Going through a divorce or separation is never easy—emotionally, mentally, and financially. And when it comes to dividing assets, things can get even more overwhelming. But property settlement doesn’t have to be another battle. With the right guidance and accurate family law valuations, you can go through this process smoothly and fairly.

If you’re currently at a loss on where and how to start, this blog will guide you through the process, step by step. From understanding the basics of property settlement to dividing assets, navigating the common challenges couples face, and leveraging an expert family law valuation to help you get a fair outcome. Let’s dive in.

Understanding Property Settlement in Family Law

Ending a relationship can be one of the toughest and most draining life challenges—especially when it comes to dividing assets. One of the biggest questions you might ask during this process is, “How will our assets be divided?” This is where an independent, fair family law valuation becomes helpful.

Recent trends show that divorce in Australia is happening later in life. Couples are staying together a little longer before separating. On average, marriages lasted about 13 years in 2023, which is a bit longer than 12.8 years in 2022 (Australian Bureau of Statistics, 2024).

People are also getting divorced at an older age—men around 47 years old and women around 44. In 2023, nearly 49,000 couples got divorced, which means for every 1,000 people, about two or three ended their marriage.

But what do all these numbers really mean?

Simply put, they show just how important it is to have a fair and legally sound property settlement. After all, just like marriage isn’t always a perfect 50/50 split, dividing assets after separation isn’t either. Family law takes several factors into account when deciding who gets what, and having an accurate property valuation ensures you get a fair outcome.

Whether you’re going through a divorce or ending a de facto relationship, understanding your legal rights and getting expert valuations can make the process much smoother. From your home and investment properties to businesses and superannuation, everything needs to be assessed at its true market value before a fair division can happen.

So, how exactly does property settlement work? Let’s break it down in simple terms.

Family Law Property Settlements: How Are Assets Divided?

When a relationship ends, one of the biggest concerns is: Who gets what?

Going through a property settlement can feel like an emotional roller coaster, but understanding the basics can make the process smoother and less stressful. 

Simply put, property settlement is the legal process of dividing the assets, debts, and other financial resources after a couple separates. In Australia, the Family Law Act of 1975 governs such separations and splitting of properties for a fair and equitable outcome.

But here’s the thing—”fair” doesn’t always mean a 50/50 split. Instead, the court looks at several key factors, including:

• Financial and non-financial contributions – This includes income, home renovations, and childcare responsibilities.

• Future needs – It considers factors like earning potential, health conditions, and caregiving duties.

• Best interests of children – It prioritises children’s stability and financial security.

Every situation is unique, and property settlements aim to reflect that. But understanding what’s “fair” is just one part of the equation—the next step is figuring out what actually counts as property in a settlement.

What Counts as Property in a Settlement?

Property settlement isn’t just about who keeps the family home—it covers all assets and liabilities shared during the relationship, including:

• Real estate – The home you lived in, investment properties, or land.

• Superannuation – Even if it’s only in one partner’s name, the super can still be split.

• Businesses and investments – If a business, shares, or investments were acquired during the relationship, they may be included.

• Debts – Credit card debts, and all other financial obligations are factored in, even if they’re in just one partner’s name.

• Personal belongings – Cars, jewelry, and even household furniture can all be considered in the settlement.

The 4-Step Process of Family Law Valuations

Dividing assets after a separation can feel overwhelming. But knowing how family law valuations work can make the process clearer and fairer. Under Section 79 of the Family Law Act 1975, property settlements follow a structured approach to ensure you get a just outcome.

Here’s how it works:

1. Identifying and Valuing the Assets and Liabilities

To divide properties fairly, both parties need to fully disclose their assets and liabilities. This includes real estate, superannuation, businesses, shares, vehicles, and personal belongings, as well as all debts including credit card balances.

A professional property valuation ensures that everything is assessed at its real market value, helping prevent disputes and giving both parties a clear picture of what’s on the table.

2. Assessing Financial and Non-Financial Contributions

Property division isn’t just about who earned more during the relationship. The court looks at both financial and non-financial contributions made by each partner. This means salaries, property purchases, and investments count, but so do homemaking, childcare, and home improvements. A valuation expert helps put a clear monetary value on your property purchases, making negotiations fairer and more transparent.

3. Considering Future Needs and Financial Security

A fair settlement also looks at what happens after the separation. Factors like age, health, future earning capacity, and caregiving responsibilities play a major role in determining who gets what. A well-documented valuation can help courts or mediators decide how they will split the assets to make sure both parties have a stable financial future.

4. Supporting Negotiations and Legal Agreements

Property settlements typically happen through negotiation or mediation. But when it becomes difficult to reach an agreement, the case may go to court. Having an independent, legally recognised valuation strengthens your position in discussions. It also ensures that any settlement is based on accurate and fair asset values. A well-prepared valuation report can make the process smoother, faster, and less stressful.

At the end of the day, an independent family law valuation is essential for a fair and legally sound property settlement. This is where Independent Property Valuations’ (IPV) expertise becomes invaluable. A trusted valuer like IPV accurately assess all properties at their true market value, helping both parties make informed decisions and avoid unnecessary disputes.

Common Challenges in Property Settlements After Separation or Divorce

Property settlements can be complex, even with clear legal guidelines. Some of the most common issues separating couples face include:

• Hidden assets – When one party fails to disclose all financial resources.
• Valuation disputes – Disagreements over the worth of shared assets.
• Debt responsibility – Determining who is responsible for outstanding debts and credit card balances.
• Superannuation splitting – Understanding how you divide retirement funds.
• Emotional attachments – Conflicts over who keeps the family home or other sentimental items.

A professional property valuer can help prevent disputes by providing a clear, unbiased assessment of the properties at stake. With this, both parties can move forward with confidence, knowing that the settlement is fair and transparent.

5 Powerful Ways Independent Property Valuations Support Fair Family Law Settlements

An accurate family law valuation is a crucial step in achieving a fair and legally sound property settlement. This is where IPV’s expertise makes all the difference.

By providing fair and precise property valuations, IPV helps:

1. Keep negotiations fair and unbiased

An independent valuation gives everyone a clear, objective number to work with, making discussions smoother.

2. Reduce conflicts and avoid disputes

When both sides have an accurate valuation, there’s less room for misunderstandings or drawn-out legal battles.

3. Strengthen your case in court

Our valuations meet legal standards, providing solid evidence that holds up in court.

4. Make mediation and settlements easier

An unbiased valuation helps both parties find common ground faster, cutting down on stress and delays.

5. Secure your financial future

A fair property valuation ensures you get what you deserve, so you can move forward with confidence.

Final Thoughts

Property settlement doesn’t have to be a battle. With the right knowledge and expert valuations, you can confidently move forward while ensuring a fair and transparent division of assets.

Do you need help with a family law valuation?

Get in touch with us today and let’s make the process easier for you.