De facto separation and property settlement in Queensland: what you need to know

De facto separation does not mean you simply keep what is in your name

A common misconception about de facto relationships is that, because the parties were not married, each person simply keeps the property registered in their own name.

That is not necessarily how family law works.

If your relationship meets the legal requirements for a de facto relationship, property can be divided under the Family Law Act 1975 (Cth) in broadly the same way as property following the breakdown of a marriage.

That does not mean everything is automatically divided equally. There is no automatic 50/50 rule.

The outcome depends on the circumstances of the relationship - including what each person owns and owes, the contributions each has made and their circumstances going forward.

There are also some requirements that apply specifically to de facto relationships and should be considered before trying to work out what a property settlement might look like.

Were you actually in a de facto relationship?

For many couples, this will be obvious. For others, it can be one of the most important questions in the matter.

The law looks at the relationship as a whole.

Relevant things can include:

• how long you were together;
• your living arrangements;
• how you managed money and property;
• whether there was financial dependence or interdependence;
• whether you had children;
• the extent of your commitment to a shared life; and
• how your relationship was seen by other people.

No single factor decides the issue.

This means you do not necessarily have to have lived under the same roof every day to have been in a de facto relationship.

Equally, living together, owning property together or describing each other as partners does not automatically settle the question.

The issue may require closer attention where, for example, a couple maintained separate homes, kept their finances largely separate, had periods of separation and reconciliation, or disagree about when the relationship began or ended.

Registration of a relationship can also be important, but registration does not by itself determine whether a relationship meets the definition used by the federal family law system.

Where the issue is genuinely disputed, the Federal Circuit and Family Court of Australia can determine questions about whether a de facto relationship existed, how long it lasted and when it ended.

There are two different "two-year rules"

This causes a lot of confusion because people often hear that a de facto relationship must have lasted two years.

There are actually two quite different two-year issues.

1. Does the relationship qualify for a property claim?

A relationship of at least two years is one way of qualifying.

But it is not the only way.

A property claim may still be possible where the relationship lasted less than two years if, for example:

• there is a child of the relationship;
• the relationship was registered under an applicable law; or
• one person made substantial contributions and serious injustice would result if no order could be made.

The particular circumstances need to be considered.

2. How long do you have after separation?

This is a separate issue.

Once a de facto relationship has ended, an application for property settlement will generally need to be made within two years of the end of the relationship.

If that period has expired, proceedings may still be possible in some circumstances. For example, both parties may consent to an application being made out of time, or the Federal Circuit and Family Court of Australia may give permission where the legal requirements for doing so are satisfied.

But this should not be treated as a routine extension.

If the two-year deadline is approaching and the property matter has not been formally resolved, it is sensible to obtain advice before the deadline passes.

Continuing to negotiate does not itself mean the time limit can be ignored.

What property is taken into account?

The family law process is not confined to jointly owned assets.

The current financial position needs to be identified. In practical terms, that means working out what each person owns now and what each person owes now.

That can include things such as:

• the home and other real estate;
• bank accounts and cash;
• shares and other investments;
• businesses and company interests;
• relevant interests associated with trusts;
• vehicles and other significant property;
• superannuation; and
• mortgages, loans and other liabilities.

Property held in one person's name can still be relevant.

So can property that one person owned before the relationship, received by inheritance, or acquired after separation.

That does not mean all of those things will be treated in exactly the same way.

When and how something was acquired, and what happened during the relationship, can be very important when the overall outcome is assessed.

Superannuation is also part of the financial picture. In an appropriate property settlement, superannuation can be divided between former partners.

How is a property settlement worked out?

There is no calculator that produces the correct percentage, and there is no rule that the process starts at 50/50.

Changes to the family law system that took effect on 10 June 2025 set out more clearly the matters that are considered when working out a property settlement.

In plain terms, the important questions are these.

What do you each own and owe?

Before anyone can sensibly discuss how property should be divided, there needs to be a reasonably accurate picture of the financial position.

That is why financial disclosure is important.

Both people are expected to be open about relevant financial information and documents. That obligation is not something that only begins once Court proceedings have been filed.

In some matters, the main task is simply collecting the relevant documents.

In others, valuations or further investigation may be required - particularly where there is a business, trust, company, complex investment, disputed debt or disagreement about the value of property.

What did each person contribute?

Contributions are broader than who earned the most money.

They can include:

• money and property brought into the relationship;
• income and savings;
• mortgage and other financial payments;
• inheritances and gifts;
• work performed in a business or on property; and
• contributions made after separation.

They also include non-financial contributions.

Caring for children, running a household and supporting the family are relevant contributions even though they do not appear in a bank statement.

The importance of a particular contribution depends on the relationship as a whole.

For example, substantial property brought into a short relationship may have a different significance from property brought into a long relationship where both people have contributed in many different ways over time.

There is no universal formula.

What are each person's circumstances now and going forward?

The law also looks beyond the history of the relationship.

Depending on the circumstances, things such as age, health, income, earning capacity, care of children, housing needs and financial resources can affect the outcome.

Debts also need more than a quick glance at whose name appears on the account.

