Family Law: Property Settlement Changes

The court continues to apply a four-step process when determining property settlements. The 2026 reforms have modified how steps two and three are applied:

Financial contributions remain a central consideration and include:

Under the 2026 reforms, the court must now expressly consider the economic value of each financial contribution — not merely its nominal dollar amount. This means that a contribution made early in a long relationship may be assessed differently to the same dollar amount contributed shortly before separation.

The 2026 reforms introduced a new express provision requiring courts to give equal weight to financial and non-financial contributions when assessing the overall contributions of each party. This is a significant departure from the previous approach, under which non-financial contributions were often assessed as secondary to direct financial contributions.

The 2026 reforms introduced a new "economic impact" factor at step three of the property settlement process. This factor requires the court to consider the long-term financial impact of the relationship on each party's earning capacity and financial independence — including:

In practice, the economic impact factor is likely to result in larger adjustments in favour of the primary carer in long relationships where one party significantly reduced their workforce participation to care for children or support the other party's career.

The 2026 reforms introduced an express requirement for courts to consider whether family violence — including coercive control — affected a party's ability to make contributions or negotiate a fair settlement. This is particularly significant in cases where:

If family violence or coercive control affected your relationship, it is important to raise this with your solicitor at the outset. Rob Williams can advise you on how these factors may affect your property settlement and what evidence may be relevant.

Superannuation splitting allows a portion of one party's superannuation interest to be transferred to the other party's superannuation fund. It does not allow superannuation to be paid out as cash — the split amount remains in the superannuation system until the receiving party reaches preservation age.

Self-managed superannuation funds present unique challenges in property settlements because both parties are often members and trustees of the same fund. The 2026 reforms introduced new rules specifically addressing SMSFs:

If you and your former partner are members of an SMSF, it is essential to obtain specialist legal advice before taking any steps in relation to the fund after separation. Rob Williams can advise you on your obligations and rights in relation to an SMSF as part of your property settlement.

Where parties can reach agreement on the division of property, the preferred method of formalising that agreement is through consent orders filed with the Federal Circuit and Family Court of Australia. Consent orders are legally binding and enforceable — unlike informal agreements, which provide no legal protection if one party later changes their mind.

Where parties cannot reach agreement, either party may commence proceedings in the Federal Circuit and Family Court of Australia. The FCFCOA has registries in Newcastle and Sydney. Contested property proceedings are typically resolved through a series of court events — including a first return date, a conciliation conference, and if necessary, a final hearing before a judge.

Contested proceedings are time-consuming and expensive. Rob Williams will always explore negotiated resolution options — including mediation and collaborative law — before recommending contested proceedings. However, where one party is being unreasonable, hiding assets, or refusing to engage in the process, court proceedings may be the only option to protect your interests.