Information Centre · Family Law
How Are Contributions Assessed in a Divorce Property Settlement?
Financial, non-financial, homemaker and parenting contributions in an Australian family-law property settlement under s 79 or s 90SM of the Family Law Act 1975 (Cth) as in force from 10 June 2025.
Key points
- Under s 79 (married) and s 90SM (de facto) of the Family Law Act 1975 (Cth) as in force from 10 June 2025, the Court considers each party's financial, non-financial and homemaker or parenting contributions to the property and to the welfare of the family across the whole relationship and, where relevant, after separation — there is no automatic dollar value or fixed percentage.
- Financial contributions include property or money brought in, wages, savings, mortgage payments, debt reduction, business capital, investments, inheritances and gifts of money, redundancy and compensation payments, superannuation, tax refunds, sale proceeds, rental income and trust or company distributions; source, timing, use and preservation each affect weight.
- Non-financial, homemaker and parenting contributions include unpaid labour, renovations and improvements, business administration, household management, childcare, school and medical coordination, and support that enabled the other party to earn or build property; the Act does not treat these as inferior to financial contributions.
- Contributions to businesses, trusts and superannuation require careful separation of personal contributions from entity assets and income — control of a trust or company does not automatically make its assets personal property, and retained earnings and reasonable remuneration must not be double-counted.
- Sections 79 and 90SM as amended require the Court to consider the economic effect of any family violence where the law and evidence support it; the focus is on measurable effect rather than punitive compensation, and care is required to avoid double counting with the current-and-future-circumstances stage.
- Chapter 6 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 requires full and frank financial disclosure; applications should be prepared with the s 44 time limits in mind (12 months from divorce; 2 years from end of de facto).
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Contributions are one of the matters an Australian family court considers when deciding how, if at all, to alter property interests between separated parties. This guide summarises how contributions are assessed under the current framework and highlights the issues that typically require careful evidence.
Statutory framework
Under s 79 (married) and s 90SM (de facto) of the Family Law Act 1975 (Cth) as in force from 10 June 2025, the Court identifies the parties' existing legal and equitable rights, interests and liabilities; considers the contributions of each party; considers each party's current and future circumstances; and must be satisfied under s 79(2) or s 90SM(3) that any alteration is just and equitable in all the circumstances. There is no statutory four-step test and no fixed percentage.
Financial contributions
Financial contributions include property or money brought into the relationship, wages and salary, savings, mortgage deposits and payments, debt reduction, business capital, investments, inheritances and gifts of money, redundancy and compensation payments, superannuation, tax refunds, sale proceeds, rental income and trust or company distributions. Source, timing, use and preservation each affect weight.
Non-financial, homemaker and parenting contributions
Non-financial contributions include unpaid labour, renovations, repairs, property and business administration, bookkeeping and family finance management. Homemaker and parenting contributions include household management, childcare, school and medical coordination and support that enabled the other party to earn or build property. The Family Law Act expressly requires these contributions to be considered and does not treat them as inferior to financial contributions.
Timing: initial, during and post-separation
Contributions may be made at the start of the relationship, during the relationship and after separation. Property owned before the relationship is not automatically excluded from the pool; the general approach is to consider it at present value with the bringing-in weighed as an initial financial contribution. Post-separation contributions are considered on the same statutory footing; there is no automatic dollar-for-dollar credit for outgoings paid after separation.
Businesses, trusts and superannuation
Personal contributions to a business or trust are distinct from the entity's underlying assets or income. Control of a trust or company does not automatically make the entity's assets the individual's property; retained earnings and reasonable remuneration must not be double-counted. Superannuation may be part of the property pool and split under Part VIIIB or the de facto equivalent, subject to the Family Law Rules and procedural fairness to the trustee. See the superannuation splitting guide.
Gifts, loans and inheritances
Whether a payment from a family member is a gift, an enforceable loan, a secured debt or a contribution is a question of fact and law. Documentation, conduct, repayment history and the parties' intentions are all relevant. Inheritances are considered on the facts under s 79 or s 90SM; they are not automatically retained by the recipient.
Economic effect of family violence
Section 79 and s 90SM as amended require the Court to consider the economic effect of any family violence, where the law and evidence support it. The focus is on measurable effect rather than punitive compensation. Care is required to avoid double counting between the contribution stage and the current-and-future-circumstances stage.
