The courts in Australia are the last resort for settling a property dispute between spouses.  Even if you and your spouse can’t come to an agreement, you need to show the court that you’ve tried to reach an agreement through some type of alternative dispute resolution.  This is called a “pre-action procedure”.

Pre-action procedures are also aimed at determining which disputes can be settled out of court and which really require the court’s intervention.  While you might not be able to come to an agreement about everything, you might agree on some issues (who gets the house) and only have to bring a small number of disputes to the court (how is the debt divided).

There are several steps to the pre-action procedure:

1. Inviting the other side to participate in dispute resolution, such as family counseling, mediation or arbitration.
2. Agreeing on a type of dispute resolution service.
3. Attending the dispute resolution and making a genuine effort to resolve the problem.
4. Give written notice to the other side if no agreement can be reached (or the other side refuses to attend the meeting) of your intention to file with the court.
5. Replying to the written notice if you are on the receiving end.

Consult with an experienced Family lawyer about the rules and requirements in pre-action procedures to ensure that you meet all of your obligations.

There are several options for resolving property or financial disputes.

If you and your partner can reach agreement on how your assets and liabilities should be shared you can choose to formalise this agreement. Either a binding financial agreement or consent orders can record the agreement.

Where you and your partner cannot reach agreement on how your assets and liabilities should be shared, an application can be made for the Court to hear your matter. This process is costly and time consuming.

We will always try to resolve your property/financial issues by way of agreement and we will only proceed to a Court hearing as a last option.

Mediation procedures are very effective in dispute resolution and are used to assist parties to reach financial settlements. Mediation is a in a dignified, timely and cost-effective process which can achieve a co-operative result for both parties.

The Importance of Negotiating a Family Law Settlement

The importance of meaningful settlement negotiations in family law cannot be overstated.

While every separating couple has their own unique circumstances, one principle remains consistent: a genuine attempt to resolve disputes early can save significant time, stress and legal costs.

A recent Family Court decision highlights the risks of allowing conflict and emotion to prevent reasonable settlement discussions.

In that matter, the Court ordered the wife to pay the husband $30,000 in legal costs after finding that she had failed to make a meaningful attempt to negotiate a resolution. The Court considered that her approach to the litigation had been influenced by anger and distress, and that she had rejected a settlement offer that ultimately exceeded the outcome she received at trial.

The result was significant:

• The settlement outcome was less favourable than the offer that had been rejected; and
• A substantial costs order was made against her.

The Lesson: Settlement Requires Strategy

Family law disputes are understandably emotional. Separation often involves feelings of disappointment, hurt, uncertainty and frustration.

However, successful family law outcomes require careful decision-making and a focus on practical solutions.

A well-considered negotiation strategy can help you:

✔ Reduce legal costs
✔ Minimise stress and conflict
✔ Maintain greater control over the outcome
✔ Avoid the uncertainty of a Court determination
✔ Reach a resolution sooner

This does not mean accepting an unfair outcome. It means obtaining specialist legal advice, understanding your legal position and approaching negotiations with a clear strategy.

The Benefits of Mediation and Negotiation

At Mathews Family Law & Mediation Specialists, we believe that many family law disputes can be resolved effectively through negotiation and mediation.

Our Accredited Family Law Specialists and mediators assist clients to:

• Understand their legal rights and options
• Evaluate settlement proposals
• Negotiate strategically
• Identify practical solutions
• Resolve disputes without unnecessary Court proceedings wherever possible

Where Court proceedings are necessary, we continue to focus on achieving the best possible outcome while exploring opportunities for settlement throughout the process.

Resolve Your Family Law Matter with Experienced Guidance

If you are facing a property settlement, parenting dispute or other family law matter, early advice can make a significant difference.

Contact Vanessa Mathews, Accredited Family Law Specialist and Mediator, to discuss your options.

Call 1300 635 529 or email [email protected] to arrange a consultation.

About Vanessa Mathews — Accredited Family Law Specialist

Vanessa Mathews
Principal | Accredited Family Law Specialist | Accredited Family Dispute Resolution Practitioner | Mediator

This page was prepared and reviewed by Vanessa Mathews, Principal of Mathews Family Law & Mediation Specialists. Vanessa practises exclusively in family law and assists clients throughout Australia with separation, divorce, parenting disputes, property settlements, financial agreements and other complex family law matters.

Helping families resolve conflict through specialist legal expertise and constructive dispute resolution.

Last reviewed: 24 July 2026

Disclaimer: This page provides general information only and does not constitute legal advice. Every family law matter is different and you should obtain advice tailored to your circumstances.

If you cannot reach an agreement with your former partner then an application for property settlement must be filed. There are ongoing opportunities to settle proceedings before a decision is made by the Court. Where a settlement is not reached then the Court will make a decision as to how the property of the couple should be divided after a hearing. If the property is complex then the Family Court will hear the matter.

While many property settlements are resolved through negotiation or mediation, not every separating couple is able to reach an agreement.

It is common for separation and divorce to bring heightened emotions, uncertainty and disagreement. Issues such as the value of assets, future financial needs, parenting responsibilities or contributions made during the relationship can make negotiations difficult. In some cases, communication has broken down completely, making it impossible to resolve matters without legal intervention.

If an agreement cannot be reached, the Federal Circuit and Family Court of Australia can determine how property, liabilities and financial resources should be divided.

How Does the Court Decide a Property Settlement?

If Court proceedings become necessary, the Court will consider a range of factors, including:

• The assets, liabilities and financial resources of both parties
• Financial and non-financial contributions made throughout the relationship
• Contributions as a homemaker or parent
• The future needs of each party, including income, health, age and the care of children
• Whether the proposed outcome is just and equitable in all the circumstances

Every property settlement is determined on its own facts, which is why obtaining advice from an Accredited Family Law Specialist is so important.

