What is the Typical Asset Split in a Divorce in Australia?

Many people going through a separation want to know what a typical asset split looks like following a divorce. However, under Australian family law, there is no standard formula or predetermined percentage that applies to every case. The outcome of a property settlement depends on a range of factors, including the contributions made by each party and their individual circumstances. In this guide, the team at O’Sullivan Davies explains how property settlements are assessed and the factors that influence the division of assets.

Divorce and Property Settlements Are Separate Matters

Before considering how assets may be divided, it is important to understand that a divorce order and a property settlement are separate legal processes. A divorce legally ends the marriage, but it does not determine how property will be divided between the parties.

It is also important to note that there is no such thing as a “typical” asset split. The outcome of a property settlement will depend on the specific circumstances of the relationship, including the contributions made by each party and whether any factors justify an adjustment in either party’s favour.

The Five-Step Property Settlement Process

The Court applies the same 5 Step process in all property settlement matters. The steps are:

Step 1: Is it appropriate that property settlement orders be made at all? If the answer is yes move to step 2. If no, there will be no division.

Step 2: What are assets, liabilities, and financial resources held by the parties? This will include all assets held in the parties’ names, or entities controlled by them, or held by a third party on their behalf.

Step 3: What financial, non-financial, and parenting and homemaker contributions have the parties made at the commencement of the relationship, during the relationship, and post-separation? Contributions are generally considered on a very holistic basis, and not attributed a dollar value.

Step 4: Are there any factors that warrant either party receiving more of the asset pool, over and above what they have contributed? For example, if one party earns much less, or has primary care of young children, they will likely receive a further adjustment (usually a percentage) in their favour.

Step 5: Is the proposed division of the assets just and equitable?

Speak With an Experienced Divorce Lawyer

If you have questions about a property settlement or would like advice about your entitlements following a separation or divorce, the team at O’Sullivan Davies can help. Contact our experienced divorce lawyers today for practical advice and support tailored to your circumstances.