Your Guide to a 60/40 Split Divorce in Australia

60/40 split divorce australia | Ipswich Family Lawyer

What happens when a couple decides to end their marriage and divide their property?

In Australia, one common outcome is a 60/40 property split, where one party receives 60% of the shared assets, and the other receives 40%. But why does this happen, and is it fair?

In family law, the court’s primary goal is to ensure that property settlements are just and equitable—meaning fair for both parties.

A 60/40 split isn’t a one-size-fits-all solution; it’s determined after considering factors like financial contributions, non-financial contributions, and future needs.

What Does a 60/40 Property Split Mean in an Australian Divorce Settlement?

In Australian family law, when a couple separates, their combined assets and liabilities must be divided fairly.

A 60/40 split means that one party will receive 60% of the total property pool, while the other receives 40%.

The property pool includes:

  • Real estate (e.g., family home, investment properties)
  • Savings and bank accounts
  • Superannuation funds
  • Vehicles
  • Personal possessions (e.g., jewellery, art)
  • Debts and liabilities (e.g., mortgages, loans)

A 60/40 split doesn’t automatically mean one party is being treated unfairly. It usually reflects differences in financial contributions, caregiving roles, and future financial needs.

For example, if one parent has primary care of young children, they might receive the larger share to ensure they can provide stability.

It’s important to remember that every divorce settlement is unique. The court doesn’t have a set formula; instead, it assesses each case individually to determine what is fair.

How Do Australian Courts Determine if a 60/40 Split Is Fair?

The Family Law Act 1975 guides how Australian courts decide on property settlements. When considering a 60/40 split, the court follows a four-step process:

  • Identifying the Property Pool: The court identifies and values all assets, liabilities, and financial resources.
  • Assessing Contributions: The court considers financial contributions (e.g., income, property bought) and non-financial contributions (e.g., homemaking, childcare).
  • Considering Future Needs: Factors such as age, health, earning capacity, and care responsibilities are evaluated.
  • Ensuring Fairness: The court checks if the proposed division is just and equitable for both parties.

For example, if one partner stayed home to care for children while the other built a career, their non-financial contribution to the family would be heavily considered. Similarly, if one party has ongoing medical needs, they may receive a larger share.

The aim isn’t to punish or reward anyone—it’s about creating a fair outcome based on contributions and future needs.

What Factors Influence a 60/40 Division of Assets in a Divorce?

Several key factors influence whether a 60/40 split is appropriate in a divorce settlement:

  • Financial Contributions: Did one party contribute more money or property to the relationship?
  • Non-Financial Contributions: Did one partner handle most of the housework, childcare, or emotional support?
  • Length of the Relationship: Longer relationships usually result in more balanced splits, as contributions are seen as shared.
  • Children and Care Responsibilities: The parent who primarily cares for the children may receive a larger share.
  • Health and Age: Health conditions or limited earning capacity can influence the division.
  • Income and Earning Potential: If one party has significantly higher income or job prospects, the court might adjust the division.
  • Debts and Liabilities: Existing debts are considered and factored into the final split.

Each case is different. For example, a stay-at-home parent who dedicated years to childcare may receive 60% of the property pool, even if they didn’t directly earn income during the marriage.

Can a 60/40 Split Apply to Both Assets and Liabilities in a Divorce?

Yes, a 60/40 split applies to both assets and liabilities in a divorce settlement. The property pool is considered as a whole, meaning both debts and assets are divided according to the agreed or court-ordered percentage.

Sometimes, liabilities can complicate the settlement. For example, if one partner racked up significant debt during the marriage without the other’s knowledge, the court may decide it’s unfair to split the debt equally.

It’s crucial to ensure all debts are disclosed honestly during the settlement process. Hidden debts or assets can lead to legal consequences and adjustments to the property division.

How Can I Negotiate a 60/40 Property Split During Divorce Proceedings?

Negotiating a property settlement can be challenging, but preparation and a clear understanding of your rights are essential. Here are some tips:

  • Get Legal Advice Early: Speak with an experienced family lawyer to understand your entitlements.
  • Be Transparent: Disclose all assets, debts, and financial resources honestly.
  • Prioritise Key Assets: Decide which assets (e.g., family home, superannuation) are most important to you.
  • Consider Mediation: Mediation can help couples reach an agreement without going to court.
  • Focus on Long-Term Stability: Think about your future financial needs, not just immediate concerns.
  • Stay Calm and Reasonable: Emotional decisions can cloud judgment—focus on fairness and practical outcomes.

If you and your former partner can agree on a 60/40 split, you can formalise it through a Consent Order in the Family Court. If not, the court will make a decision based on the evidence provided.

Need Expert Guidance for Your Property Settlement?

A 60/40 split divorce in Australia isn’t about winners or losers—it’s about achieving a fair and reasonable outcome for both parties. The court considers financial and non-financial contributions, as well as future needs, to ensure the division reflects each person’s circumstances.

Whether you’re negotiating directly, attending mediation, or preparing for court, it’s essential to seek professional advice and remain focused on a balanced resolution.

If you’re dealing with a 60/40 split divorce in Australia, Ipswich Family Lawyers can provide expert advice and representation to ensure your rights are protected. Contact us today for personalised support and practical solutions tailored to your unique situation.

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