When a relationship ends, it can take time for people to consider how their property and finances should be divided. However, Australian family law imposes time limits for starting property settlement proceedings.

Understanding these time limits is important, as missing them can make resolving financial matters more complicated.

Time Limits After Divorce

For married couples, an application for property settlement or spousal maintenance must generally be filed within 12 months after a divorce becomes final.

A divorce order usually becomes final one month and one day after it is made. Once that happens, the 12-month limitation period begins.

If proceedings are not commenced within this timeframe, a party must seek permission from the Court to bring an application out of time.

Time Limits for De Facto Relationships

Different time limits apply to de facto relationships.

For couples who were in a de facto relationship, property settlement or maintenance proceedings must usually be started within two years of the date of separation.

If the two-year limitation period has passed, a party must apply for the Court’s permission to proceed.

What Happens if the Time Limit Has Passed?

It is still possible to apply for property settlement after the limitation period has expired, but this is not automatic.

The Court must grant leave (permission) before the matter can proceed. To do so, the Court will consider issues such as whether hardship would be caused if the application were not allowed to proceed.

Obtaining the Court’s permission can be complex, which is why it is generally advisable to seek legal advice before the limitation period expires.

Do You Need to Go to Court to Finalise a Property Settlement?

Many separating couples are able to reach an agreement about property without going to court.

Once an agreement has been reached, it can be formalised through:

• consent orders approved by the Court
• a binding financial agreement

Formalising a settlement is important to ensure the financial relationship between the parties is properly finalised.

Getting Advice Early

Even if parties reach an agreement about finances after separation, it is important to ensure that any settlement is documented properly and within the applicable time limits.

Understanding your rights and obligations early can help you avoid unnecessary complications later.

If you would like advice about property settlement or time limits following separation, the team at South Coast Family Law Group can assist.

Contact our office today on (02) 4202 6644 or email us at admin@scflg.com.au to arrange a consultation.