Should We Wait to Finalise Our Property Settlement?
Separation is a challenging time, filled with emotional and financial complexities. One critical decision couples face is whether to finalise their property settlement promptly or delay the process. At South Coast Family Law Group, we often encounter clients uncertain about the timing of their property settlements. This article aims to shed light on the potential risks associated with delaying property settlements under Australian family law.
Delaying a property settlement can expose both parties to the volatility of asset values. The Federal Circuit and Family Court of Australia assesses the value of assets at the time of the hearing, not at the date of separation. This means any increase or decrease in asset values during the delay can impact the final settlement. For example, if property values rise, the total asset pool increases, potentially altering your entitlement.
If one party incurs additional debts after separation but before the settlement is finalised, those debts could become part of the property division. This may result in both parties being held responsible for liabilities that arose after the relationship ended, making the division more complex and potentially less fair.
Starting a new relationship before finalising your property settlement can complicate things. New financial contributions, joint purchases, or blending of assets with a new partner may be considered by the Court and could influence the division of the original asset pool.
If either party receives an inheritance before the settlement is finalised, that inheritance may be included in the overall asset pool. This could affect the eventual distribution, even if the inheritance was received after the relationship ended.
There are strict time limits for initiating property settlement proceedings under the Family Law Act 1975:
If you wait too long, you may need to seek permission from the Court to proceed with your property claim—and that permission is not always granted.
Ongoing financial uncertainty can prolong emotional stress and delay closure. Finalising your property settlement sooner rather than later can bring clarity, reduce conflict, and help both parties move forward confidently.
Our accredited family law specialists in Shellharbour and Wollongong work closely with clients to ensure settlements are fair, timely, and tailored to their circumstances. We focus on clear advice, strategic planning, and compassionate support through each step of the process.
Don’t leave your future to chance.
Contact us today or call on (02) 4202 6644 to discuss your property settlement and secure peace of mind.
Your privacy is paramount. All enquiries are confidential.
If you’d rather speak with us directly, give us a call or send us an email. We’re committed to providing the support and answers you need, on your terms.
12/200 Crown St, Wollongong NSW 2500
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