Out-of-Time Property Settlements
Property settlement plays a pivotal role in the dissolution of relationships. A timely resolution ensures a smoother transition and fair distribution of assets. However, there are situations where property settlements are pursued after the statutory time limits have expired.
Application for Property Settlement Out of Time
Property settlement in Australia generally involves the division of assets between spouses following the breakdown of a marriage. The Family Law Act 1975 provides a framework aimed at achieving a just and equitable distribution of property, considering both financial and non-financial factors.
The time limit for applying for a property settlement after divorce is 12 months from the date the divorce becomes final. If this period has passed, an application may still be brought, but only with the Court’s permission.
To obtain leave, the applicant must show that they (or a child) would suffer hardship if leave is not granted. The Court will consider various factors, including:
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Financial contributions made by each party
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Non-financial contributions (such as homemaking or parenting)
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The future needs of both parties
As of 10 June 2025, the Court is also required to consider the impact of family violence, including financial or economic abuse, when determining whether a settlement is just and equitable. This may be particularly relevant in cases where abuse contributed to a party’s delay in commencing proceedings.
It’s important to understand that leave is not automatically granted. The applicant must demonstrate a compelling reason for the delay and explain why hardship would result if permission were refused.
De Facto Property Settlement Out of Time
For couples in a de facto relationship, the time limit to apply for property settlement is 2 years from the date of separation.
As with married couples, the Court may allow an application to proceed out of time where failure to do so would cause hardship. The party applying must establish that a significant injustice would result from being barred due to the delay.
In considering such applications, the Court assesses both parties’ contributions and future financial circumstances. Since 10 June 2025, the Court must also consider family violence (including economic and financial abuse), which can have long-term effects on a party’s access to resources and financial independence.
Example: Property Settlement after 10 years
Consider a situation where a couple separated 10 years ago but did not finalise their property settlement. In this case, the application would fall well outside the usual time limit — 12 months for a divorced couple or 2 years for de facto partners.
To succeed, the party seeking leave must provide compelling reasons for the lengthy delay and demonstrate that significant hardship has resulted. The Court will examine their respective contributions during the relationship, as well as their current and future financial needs.
A party may also raise family violence or economic control as relevant circumstances that contributed to the delay or impacted their ability to seek settlement earlier. These factors may help the Court determine that granting leave is appropriate.
While success is not guaranteed, this example highlights the importance of early legal advice to protect your entitlement to a fair property division.
Professional Guidance for Out-of-Time Property Settlements
Managing an out-of-time property settlement requires a careful legal strategy and a strong understanding of current law and evidentiary requirements. As of 10 June 2025, the legal landscape has shifted further in favour of transparency and the protection of vulnerable parties, particularly where family violence or non-disclosure is involved.
Our firm specialises in family law and can assist you in preparing a strong application to proceed out of time, tailored to your specific situation.
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Out-of-time property settlements are subject to the Court’s discretion.
Standard property settlements after divorce and de facto property settlements share common grounds but require specific attention to the unique circumstances surrounding each case.
For more information about out-of-time property settlements, contact us at Bambrick Legal today. We offer a free, no-obligation 30-min consultation for all enquiries.
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Related Blog – Is your Ex Partner delaying Property Settlement?
