How Is Property Divided in an Australian Divorce? The 60/40 Myth and What Actually Decides the Split

“We’ll just do 60/40.” It is the most common assumption we hear when a valuation is ordered for a separation — and it is a myth. Australian family law has no fixed percentage, no 50/50 presumption, and no automatic 60/40. The split is decided case by case, and whatever percentage a couple lands on is meaningless until every asset in the pool has a defensible value against it. This article explains what actually determines the division, how the law changed on 10 June 2025, and why the number everyone argues about starts with the number a valuer puts on the assets.

How is property divided in a divorce in Australia?

Property division in an Australian divorce is discretionary, not formulaic. The Federal Circuit and Family Court of Australia does not start from a presumption of equal division or any fixed ratio. Instead, under the Family Law Act 1975 — section 79 for married couples, section 90SM for de facto couples — the court applies a structured, four-part process to reach an outcome that is “just and equitable” in the specific circumstances of the relationship. The percentage split is the result of that process, not the starting point.

That distinction is the single most misunderstood thing about family law property settlements, and it is why “we’ll just do 60/40” so often falls apart once the real figures are on the table.

The four-step process the court actually uses

Courts and lawyers describe property settlement as a four-step process. Since 10 June 2025 this framework is codified directly in the Family Law Act (previously it lived in case law); the steps themselves are long-established.

Notice where the percentage lives: it is the output of steps 2–4, applied to the valued pool from step 1. Get step 1 wrong and every later step is built on a false number.

Why there is no 50/50 or 60/40 rule

Some countries start from a presumption of equal division. Australia does not. Section 79 gives the court a broad discretion to make whatever adjustment is just and equitable, having regard to the statutory factors. There is:

• No presumption of 50/50 — equal division is a possible outcome, not a starting point.
• No automatic 60/40 — the figure people quote is just a common result in matters where one party has greater future needs, not a rule.
• No formula — two couples with identical asset pools can be split differently because contributions and future needs differ.

The “60/40” shorthand persists because many settlements do land somewhere between 55/45 and 65/35 once future needs are weighed. But it is a description of frequent outcomes, not a legal entitlement — and treating it as a starting point is how negotiations stall.

What changed on 10 June 2025

The Family Law Amendment Act 2024 (No. 118, 2024) made the most significant changes to property settlement in decades. Its property provisions commenced 10 June 2025 and apply to matters not yet finally determined. The key changes:

• The decision-making framework is now codified in sections 79 and 90SM, rather than sitting in case law. The court’s four-step approach is written into the Act, and the former “future needs” factors (the old section 75(2) list for married couples) are co-located into section 79(5).
• Family violence is now an express consideration. The economic effect of family violence on a party’s contributions and on their current and future circumstances must be considered. This codifies and broadens the former common-law Kennon approach, which had set a high bar.
• The duty of full and frank financial disclosure is now written into the Act — previously it lived in the court rules. Parties must disclose all relevant financial information, and the elevated status raises the consequences of hiding assets.
• Companion animals get specific treatment as a distinct category of property.

For anyone valuing assets in a separation, the practical effect is the same as it always was, only sharper: the asset pool must be identified completely and valued defensibly, because disclosure is now a statutory duty and the stakes of an inaccurate pool are higher.

Why the split is meaningless without a valuation

Return to the myth. A couple agrees on “60/40” over the kitchen table. But 60% of what? If the family home is carried at the figure a selling agent floated to win the listing, or an investment property at what it was worth three years ago, or a business at a number one party invented, then the percentage is applied to a fiction. The party who accepts an inflated pool value can end up with 60% of too little.

This is why step 1 is not paperwork. Under the Family Law Act, the asset pool must be established on current market value — the price the asset would realistically achieve between a willing buyer and willing seller, as at the relevant date. For real property that means an independent valuation, not an appraisal:

• A real estate agent’s appraisal is a marketing estimate, often optimistic, and is not admissible expert evidence.
• An independent valuation by a qualified valuer (RICS / API) is prepared to a professional standard, defensible in court, and is what the pool figure should rest on.

