Following the breakdown of a marriage or de facto relationship, it is common for separated parties to be unsure and anxious about their property settlement and the assets they are likely to retain.

Is 50/50 the starting point in family law property settlements?

Following the breakdown of a marriage or de facto relationship, it is common for separated parties to be unsure and therefore anxious about their entitlements in a property settlement and the assets they are likely to retain. This is only natural given that family law is a complicated and emotional area of law which is often poorly understood.

Unfortunately this is reflected in a great quantity of “inaccurate” statements often regarded as fact by those in the community.

Automatic entitlement – a popular myth

Contrary to popular belief, there is no presumption that assets should be divided 50/50, 60/40 or in any other subjective proportion. The High Court has said that there is no automatic entitlement or starting point in property settlement matters (Mallet v Mallet [1984] HCA 21).

People often receive “advice” from well-meaning friends or family as a result of their own experiences, this advice is often misleading and can be unhelpful when it creates a false expectation.

Each person’s situation is different and should be carefully assessed by a family lawyer qualified to give the right advice.

Factors to be taken into account

The factors which must be taken into account when the Family Law Courts consider how property is to be divided are set out in the Family Law Act.

A lawyer practicing in family law will know exactly what is taken into consideration by the Court when providing detailed and specific advice to clients. There is no universal mathematical equation that applies for all property settlements.

To decide how to distribute the assets the Family Court will normally take into account factors including:

  • The current value of the assets and liabilities. The court will require all assets and liabilities to be identified to establish a ‘net asset pool’. This includes superannuation entitlements, as well as assets held personally, in partnership, by trusts, or companies.
  • The direct financial contributions made by each person to the acquisition of assets or the preservation, improvement or maintenance of those asset, this will include assets owned at the commencement of the relationship.
  • The indirect financial contributions made by each person in the relationship, for example, the giving up of a career to allow the other person to further their own career.
  • The non-financial contributions by each person like caring for children, being the homemaker and maintaining or improving the assets by personal exertion such as individual efforts in renovations that increase the value of an asset.
  • Identifying the future needs of the parties, for example, age, health, financial resources, superannuation, care of children and income earning capacity.

After considering all of the above the Court will consider whether any proposed property settlement is ‘just and equitable’ or fair in the circumstances.

No particular factor is given priority over another, meaning that someone who is the sole income earner will not necessarily be entitled to a greater financial settlement than the other person who was a stay at home parent to the children of the relationship. In Rolfe (1979) 5 FamLR 146 the Family Court approved the approach that the contribution of the homemaker had to be recognised in a ‘substantial’ and not token way.


It is important to remember that there is no presumption of equality (like a 50/50 split) as a starting point in respect of contributions and that each matter will be decided upon the particular circumstances of that case.

The Family Court has broad powers to make Orders for a just and equitable division of assets.

It is important for anyone considering separating from their spouse, or who has already separated, to obtain independent legal advice from experienced family law solicitors about their likely property settlement entitlements.

If you would like advice, guidance or assistance about property settlement entitlements following the breakdown of a marriage or relationship, contact us on 08 9221 5775 or email