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How Splitting Assets in Divorce Works in Australia: Key Factors Explained
Divorce can be a challenging and emotionally draining process, especially when it comes to dividing assets. Whether you’ve been married for years or in a de facto relationship, the question of how assets are split during a divorce is often at the forefront of separation discussions. In Australia, the process of splitting assets is not […]
How Splitting Assets in Divorce Works in Australia: Key Factors Explained
Divorce can be a challenging and emotionally draining process, especially when it comes to dividing assets. Whether you’ve been married for years or in a de facto relationship, the question of how assets are split during a divorce is often at the forefront of separation discussions. In Australia, the process of splitting assets is not as simple as a 50/50 division. It is determined based on several factors, including contributions, future needs, and the length of the relationship.
Aylward Game Solicitors, led by Accredited Specialist Family Lawyer Ian Field, brings nearly 50 years of collective legal experience to help individuals navigate the complexities of asset division during a divorce. With offices in Brisbane, Gold Coast, and Sunshine Coast, Aylward Game Solicitors are committed to offering practical, clear, and fair solutions during the divorce process.
In this blog post, we’ll guide you through how assets are split in a divorce in Australia, discussing the Family Law Act 1975, common asset division scenarios like the 60/40 and 70/30 divorce splits, and how Ian Field’s expertise can help you achieve the best outcome for your situation.
What Is Asset Division in a Divorce?
Asset division during a divorce involves the process of dividing all assets, liabilities, and financial resources between the parties involved in a marriage or de facto relationship. In Australia, the Family Law Act 1975 governs the property settlement process, which ensures that asset division is just and equitable.
Contrary to popular belief, there is no fixed rule for how assets should be divided, and a 50/50 split is not always the default outcome. The division depends on various factors, including each party’s financial and non-financial contributions to the relationship, as well as their future needs.
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Factors Considered in Asset Division
The Family Law Act provides a framework for asset division based on four key factors:
- Contributions to the Relationship:
- Financial Contributions: These include income, savings, and any financial contributions made toward the acquisition, conservation, or improvement of property.
- Non-Financial Contributions: These contributions might include homemaking, child-rearing, and other non-financial contributions that add value to the relationship and property.
- Indirect Contributions: Contributions from family members or other external parties may also be taken into account.
- Future Needs:
The court considers the future needs of both parties, including their ability to support themselves post-divorce. Factors like age, health, income potential, and care responsibilities for children can influence the asset split. For example, if one party has primary custody of children and is unable to earn as much due to caregiving responsibilities, they may receive a larger share of the assets. - Length of the Relationship:
The longer the relationship, the more likely it is that the assets will be divided equally. Shorter relationships may see a division based more heavily on each party’s financial contributions. - Just and Equitable Outcome:
The overall goal is to ensure that the outcome is fair and reasonable based on the circumstances of both parties. This ensures that neither party is left at a significant disadvantage after the divorce.
Common Asset Split Scenarios: 60/40 and 70/30 Divorce Settlements
In Australia, the division of assets is not always a simple 50/50 split. Several factors influence the final settlement, and in some cases, a 60/40 or even a 70/30 division is considered more appropriate.
- 60/40 Split Divorce Australia:
A 60/40 split is often seen in cases where one party has contributed significantly more financially, or where one party has primary care of children. For instance, if one spouse has taken on the majority of child-rearing responsibilities, they may be entitled to a larger share of the marital assets, even if they did not earn as much during the relationship. - 70/30 Divorce Settlement Australia:
A 70/30 split is less common but may arise in cases where there is a significant imbalance in contributions or future needs. For example, one partner may have made substantial financial contributions to the relationship while the other may have limited earning capacity due to caregiving responsibilities. In such cases, the court may award a 70% share to one party to ensure that the outcome is just and equitable. - 50/50 Divorce Settlement:
While a 50/50 split is often seen as the most common solution, it is not guaranteed. In many cases, especially in long-term marriages or de facto relationships, an equal division of assets may be seen as fair. However, this is not always the case, as future needs and contributions will heavily influence the final decision.
Source: A Complete Guide to Splitting Assets in Divorce in Australia (Legal Insights for 2025)
Superannuation and Asset Division
Superannuation, or retirement savings, is considered an asset in a divorce and is subject to division under the Family Law Act. Superannuation is not treated as cash and cannot be accessed until the relevant conditions are met (e.g., retirement). However, it can be split between the parties as part of the property settlement.
In cases where one party has significantly more superannuation than the other, this may be taken into account during the asset division process. This can be especially important when one partner has sacrificed their career to support the family or care for children.
How Is the Asset Pool Valued?
The first step in any property settlement is to identify and value the asset pool. This includes all assets owned by both parties, such as:
- The family home
- Cars, boats, and other vehicles
- Bank accounts
- Investments and shares
- Businesses
- Personal property such as jewellery, artwork, and furniture
- Debts, including mortgages, loans, and credit card debt
- Superannuation
Once all assets and liabilities are identified and valued, the court or lawyers will assess how these should be divided based on the contributions and future needs of both parties.
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The Role of Ian Field and Aylward Game Solicitors in Asset Division
Ian Field, as an Accredited Specialist Family Lawyer, has extensive experience in handling property settlements and divorce cases. With a background in both the UK and Australian legal systems, Ian brings practical and expert advice to his clients. Ian’s empathetic approach ensures that clients feel supported throughout the entire process, and he works diligently to achieve the best possible outcome for each individual.
At Aylward Game Solicitors, we understand the emotional and financial toll that divorce can take. Our team is committed to providing clear, reliable, and expert legal advice on property settlements and asset division. We guide our clients through every step of the process, ensuring that all relevant factors are considered and that a just and equitable outcome is reached.
How Ian Field Can Help You With Your Divorce Asset Split
Whether you are negotiating an informal agreement or pursuing formal legal action, Ian Field can assist you in navigating the complexities of asset division. Ian’s experience in both negotiation and court proceedings means that he can help you reach a fair outcome, whether through mediation or litigation.
Key Services Offered by Aylward Game Solicitors:
- Negotiating property settlements
- Drafting Binding Financial Agreements (BFA)
- Helping clients navigate consent orders
- Providing legal advice on superannuation splitting
- Offering mediation services to avoid court proceedings
Protect Your Rights, Preserve Your Peace
Contact Our Accredited Family Law Specialists.
Conclusion:
Dividing assets during a divorce is a complex and often stressful process, but with the right legal guidance, it can be handled efficiently and fairly. At Aylward Game Solicitors, we are here to help you understand your rights and ensure that you receive a fair share of the assets. With nearly 50 years of combined legal experience, Ian Field and the team at Aylward Game Solicitors are ready to provide expert legal advice for your property settlement.
If you are currently facing a divorce and need assistance with asset division, don’t hesitate to contact us at 07 3236 0001 or visit our website at Aylward Game Solicitors for more information on how we can help you navigate this challenging time.
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