How Long Do You Have to Finalise a Property Settlement?

Clarity Family Lawyers Property Settlement Australia

Key Takeaways

  • Married couples have 12 months from the date their divorce becomes final to apply for property or spousal maintenance orders.
  • De facto couples must apply within 2 years of separation.
  • If the deadline is missed, you’ll need the Court’s permission (leave) to proceed, and this is only granted in limited circumstances.
  • Delays can affect your legal rights and may also result in adverse financial and tax consequences.
  • Finalising your agreement—whether by consent orders or a Binding Financial Agreement—protects your entitlements and avoids future disputes.

Why Time Limits Matter

In family law, timeframes aren’t just guidelines, they are legally enforceable limits set by the Family Law Act 1975 (Cth). Missing a deadline can mean losing your right to pursue a claim unless you are granted special permission by the Court. That permission is not automatic—you’ll need to show good reason for the delay and that hardship would result if your case isn’t allowed to proceed.

Time Limits for Married Couples: 12 Months from Divorce

Once a divorce order becomes final, there is a 12-month window to file an application for a property settlement or spousal maintenance. This time limit starts from the date the divorce takes effect, not the date of separation.

You don’t need to wait for a divorce to sort out property matters. Negotiations and even applications can commence earlier. However, if you haven’t reached agreement and want to rely on the Court to make orders, your application must be filed within the 12 months post-divorce.

Time Limits for De Facto Couples: 2 Years from Separation

De facto partners, including same-sex couples and those in registered relationships, have 2 years from the date of final separation to apply for property or maintenance orders.

Because separation dates aren’t always straightforward, particularly where couples remain living under one roof or reconcile temporarily, it’s important to clearly document or agree on the separation date early on, ideally with legal advice.

What If You Miss the Deadline?

If you’ve passed the time limit, you still have two potential options:

1. Reach Agreement and Apply for Consent Orders

If both parties agree on the terms, the Court can still make consent orders after the deadline, provided neither party objects and the orders are considered just and equitable.

2. Apply for Leave to Proceed Out of Time

If there is no agreement, you’ll need to ask the Court for permission (leave) to proceed. The Court will consider:

  • Whether hardship would be caused to you or any dependent children if leave is refused,
  • The reason for the delay,
  • Whether your claim has merit, and
  • Whether the delay has prejudiced the other party.

For example, in Slocomb & Hedgewood [2015] FamCAFC 219, a wife was granted leave to apply 18 years after separation, in part because neither party had taken steps sooner and hardship would have resulted.

Why It’s Best to Act Early

Relying on informal or verbal agreements can leave you unprotected. Without formal orders or a Binding Financial Agreement, there’s no way to enforce a property settlement, and if things unravel after the deadline, your options become very limited.

Finalising your property settlement early not only gives peace of mind, it also protects you if circumstances change—for example, if new assets are acquired or relationships shift. Importantly, acting within the time limit can also help preserve access to tax exemptions such as stamp duty relief, which may not be available if the deadline is missed.

What You Should Do Before the Deadline

– Get legal advice early — don’t wait until divorce is final or conflict arises.

– Exchange full financial disclosure — include income, assets, superannuation, liabilities, and debts.

– Try to reach agreement — mediation or negotiation is often quicker, less costly, and less stressful than court.

– Formalise the outcome:

  • Use consent orders if you want the Court to make your agreement legally binding, or
  • A Binding Financial Agreement (BFA) if you are seeking a private, contract-based settlement (with independent legal advice).

– File a court application if agreement isn’t possible, and do so before the time limit expires.

If You’re Already Out of Time

All is not necessarily lost, but time is critical:

  • Act quickly — delay further weakens your case for leave.
  • Seek legal advice immediately — you’ll need to prepare your application carefully and provide supporting evidence.
  • Collect documentation — proof of hardship, ongoing negotiations, financial records, or anything showing good reason for the delay.

Final Thoughts

Time limits for property settlements are strict and enforced across Australia under Commonwealth law. Married couples have 12 months from the date of divorce. De facto couples have 2 years from the date of separation. While exceptions exist, they are not easy to obtain and may result in missed financial entitlements, including tax benefits.

If you’re separated or recently divorced, we strongly recommend getting tailored legal advice early. Finalising your property settlement on time protects your financial future and helps avoid costly, unnecessary disputes.

Need assistance? Contact Clarity Lawyers today for confidential guidance. We support clients in Newcastle and across NSW with straightforward, compassionate family law advice.

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Rli Samantha@2x
Samantha Miller

Samantha has been a lawyer since 2001 having followed in the steps of her father, grandfather, great-grandfather and great-great-grandfather. No one can say she didn’t know what she was getting into!

Initially admitted in 2001 as a solicitor in NSW and Australia, Samantha moved to the UK where she was admitted as a solicitor in England and Wales in 2002. After working in several different areas of the law in large London firms, she determined that family law was her calling and hasn’t looked back.

 

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