The court’s strong preference reinforces this. The Federal Circuit and Family Court generally directs a single expert witness valuation — one valuer jointly instructed by both parties — rather than each side engaging their own. A single, independent figure removes the “duelling valuers” problem and gives both parties one defensible number to build the split around. We cover the mechanics of that role in our Family Court property valuation service and the full process in our property valuation for divorce guide.

What is in the pool — beyond the house

The asset pool is everything of value, jointly or separately held:

• The family home and any investment properties
• Superannuation — treated as property that can be split under the Act (section 90MC), often the second-largest asset after the home
• Businesses, company and trust interests
• Vehicles, shares, savings, and personal property of significant value
• Liabilities — mortgages, personal loans, credit card debt, tax owing (the 2024 reforms expressly bring liabilities into the framework)

Real property, business interests and superannuation are the items most likely to need independent valuation, because their value is contestable in a way a bank balance is not. Where there are allegations that assets were sold off or dissipated before separation, a retrospective valuation can establish what something was worth at an earlier date.

How settlements are finalised

Most property settlements never reach a contested hearing. Once the pool is valued and the parties agree on a division, it is formalised by:

• Consent orders — filed with the court for approval, giving the agreement the force of a court order, or
• A binding financial agreement — a private contract meeting the technical requirements of the Family Law Act, entered into with independent legal advice on each side.

Either way, the valuation underpins the number. Consent orders that rest on a realistic, independently valued pool are far less likely to be disputed later than a hallway “60/40” applied to guessed figures.

Methodology

• Legal framework: Family Law Act 1975 (Cth), sections 79 (married) and 90SM (de facto); superannuation as property under section 90MC. Property changes per the Family Law Amendment Act 2024 (No. 118, 2024), property provisions commenced 10 June 2025 — see the Federal Circuit and Family Court of Australia’s summary of the 10 June 2025 changes.
• Single expert witness preference: Federal Circuit and Family Court of Australia (Family Law) Rules 2021 and the Court’s practice on expert evidence.
• This article describes how property settlements work in general terms and the role of valuation within them. It is not legal advice — every separation turns on its own facts, and family-law outcomes should be confirmed with a family lawyer.

Frequently asked questions

Is property always split 50/50 in an Australian divorce?

No. Australian family law has no presumption of equal division. Under section 79 of the Family Law Act 1975 the court exercises a broad discretion to reach a “just and equitable” outcome, weighing contributions and future needs. Equal division is one possible result, not a starting point.

Where does the “60/40 split” idea come from?

It describes a frequent outcome, not a rule. Many settlements land between roughly 55/45 and 65/35 once one party’s greater future needs (care of children, lower earning capacity) are weighed against contributions. There is no statutory 60/40 entitlement, and treating it as a starting point often stalls negotiations.

What changed in family law property settlement on 10 June 2025?

The Family Law Amendment Act 2024 codified the four-step decision-making framework into the Family Law Act, made the economic effect of family violence an express consideration in property matters, wrote the duty of full and frank financial disclosure into the Act, and added specific treatment for companion animals.

Do I need a valuation, or is a real estate agent’s appraisal enough?

For a property settlement you need an independent valuation, not an agent’s appraisal. An appraisal is a marketing estimate and is not admissible expert evidence. The court generally prefers a single expert witness valuation — one qualified valuer jointly instructed by both parties — as the defensible basis for the asset pool.

Is superannuation included in the property pool?

Yes. Superannuation is treated as property that can be split under section 90MC of the Family Law Act 1975. It is frequently the second-largest asset after the family home and must be valued and included in the pool.

Can we settle without going to court?

Yes. Most settlements are finalised without a hearing, either by filing consent orders for the court’s approval or by entering a binding financial agreement with independent legal advice on each side. Both should rest on an independently valued asset pool.

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Sources:

• Family Law Act 1975 (Cth) — Federal Register of Legislation
• Family Law Amendment Act 2024 (No. 118, 2024)
• Family law (property) changes from 10 June 2025 — Federal Circuit and Family Court of Australia

This article is general information about how property settlements work in Australia and the role of valuation within them — it is not legal advice. Family-law outcomes depend on individual circumstances; confirm your position with a family lawyer. Last verified 10 July 2026.

See also: Family Court Property Valuation · Property Valuation for Divorce — Full Guide · Retrospective Valuations · How Commercial Property Is Valued · What Is a Property Valuation?