Property Settlement Time Limits: What Every Separating Couple Needs to Know

In the emotional aftermath of a separation, legal deadlines are rarely the first thing on anyone’s mind. Understandably, people prioritise practical matters — where to live, arrangements for children, sorting finances day to day. But property settlement claims in Australia are subject to strict time limits, and missing them can mean losing the right to pursue a fair share of the assets altogether, or facing a much harder path to be heard.

Knowing these deadlines — and acting on them early — is one of the simplest ways to protect your position.

The Time Limits at a Glance

Married couples: An application for property settlement must generally be made within 12 months of the date a divorce order becomes final. Importantly, this is separate from separation itself — a divorce cannot usually be finalised until at least 12 months and one day after separation, meaning couples often have longer than 12 months from separation in practice, but the clock starts running from the divorce order, not the split.

De facto couples: An application must generally be made within 2 years of the date of separation. There is no divorce order to mark a starting point, so the separation date itself becomes critical — and, as discussed elsewhere, that date can sometimes be disputed.

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What Happens If You Miss the Deadline?

Missing the relevant time limit doesn’t necessarily mean your claim is dead — but it does mean you need the Court’s permission (“leave”) to proceed out of time, which is not automatically granted. Under section 44(6) of the Family Law Act 1975, the Court may allow a late application where it’s satisfied that hardship would be caused if leave were refused, or that the applicant would be unable to adequately support themselves without an income-tested pension, allowance, or benefit.

In practice, this means late applicants face an additional legal hurdle before their property claim is even considered on its merits — an avoidable complication for anyone who simply wasn’t aware of the deadline.

Why Waiting Is Riskier Than It Feels

It’s easy to assume there’s no urgency, particularly where separated parties are on reasonably amicable terms or informally dividing things as they go. But delay carries real risks beyond the strict time limit:

• Assets can change significantly. Property values shift, businesses grow or decline, and superannuation balances fluctuate. The longer settlement is delayed, the more complex — and potentially contentious — the eventual division can become.
• Memories and records fade. Evidence of contributions, particularly non-financial ones, becomes harder to reconstruct with the passage of time.
• Circumstances change. New relationships, additional debts, or changes in income can all complicate what might otherwise have been a straightforward settlement.
• Informal agreements offer limited protection. Without formalising an agreement through consent orders or a binding financial agreement, either party generally remains free to bring a claim at any point before the relevant time limit expires — creating ongoing uncertainty for both people.

Acting Early Doesn’t Mean Rushing a Bad Outcome

There’s an important distinction between acting within time and rushing into an unfair agreement. Getting advice early doesn’t mean settling quickly under pressure — it means understanding your position, your entitlements, and your options while there’s still time to negotiate a considered, fair outcome rather than a reactive one.

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How Aylward Game Solicitors Can Assist

Time limits in family law are unforgiving, and the consequences of missing one can be significant. Our family law team helps clients understand exactly where they stand from the outset — including calculating the relevant deadline for their circumstances and identifying any complexities around separation or divorce dates.

Wherever possible, we work with clients to resolve property matters through collaborative, dispute-resolution-focused methods such as negotiation and mediation — reaching a fair, properly documented outcome without the delay and cost of contested proceedings. Where circumstances mean a limitation period has already passed, we can also advise on the prospects of an out-of-time application.

If you’ve separated and haven’t yet finalised a property settlement, don’t assume there’s no urgency. Contact Aylward Game Solicitors to understand your timeframe and protect your position.