Is Separation Just a 50/50 Split?

Many Australians assume that after the breakdown of a long relationship, the assets of the relationship are simply split down the middle, half to one and a half to the other.

While this may have been the case a long time ago, in most instances, a straight 50:50 split may result in an outcome that is unfair to one of the parties.

There are several factors the Court will take into account when deciding a percentage split between the parties. Addressing all of them would make for a very long article, but in short, the Court applies a structured four-step process.

The Four-Step Process

Identify and value all of the property of the relationship, including assets, liabilities, and financial resources, as of the date of the hearing.
Assess the contributions made by both parties: financial, non-financial, and as a parent or homemaker.
Assess the current and future circumstances of each party.
Make final adjustments to ensure the overall outcome is just and equitable.

As of 10 June 2025, the Family Law Act formalises this structure and requires the Court to consider each party’s current and future financial position rather than only future “needs”, including housing, income, and responsibilities.

So, Is Separation Just a 50/50 Split?

A 50:50 division is often used as a reference point; however, it can be adjusted after applying the four-step process.

Consider a couple who began with modest assets and built a life together. One party stepped away from paid employment to raise three children and manage the household, while the other worked in a high-income role. When the children are aged between 9 and 13, the relationship ends. The children will primarily live with the party who has been their primary carer.

How the Court Approaches This Scenario

After identifying and valuing the property pool, the Court considers the following:

Relationship Contributions

1. Who Made the Greater Financial Contributions?

The party engaged in paid employment may have made greater direct financial contributions through income and superannuation.

2. Who Made the Greater Non-financial Contributions?

The party who assumed primary responsibility for parenting and homemaking may have made greater non-financial contributions, including child-rearing and management of the household.

Under the law, financial and non-financial contributions are recognised as equally important.

Current & Future Circumstances

1. Income & Earning Capacity

A party who has been out of the workforce for many years may face challenges re-entering employment and earning at a comparable level. This can affect their long-term financial position.

2. Parenting Responsibilities

If one party has primary care of the children, they will carry most of the day-to-day expenses and caregiving responsibilities. This is a relevant consideration in any adjustment.

3. Financial Resources

The Court will consider whether either party has access to other financial resources.

4. Age & Health

If one party’s age or health affects their capacity to earn income, this may influence the percentage division.

5. Family Violence or Economic Abuse

As of 10 June 2025, the Family Law Act requires the Court to consider whether family violence, including financial control, affected either party’s contributions or future circumstances.

Possible Outcome

In a scenario like this, after applying the four-step approach, the Court may determine that a 55:45 or 60:40 division in favour of the primary carer is just and equitable.

These outcomes reflect not only the contributions made throughout the relationship and child-rearing responsibilities but also the ongoing financial impact of time out of the workforce and reduced earning capacity.