Property Settlement: Why What You Acquire After Separation Still Counts

One of the biggest misconceptions we see in family law is that once you separate, anything you acquire afterwards automatically belongs to you. Unfortunately, that is not always the case. Until your property settlement has been finalised, whether by a Binding Financial Agreement, Consent Orders or final Court Orders, assets you acquire after separation may still form part of the property pool and be taken into account when working out each party's entitlement.

This remains true even if you have already divorced. A divorce legally ends your marriage, but it does not determine how your property, finances or superannuation will be divided. Those are separate legal processes.

The definition of property in family law is broader than most people think. Many people picture only the family home, yet it can include houses and investment properties, businesses, cars, boats and other vehicles, bank accounts and investments, shares and cryptocurrencies, superannuation, trust interests, inheritances, and compensation payments or other financial windfalls.

Changes to your financial circumstances during separation may also be relevant. If you start a successful business, receive a significant pay rise, purchase another property or receive an inheritance before your settlement is finalised, those matters may need to be considered as part of the overall settlement. This does not necessarily mean your former partner will receive half of those assets. Every matter is assessed on its own facts, taking into account each party's contributions and future needs under the Family Law Act.

How long does this period last? There is no fixed timeframe. It generally continues until your financial relationship has been legally resolved. For some couples that is a matter of months, while for others it can extend over several years where negotiations are delayed or court proceedings become necessary. This is one of the reasons we encourage separating couples to seek legal advice early, as delaying a property settlement can have unintended financial consequences if either party's circumstances change significantly after separation.

We have prepared this article to share general information. For personal advice, book a consultation with our team.