When should you formalise your property split?

Start with the applicable time limit

Under the usual federal rules, married people have 12 months after a divorce takes effect to apply for property orders; de facto applications generally need to be made within two years of separation. Permission may be needed outside the applicable limit.

The relevant date and any exception need to be checked against your circumstances. If time is short or the usual limit has passed, get individual advice promptly.

You do not have to wait for divorce

Property arrangements and divorce are separate. Waiting for a divorce does not necessarily help with preparing an agreed property settlement.

Once you are ready to discuss the financial outcome, start identifying the information and actions needed. The goal is an informed agreement, not a rushed signature.

Allow for the steps outside the application

An intended settlement date may depend on more than the court’s review.

• Obtain current values and outstanding loan balances.
• Ask the lender about any proposed refinance or release.
• Allow time for document review and both signatures.
• Check any superannuation fund requirements.
• Coordinate conveyancing or implementation after orders are made.

Revisit the figures if circumstances change

A long gap between discussion and application can leave figures out of date. Check whether values, liabilities or the agreed practical arrangements have changed before proceeding.

Do not assume that a later increase in value automatically belongs to one person, or that an informal agreement prevents a future claim. Get advice if the position is unclear.