A property settlement is the legal process by which assets are divided between parties after the breakdown of a relationship. The goal is to achieve a fair and lawful division of property between those involved.
In Queensland and across Australia, property settlements can occur following a divorce, the end of a de facto relationship, or separation involving shared property and financial assets. These settlements include the division of homes, investments, debts, superannuation, and sometimes business interests.
Getting this process right is critical. Mistakes can lead to drawn-out legal disputes, emotional strain, and significant financial loss.
Unfortunately, many settlements fail due to avoidable issues early in the process. Below are the five most common property settlement mistakes — and how to avoid them.
Please note: This is general information only and not legal advice — please contact VM Family Law for accurate, tailored advice. Our full contact details can be found here: www.vmfamilylaw.com.au/contact
1. Lack of Proper Documentation
One of the most frequent problems in property settlements is missing or incomplete documentation. Accurate paperwork is essential to prove ownership, asset values, and the existence of any agreements.
Without documentation, disputes are far more likely. For example, where a couple verbally agrees on how to divide an investment property but never formalises the agreement, either party may later dispute the terms, leaving the matter unresolved or in court.
What to do:
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Keep all ownership documents, such as property titles, mortgage statements, superannuation statements, and trust deeds, up to date.
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Always put financial and property agreements in writing.
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Seek legal advice to formalise and enforce any agreements.
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Obtain professional valuations for all relevant assets.
2. Disagreements Over Property Value
Disputes about the value of assets can quickly derail negotiations. Emotional attachment, outdated appraisals, or differing opinions often lead to unrealistic expectations.
A family home, business interest, or investment property might be over- or undervalued depending on each party’s perspective.
What to do:
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Engage an independent, qualified valuer to determine the fair market value of significant assets.
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Avoid relying solely on informal or online appraisals.
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If disagreement persists, consider mediation or requesting the court to appoint a single expert valuer.
3. Hidden Debts and Financial Disclosure Issues
Full and honest financial disclosure is not optional — it is a legal requirement in all property settlement matters under the rules of the Federal Circuit and Family Court of Australia. Each party must disclose all assets, liabilities, income, and financial resources, including superannuation and trust interests.
Failure to make full disclosure — even unintentionally — can damage credibility and lead to penalties, adverse inferences, or costs orders from the court.
What to do:
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Provide complete disclosure early in the process, including assets held in joint or individual names.
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Include superannuation, trusts, shares, cryptocurrency, and liabilities such as loans and credit cards.
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Work with a family lawyer to ensure your disclosure documents are thorough and compliant.
4. Poor Legal Advice or Representation
Attempting to manage a property settlement without professional guidance often leads to mistakes that are difficult to undo. Property settlements involve complex federal and state laws, strict deadlines, and technical procedures.
Common issues without proper legal advice include:
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Misunderstanding what you’re legally entitled to.
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Failing to formalise agreements properly (for example, not converting an agreement into Consent Orders or a Binding Financial Agreement).
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Missing key filing dates or steps required for court approval.
What to do:
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Engage an experienced family lawyer who specialises in property settlements.
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Avoid “DIY” agreements unless your situation is very simple and amicable.
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Obtain early legal advice to ensure compliance with the Family Law Act and to protect your interests.
5. Emotional Conflict and Poor Communication
Emotions often run high after separation, making rational discussions about finances difficult. Unresolved resentment or mistrust can stall negotiations or lead to litigation that might otherwise have been avoided.
Emotional conflict can prevent practical decisions and extend the time and cost of finalising a settlement.
What to do:
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Focus on the ultimate goal: a fair and legally sound outcome.
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Use professional mediators or family dispute resolution services to facilitate constructive discussions.
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Allow your lawyer to handle sensitive communications to help maintain neutrality and calm.
Frequently Asked Questions (FAQs)
How long does a property settlement take in Queensland?
It depends on the complexity of the matter. Simple cases can be finalised in a few weeks, while more complex or contested matters can take several months or longer.
Do I need a lawyer for a property settlement?
While not legally required, a lawyer ensures you understand your rights, avoid costly mistakes, and comply with legal procedures.
Can we settle without going to court?
Yes. Many settlements are finalised through negotiation, mediation, or formalised as Consent Orders or a Binding Financial Agreement, without needing a court hearing.
What if my former partner is hiding assets?
You can request disclosure and, if necessary, seek court orders compelling your ex-partner to provide complete financial information.
Is superannuation included in property settlements?
Yes. Superannuation is treated as part of the overall asset pool and can be split between parties through a formal Superannuation Splitting Order or financial agreement.
What happens if we cannot agree on a settlement?
If negotiations fail, either party can apply to the court for property orders under the Family Law Act 1975 (Cth).
How are debts treated?
All debts — personal, joint, or business-related — are included in the asset pool and considered when dividing property.
Conclusion
Property settlements often become complicated when documents are missing, communication breaks down, or key legal steps are misunderstood — but with the right support, most of these issues can be prevented.
At VM Family Law, our experienced Queensland family lawyers can guide you through every stage of the settlement process, helping you gather proper documentation, understand your entitlements, and negotiate a fair outcome. We also offer family dispute resolution and family law mediation services to help resolve disagreements early and reduce stress, cost, and delay.
If you want to protect your financial future and avoid the common reasons property settlements go wrong, contact VM Family Law on 07 3447 8966 or visit www.vmfamilylaw.com.au to get clear, practical advice tailored to your situation.
Official Information Sources
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Queensland Law Handbook – Property Settlement After Separation
https://queenslandlawhandbook.org.au/the-queensland-law-handbook/family-law/property-settlement-after-separation/ -
Legal Aid Queensland – Dividing Property After Separation
https://www.legalaid.qld.gov.au/Find-legal-information/Relationships-and-children/Separating-and-divorce/Dividing-property-after-separation -
Federal Circuit and Family Court of Australia – Property and Financial Cases
https://www.fcfcoa.gov.au/fl/property -
Queensland Government – Separation and Divorce: Property Settlements
https://www.qld.gov.au/families/legal/divorce/property-settlement -
Family Relationships Online – Property and Money After Separation
https://www.familyrelationships.gov.au/separation/property-and-money -
Queensland Law Society – Family Law Resources and Legal Guidance
https://www.qls.com.au
