Family Law

What You Need to Know About Financial Settlements After Separation

Separating with your partner or spouse is not just an emotional transition—it also comes with important financial decisions. One of the key aspects is the financial settlement, which covers the division of assets, liabilities, superannuation, and spousal maintenance. Understanding what you need to know about financial settlements after separation can help you navigate the process with confidence and secure your financial future.

What is a Financial Settlement After Separation?

A financial settlement after separation refers to the division of assets, liabilities, and financial resources between both parties. Assets are divided based on factors like financial contributions and future needs. The goal is to reach a ‘just and equitable’ distribution based on each party’s contributions and future needs.

Commonly divided assets include:

Property – Family homes, investment properties, and land holdings.
Superannuation – Retirement savings, which can be split between parties as part of the settlement.
Business Interests – If one or both parties own a business, it must be valued and considered in the settlement.
Investments and Savings – Joint bank accounts, shares, and other financial assets.

Key Steps in the Financial Settlement Process

To reach a financial settlement, you will be required to follow these key steps:

1. Exchanging disclosure

Both parties have a duty to provide complete and accurate information about their assets, liabilities, and income.

2. Negotiation and Mediation

At the first instance, parties will often attempt to reach agreement regarding their financial settlement by way of negotiation.

In the event that you and your former partner are unable to reach agreement by negotiation, you will be required to engage in dispute resolution services, including mediation, with your former partner before filing an application to commence court proceedings. Mediation provides a structured setting to negotiate a fair outcome.

3. Formalising your Settlement Agreement

Once an agreement is reached, it can be made legally binding by filing consent orders with the Federal Circuit and Family Court of Australia or by signing a financial agreement. By formalising your settlement agreement through consent orders or a financial agreement, the settlement agreement that you reach will be enforceable and you will be provided protection from future disputes.

Superannuation and Separation: What You Need to Know

Under the Family Law Act 1975 (Cth), superannuation is treated as property in your family law matter and can be divided when a relationship breaks down. In Australia, superannuation can be transferred from one party’s superannuation fund to the other party’s superannuation fund in a financial settlement. If you want to adjust superannuation interests, you must do so by agreement or by way of an application to the Federal Circuit and Family Court of Australia. Understanding your rights regarding superannuation ensures a more balanced financial future. Learn more here.

Spousal Maintenance and Financial Settlements

In some cases, one party may be entitled to spousal maintenance after separation, particularly if they can demonstrate that they have a need for financial support and that the other party has the capacity to provide this support. The amount and duration of spousal maintenance depend on factors such as:

The financial needs of the receiving party.
The ability of the receiving party to earn an income.
The financial situation of the paying party.

This can be a crucial part of the financial settlement after separation, helping ensure that both individuals can move forward securely.

Mistakes to Avoid During Financial Settlements

A fair settlement requires careful planning. Avoid these common mistakes:

Not seeking legal advice – Consulting a family lawyer ensures your rights and financial interests are protected.
Failing to disclose assets – There are serious consequences associated with failing to provide full and frank financial disclosure or giving false or misleading information in your family law matter.
Rushing the process – A financial settlement impacts your long-term security, so take the time to ensure it’s fair.

Why You Need a Family Lawyer for Your Financial Settlement

Navigating a property settlement after separation or managing financial agreements can be complex. A family lawyer can:

Ensure a fair division of property, superannuation, and other assets.
Guide you through family law mediation or negotiation.
Finalise your agreement through legally binding consent orders or a financial agreement.

Get Professional Guidance on Your Financial Settlement

If you’re facing a financial settlement after separation, De Saxe O’Neill Family Lawyers can help. Our experienced team will guide you through every step, ensuring that your financial future is secure.