Disclosure and evidence
Chapter 6 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 requires full and frank financial disclosure. Useful evidence typically includes a relationship and asset chronology, financial records, tax returns, business and trust documents, superannuation statements, valuation and expert evidence where proportionate, and records of renovations or business work. Applications should also be prepared with the s 44 time limits in mind — see the time limits guide.
Frequently Asked Questions
What is a 'contribution' in an Australian family-law property settlement?
It is a matter the Court takes into account when assessing what one or both parties did, paid, brought in, preserved or sacrificed in relation to the property or the welfare of the family. Contributions include financial contributions to property, non-financial contributions to property, and contributions as homemaker and parent. There is no fixed dollar value or fixed percentage for any category, and the assessment is holistic and evidence-based.
What statutory framework applies from 10 June 2025?
The Court applies the amended s 79 (married) and s 90SM (de facto) of the Family Law Act 1975 (Cth). It identifies the parties' existing legal and equitable rights, interests and liabilities; considers each party's contributions; considers each party's current and future circumstances; and must be satisfied that any alteration of interests is just and equitable in all the circumstances. There is no mandatory statutory four-step test and no automatic percentage.
How are financial contributions assessed?
Financial contributions include property or money brought into the relationship, wages, savings, mortgage payments, debt repayment, business capital, investments, inheritances and gifts of money, redundancy and compensation payments, superannuation, tax refunds, sale proceeds, rental income and distributions. Source, timing, use, preservation and any subsequent depletion are all relevant to weight.
How are non-financial and homemaker or parenting contributions assessed?
Non-financial contributions include unpaid labour, renovations and improvements, repairs, property and business administration and bookkeeping. Homemaker and parenting contributions include household management, childcare, school and medical coordination, and support that enables the other party to earn or build property. The Family Law Act expressly requires these contributions to be considered, and they are not treated as inferior to financial contributions.
How are initial and post-separation contributions treated?
Contributions may be made at the start of, during and after the relationship. Property owned before the relationship is not automatically excluded from the pool; it is generally considered at present value with any bringing-in weighed as an initial financial contribution. Post-separation contributions are considered on the same statutory footing and are fact- and evidence-specific; there is no automatic dollar-for-dollar credit.
How are gifts, loans and inheritances treated?
Whether a payment from a family member is a gift, an enforceable loan, a secured debt or a contribution is a question of fact and law. Documentation, conduct, security, repayment history and the parties' intentions are all relevant. Inheritances are considered on the facts under s 79 or s 90SM; they are not automatically retained by the recipient. Treatment depends on timing, use and the overall justice of the outcome.
How are businesses, trusts and superannuation approached?
Personal contributions to a business or trust are distinct from the entity's assets or income. Control of a trust or company does not automatically make the entity's assets the individual's property; retained earnings and reasonable remuneration must not be double-counted. Superannuation may be part of the property pool and split under Part VIIIB or the de facto equivalent, subject to the Family Law Rules and procedural fairness to the trustee. Expert accounting or valuation evidence is often required.
Is family violence relevant to the contribution assessment?
Section 79 and s 90SM as amended require consideration of the economic effect of any family violence, where the law and evidence support it. The focus is on measurable effect rather than punitive compensation. Where a matter (such as career interruption) is relevant at both the contribution stage and the current-and-future-circumstances stage, care must be taken to avoid double counting.
What evidence is generally needed?
Chapter 6 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 requires full and frank financial disclosure. Useful evidence typically includes a chronology of the relationship and assets, bank and loan statements, tax records, employment history, business and trust documents, superannuation statements, valuation and expert evidence where proportionate, records of renovations or business work, and evidence going to any economic effect of family violence.
How does the contribution assessment interact with time limits?
Property applications between married parties must ordinarily be filed within 12 months of the divorce order taking effect (s 44(3); leave under s 44(4)). Applications between eligible former de facto parties must ordinarily be filed within 2 years of the end of the relationship (s 44(5); leave under s 44(6)). Legal advice should be obtained before any irreversible step, particularly where a deadline is approaching or has passed.
How Parke Lawyers Can Help
Parke Lawyers acts for spouses, parents, business owners and other affected parties on contributions and property settlement under sections 79 and 90SM as amended with effect from 10 June 2025, and on the associated business, trust, tax and estate issues, through our Family Law and Litigation & Dispute Resolution teams. Engage us early so contributions and the evidence supporting them can be identified and documented from the outset.
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Our family law team can advise on how contributions are likely to be assessed in your circumstances and on the evidence needed.
This article is general information only and does not constitute legal advice. Please obtain advice tailored to your circumstances.