- Understand the four‑step property‑settlement framework under the Family Law Act when multiple properties are in the asset pool
- Learn how to compile and value each property within the asset pool accurately
- Discover when an asset‑by‑asset approach might replace the usual global pool method
- Understand how contributions, future needs, and special assets like multiple properties are assessed
Why multiple properties complicate settlements
When your asset pool includes more than one property—a family home, one or more investment properties, holiday houses—the property settlement process becomes more complex. Australian courts most often use the four‑step process under s 79 of the Family Law Act to ensure a just and equitable division
- Identify and value all assets and liabilities
- Assess each party’s contributions (financial, non‑financial, initial, post‑separation)
- Adjust for current and future circumstances under section 75(2)
- Review to ensure the outcome is just and equitable
With multiple properties, you must value each property (perhaps obtaining independent valuations) and decide whether to treat all together as a global asset pool or separately using an asset‑by‑asset approach
Step 1: Gather documentation & value each property
- Titles, loan statements and valuations for each property
- Outstanding mortgages and liability documents
- Any improvements or renovations funded by either party
- Contract for the purchase of the property
- Rental statements from real estate agent managing the property or bank statement where the rental money is paid.
- generally, every detail for each property
Step 2: Contributions (financial & non‑financial)
- Who contributed financially: purchase, mortgage payments, renovations, improvements, inheritances
- Who paid the deposit
- who paid the stamp duty
- Any special payments to reduce the mortgage loan
- Who contributed non‑financially: homemaking, caring for children, property maintenance and repairs etc.
When there are multiple properties, contributions may be assessed separately for each one—especially if one partner inherited one or bought one prior to the relationship
Step 3: Current and future circumstances adjustments
- Age and health
- Care of children under 18
- Income‑earning capacity
- Responsibilities such as mortgage repayments or support obligations
- Any other dependants relying on you or other other party
If one partner remains paying for mortgage costs on one property or needs to retain one to care for children, that may well influence the outcome
Step 4: Just and equitable outcome, global vs asset‑by‑asset
- Assets are recently added to the property pool
- Significant disparity in contribution to one specific property
- Long separation before valuation
Multiple‑property situations often justify this separate approach to ensure fairness
Practical considerations & checklist
- Commission credible independent valuations for each property
- Gather documentation early
- Decide if an asset‑by‑asset approach suits your case
- Seek legal advice before accepting offers or drafting proposals
- Prepare for negotiations to arrive at Consent Orders or a Binding Financial Agreement (BFA)
How CK Lawyers can help you
- Help compile and analyse your multi‑property asset pool
- Engage valuers and review contribution histories
- Advise whether a global or asset‑by‑asset approach is most appropriate
- Draft negotiation proposals, consent orders or BFAs to reflect your interests
- Ensure you meet statutory deadlines and manage liabilities