Court Proceedings Are Not Always the End of Negotiations

Commencing Court proceedings does not mean your matter will automatically proceed to a final hearing.

In fact, the overwhelming majority of family law property disputes are resolved before a Judge makes a final decision. Throughout the Court process, parties are encouraged to participate in negotiations, mediation and dispute resolution to reach an agreement wherever possible.

If an agreement is reached during proceedings, it can usually be formalised by way of Consent Orders, avoiding the need for a final trial.

Experienced Representation When You Need It Most

If your matter cannot be resolved through negotiation or mediation, Mathews Family Law & Mediation Specialists will provide experienced and strategic representation throughout every stage of the Court process.

Our Accredited Family Law Specialists have extensive experience acting in both straightforward and highly complex property settlement matters involving:

• Businesses and family companies
• Trusts
• Investment properties
• Superannuation
• Significant asset pools
• Financial disputes involving complex legal issues

We will explain each step of the process, prepare your case thoroughly and work tirelessly to protect your interests while continuing to explore opportunities for an early and cost-effective resolution.

We’re Here to Help

If you’re unable to reach an agreement with your former partner, you don’t have to face the process alone.

Contact Mathews Family Law & Mediation Specialists today to arrange your complimentary 15-minute telephone consultation. Our Accredited Family Law Specialists will explain your legal options, answer your questions and help you develop a strategy to achieve the best possible outcome.

One of the most common concerns following separation is understanding how property will be divided.

In Australia, property settlements are governed by the Family Law Act 1975 and apply to both married couples and eligible de facto couples (including same-sex couples).

The purpose of a property settlement is not simply to divide assets. It is also intended to help finalise the financial relationship between the parties and provide certainty for the future.

The law recognises that contributions to a relationship are not limited to financial contributions. Contributions made as a homemaker, parent or through non-financial efforts are also considered.

The Importance of Finalising a Property Settlement

A formal property settlement can provide certainty and allow both parties to move forward independently.

An informal agreement between separating partners may not provide legal finality. Unless a property settlement is properly formalised, there may be a risk that a former partner could seek a property adjustment in the future.

Time limits also apply:

• Married couples generally have 12 months from the date a divorce order takes effect to commence property proceedings.
• De facto couples generally have two years from separation to commence property proceedings.

Obtaining advice early can help you understand your options and avoid unnecessary disputes.

How Does the Court Decide a Property Settlement?

Australian courts generally apply a four-step approach when determining property settlements.

Step One: Identify and Value the Property Pool

The first step is identifying all assets, liabilities and financial resources.

The property pool may include:

• real estate;
• bank accounts and investments;
• businesses and company interests;
• trusts;
• superannuation;
• vehicles and personal property;
• inheritances;
• liabilities and debts;
• other financial resources.

The value of the property is usually determined as at the date the matter is being considered, not simply the date of separation.

Once assets and liabilities are identified and valued, the net asset pool can be calculated.

Step Two: Assess Contributions

The Court considers the contributions made by each person throughout the relationship.

These may include:

Financial contributions

Examples include:

• income;
• savings;
• property purchases;
• mortgage repayments;
• business investments.

Non-financial contributions

Examples include:

• renovations;
• improvements to property;
• unpaid work that increases the value of assets.

Contributions as homemaker and parent

The law recognises that caring responsibilities and maintaining the household can be significant contributions to a relationship.

The assessment of contributions depends on the individual circumstances of each relationship.

Step Three: Consider Future Needs

The Court then considers factors that may affect the future circumstances of each person.

These may include:

• age and health;
• income and earning capacity;
• responsibility for children;
• financial resources;
• future care responsibilities;
• the impact of the relationship on earning capacity;
• other relevant financial circumstances.

This step recognises that an equal division of assets is not always an appropriate outcome.

Step Four: Is the Outcome Just and Equitable?

Finally, the Court must consider whether the proposed property division is fair in all the circumstances.

There is no automatic formula that determines how property must be divided.

Every relationship is different, and the outcome depends on the particular facts, contributions and future circumstances of each person.

Negotiated Property Settlements

Many property matters can be resolved without Court proceedings.

At Mathews Family Law & Mediation Specialists, we assist clients through a range of dispute resolution options, including:

• negotiation;
• lawyer-assisted settlement discussions;
• mediation;
• Family Dispute Resolution;
• collaborative approaches; and
• Court representation where required.

Our goal is to help clients achieve practical and legally sound outcomes while minimising unnecessary conflict and expense.

Property Settlement Lawyers Melbourne

Property settlements can involve complex issues including businesses, trusts, superannuation, inheritances and significant asset pools.

The Accredited Family Law Specialists at Mathews Family Law & Mediation Specialists provide strategic advice tailored to your circumstances and help clients throughout Australia resolve complex financial matters following separation.

Contact our team to arrange a consultation about your property settlement options.

About Vanessa Mathews — Accredited Family Law Specialist

This page was prepared and reviewed by Vanessa Mathews, Principal of Mathews Family Law & Mediation Specialists. Vanessa is an Accredited Family Law Specialist, Accredited Family Dispute Resolution Practitioner (FDRP) and Mediator who practises exclusively in family law. She assists clients throughout Australia with separation, divorce, parenting disputes, property settlements, financial agreements and other complex family law matters.

Helping families resolve conflict through specialist legal expertise and constructive dispute resolution.

Last reviewed: 24 July 2026

Disclaimer: This page provides general information only and does not constitute legal advice. Every family law matter is different and you should obtain advice tailored to your circumstances.