general terms:
- The steps are now written into the law. The court must identify all property and debts, assess each person's contributions, assess each person's current and future circumstances, and only make orders that are just and equitable. Couples negotiating outside court are expected to follow the same process.
- Family violence can affect the split. Where relevant, the economic effect of family violence must be considered - both on what each person was able to contribute (for example, if one person was not allowed to work) and on their current and future circumstances (for example, ongoing counselling costs). Economic or financial abuse, such as one person controlling all the money, is now expressly recognised as family violence.
- Housing for children counts. The court considers the need of a parent caring for a child under 18 to provide appropriate housing for that child.
- Wastage and debts count. The court considers material wastage of property or money caused intentionally or recklessly by either person, and the debts each person has taken on and why.
- Full financial disclosure is a legal duty. Both people must give each other all relevant financial information and documents. The duty is now in the Family Law Act itself, it continues until the matter is resolved, and the court can take a failure to disclose into account.
- Family pets are now dealt with under their own set of rules.
This is general information, not legal advice, and we are mortgage brokers, not lawyers. How the changes apply to you depends on your circumstances, so speak with a family lawyer before you agree to a split. If you have experienced family violence, including financial control, tell your lawyer - and you can call 1800RESPECT on 1800 737 732 at any time. Sources: Attorney-General's Department fact sheet; Federal Circuit and Family Court of Australia.
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Book a confidential chatHow finance fits in
Once the split is agreed, the finance makes it happen - refinancing to fund a buyout, selling to release equity, or securing new loans for independent purchases. Knowing your borrowing capacity before finalising the split ensures the agreement is actually implementable.
Are inheritances included in the asset pool?
Generally, yes. Inheritances received during the relationship are usually included.
However, the timing and how the inheritance was used can affect the weighting. An inheritance received early in a long relationship and mixed with joint assets is treated differently from one received just before separation. Your lawyer can advise on your specific circumstances.
Are debts shared equally in a divorce?
Not automatically. Debts are part of the asset pool and are allocated as part of the settlement.
Joint debts are typically shared proportionally with the asset split. Individual debts may be treated differently depending on when and why they were incurred. Debts taken on after separation are usually the responsibility of the person who incurred them.
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.
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