What Is My Wife Entitled to in a Divorce in Australia | A Guide
29/01/2025
Facing divorce brings difficult questions – and one of the most pressing is understanding what each spouse is entitled to. If you’re wondering what your wife may receive in a divorce settlement, the answer isn’t simple.
Australia’s family law doesn’t follow a rigid formula or automatically split assets 50/50. Instead, the Federal Circuit and Family Court of Australia aims for a “just and equitable” outcome based on your unique circumstances.
Here’s what you need to know about divorce entitlements, property settlements, and how the courts determine a fair division of assets.
Quick Answers
- No automatic 50/50 split – Australian law focuses on what’s “fair and equitable,” not equal. Settlements can range from 60/40 to 70/30 or other divisions depending on individual circumstances.
- All assets are considered – This includes property, superannuation, savings, businesses, and debts – regardless of whose name they’re in.
- Four key factors matter – Courts assess contributions (financial and non-financial), future needs, marriage length, and care of children.
- Time limits apply – You must apply for property settlement within 12 months of your divorce becoming final, or seek court permission.
- Spousal maintenance is separate – If one spouse can’t support themselves adequately, the court may order maintenance payments beyond the property settlement.
The Legal Framework: Family Law Act 1975
Property settlements in Australia are governed by the Family Law Act 1975, which outlines the process for dividing assets and liabilities between divorcing couples. The Act emphasises fairness over strict equality, recognising that every marriage is different.
According to the Australian Bureau of Statistics, 47,216 divorces were granted in 2024, with a median marriage duration of 13.2 years. The median age at divorce was 47.1 years for men and 44.1 for women – meaning most people going through divorce are navigating complex financial situations built over decades.
Understanding “Just and Equitable” Division
When you ask, “what is my wife entitled to?” the law’s answer is: whatever division is fair given all the circumstances. This principle means the court considers the whole picture of your marriage and future needs – not just who earned what money.
The division aims to:
- Recognise both financial and non-financial contributions
- Account for future earning capacity and needs
- Ensure neither party faces undue financial hardship
- Support the ongoing care of any children
A wife who spent 15 years as the primary caregiver while you built your career has made substantial contributions to the family’s financial position – even if she didn’t directly earn income during that time. These contributions are given significant weight.
The Four-Step Process Courts Use
Australian courts follow a structured approach when determining property settlements. Understanding this process helps you see how entitlements are calculated.
Step 1: Identify the Asset Pool
Everything goes into the pool: the family home, investment properties, vehicles, savings accounts, superannuation, business interests, shares, household contents, and even inheritances received during the marriage. Debts like mortgages, personal loans, and credit card balances are also included.
Assets are valued at their current market value, not what you originally paid. For complex assets like businesses, professional valuations may be required.
Step 2: Assess Contributions
The court examines what each spouse contributed to building the asset pool. Contributions fall into three categories:
Financial contributions:
- Income earned during the marriage
- Assets brought into the marriage (like property or savings)
- Inheritances or gifts used for family purposes
- Direct financial support of the household
Non-financial contributions:
- Homemaking and domestic duties
- Renovating or maintaining property
- Building business relationships or goodwill
- Indirect support that enabled the other spouse to work or build their career
Contributions to family welfare:
- Primary caregiving for children
- Supporting a spouse’s education or career advancement
- Managing household finances
- Caring for elderly parents or relatives
Step 3: Consider Future Needs
The court then adjusts the division based on each spouse’s future circumstances:
- Age and health
- Earning capacity
- Care of children
- Financial resources
- Standard of living
Step 4: Determine if the Division Is Just and Equitable
After working through steps 1-3, the court asks: is this outcome fair? If not, adjustments are made. This final check ensures the settlement serves justice for both parties, given all circumstances.
What Assets Are Included in the Settlement?
The Family Home
Your house is typically the most valuable asset in the pool. Even if the property is solely in your name, it’s included in the settlement. In many cases, the family home is sold, and the proceeds are divided. Alternatively, one spouse may retain the home and offset its value with other assets, or buy out the other spouse’s share.
Superannuation
Your superannuation is treated as property and can be split between spouses. This includes employer contributions, personal contributions, and any growth in the fund during the marriage.
The split can be implemented by:
- Splitting the super fund directly (transferring a percentage to your wife’s super account)
- Offsetting super against other assets (you keep super, she receives more of other assets)
Business Interests
If you own a business, its value forms part of the asset pool. Business valuations can be complex and typically require the expertise of an accountant or business valuer. In some cases, you might retain the business but compensate your wife with other assets of equivalent value.
Inheritances and Gifts
Inheritances and gifts received during the marriage are included in the asset pool. However, the court may treat them differently depending on:
- When they were received (early in the marriage vs shortly before separation)
- How they were used (kept separate vs spent on family home or lifestyle)
- Size of the inheritance relative to the overall asset pool
Debts and Liabilities
All debts are taken into account in the settlement. The court considers who incurred the debt, why it was incurred, and who benefits from it. Gambling debts or reckless spending by one spouse may be treated differently from a mortgage on the family home.