How a liability arose, why it was incurred, whether it is likely to be enforced and the circumstances surrounding it can matter when deciding how responsibility for it should ultimately be dealt with.

The fact that a debt legally exists does not necessarily mean that it will simply be deducted dollar-for-dollar from the property available for division.

Has family violence had a financial effect?

Since June 2025, the law expressly recognises that family violence may affect a property settlement where it has had a relevant effect on the parties' financial circumstances or contributions.

For example, family violence may have affected a person's ability to work, earn an income, participate in financial decisions, make contributions or establish themselves financially after separation.

The purpose is not to punish a person through the property settlement or to award compensation for family violence.

The question is whether the violence had a relevant financial or economic effect that should be taken into account.

Is the overall result fair?

Ultimately, any order adjusting property must be just and equitable.

In ordinary language, the process is not simply a matter of adding up contributions and applying a mathematical formula.

The overall result must be fair having regard to the circumstances of the particular relationship.

That is why comparing your situation with somebody else's percentage is often not very useful.

Two couples can have property of similar value and still have very different outcomes.

What if money has been spent or property has been sold?

The current law starts with the property and liabilities that actually exist.

That does not mean previous transactions are ignored.

If significant money has been spent, transferred or disposed of, the circumstances may still be relevant to the property settlement - particularly where one person's conduct has affected the property available to the parties.

There is, however, no simple rule that money which has been spent is put back into the property pool as though it still exists.

The reasons for the expenditure, what happened to the money and whether the conduct had a significant financial effect can all matter.

This is an area in which the law has developed following the 2025 reforms, so substantial or unusual transactions after separation should be identified rather than assumed to be irrelevant.

What if you have already agreed on a division?

Reaching agreement is an important step.

But reaching agreement and legally finalising the property settlement are different things.

A common way of formally finalising an agreed property settlement is through Consent Orders made by the Federal Circuit and Family Court of Australia.

This does not ordinarily require the parties to attend Court. The proposed orders are submitted to the Federal Circuit and Family Court of Australia, which considers whether the proposed property settlement is just and equitable.

Another legal mechanism is a Financial Agreement made under the Family Law Act 1975 (Cth).

Financial Agreements operate differently from Consent Orders. They are private agreements and are subject to strict statutory requirements, including requirements for independent legal advice. In the case of former de facto partners, there are also particular limits on what a post-separation Financial Agreement can deal with.

For that reason, the two mechanisms should not simply be treated as interchangeable ways of recording the same agreement.

If agreement has been reached, legal advice can address the appropriate steps required to formally and effectively finalise the property settlement.

Simply transferring money, changing the name on an asset or recording an informal agreement may not provide the same legal finality.

What if the two-year period has already passed?

This does not necessarily mean nothing can be done.

The two-year time limit applies to applications for de facto property orders.

If both parties agree to an application proceeding outside the ordinary period, the legislation can allow that to occur. Otherwise, permission from the Federal Circuit and Family Court of Australia may be required before the property claim can proceed.

Financial Agreements operate under a different part of the legislation and have their own requirements.

The important point is that an expired time limit changes the legal position.

It is better to obtain advice about the available pathway than assume either that the claim has disappeared completely or that the time limit does not matter.

Do you have to go to Court?

No.

Many de facto property matters are resolved without contested Court proceedings.

Usually, the first steps are much less dramatic:

• work out the financial position;
• exchange financial disclosure;
• obtain any necessary valuations;
• consider the parties' contributions and current circumstances;
• obtain advice about the range of possible outcomes; and
• explore whether agreement can be reached.

Negotiation may take place directly, through lawyers, at mediation or through another form of dispute resolution.

If Court proceedings do become necessary, there are generally steps parties are expected to take beforehand to try to resolve or narrow the dispute. There are exceptions, including where the matter is urgent, there are safety concerns or it would otherwise be inappropriate to require those steps.

Court proceedings may become necessary where, for example:

• financial information is not being provided;
• property is at risk;
• urgent orders are required;
• the existence or duration of the de facto relationship is disputed;
• there is a substantial disagreement about the property settlement; or
• attempts to resolve the matter have reached an impasse.

What should you do after a de facto separation?

You do not need to begin by deciding whether you should receive 40%, 50%, 60% or some other percentage.

Usually, a better starting point is to get the facts clear.

That may mean:

• identifying when the relationship began and ended;
• working out what property and debts currently exist;
• preserving important financial documents;
• identifying what each person brought into the relationship;
• recording significant inheritances or gifts;
• considering important financial and non-financial contributions;
• identifying significant financial changes since separation; and
• checking when the two-year time limit expires.

Once the factual picture is clearer, legal advice becomes much more useful.

The question can then shift from:

The main point

The end of a de facto relationship can create property rights and obligations that are broadly similar to those arising after the end of a marriage.

But there are some important differences.

In particular, it is worth identifying early:

• whether the relationship meets the legal requirements for a de facto property claim;
• when the relationship ended and when the two-year time limit expires; and
• what the current financial position actually looks like.

From there, the focus can move to the parties' contributions, their current and future circumstances and the practical options for reaching and formally finalising a resolution.