What Happens to Assets Acquired After Separation but Before a Property Settlement?

Separating from a partner is rarely simple. While the emotional break can feel immediate, the financial side is far less straightforward.

Many people assume that the property pool “stops” the day they separate — but under Australian family law, that isn’t how it works. In most cases, the assets and debts that exist at the time you reach a settlement (or when a court decides for you) are what’s taken into account.

That means money you earn, a house you buy, or even an inheritance you receive after separation can still form part of the property settlement. Understandably, this can come as a shock, especially if you thought you’d be building a fresh start entirely on your own.

In this article, we’ll unpack how the law treats post-separation assets and debts, why the timing of settlement matters so much, and what steps you can take to protect yourself.

The short answer

1. The pool is usually assessed at the time of settlement (or hearing). So assets and debts that exist by then may be counted, even if they came along after separation.
   
2. How they’re shared isn’t automatic. The way you built or paid for those assets after separation can be recognised through contribution and future-needs adjustments to percentages.
   
3. Courts must be satisfied it’s “just and equitable” to alter property interests at all, and then apply well-established steps for working out a fair division.
   

The Legal Framework

Australian courts use a structured approach when deciding property settlements under the Family Law Act 1975 (Cth) (for married couples) and equivalent provisions for de facto partners.

In a nutshell:

1. Identify and value the current property and liabilities (the asset pool) — what exists now, not just at separation.
   
2. Assess contributions (financial, non-financial, and homemaker/parenting) across the relationship and after separation. Post-separation efforts still count.
   
3. Consider future-needs factors (e.g., income disparity, care of children, health, family violence’s economic impact) and make percentage adjustments if appropriate.
   
4. Check the outcome is just and equitable overall (reinforced by the High Court in Stanford v Stanford).
   

From 10 June 2025, amendments clarify the framework and expressly require the courts to consider the economic effect of family violence, and even address pets in property settlements. These changes apply broadly to separating couples.

What counts as “post-separation property”?

“Property” is broad: any legal or equitable interest you or your ex holds — houses, cash, shares/crypto, businesses, vehicles, trusts (depending on control), and superannuation (which has its own splitting rules). Financial resources (like a discretionary trust you might benefit from, or a likely inheritance) aren’t “property” to divide, but can influence the percentages.

Key point: If it exists by the time you settle, it’s usually in the mix — but how it’s shared depends on contributions and needs.

Nardi Lawyers are here to help you to achieve a just and equitable property settlement. As leading family lawyers in Melbourne and surrounds, we will consider your circumstances and provide you with thorough and accurate advice as to your entitlements.

How Common Post-Separation Scenarios Are Treated

1) Salary, savings and investments you build after separation

Ongoing income you earn and the nest egg you build after separation can be included in the pool. However, the law recognises that you created those assets post-split. That effort is recognised as a post-separation contribution, which can tilt the percentages in your favour. The same logic applies if a share portfolio you actively managed grew because of your work after separation.

2) A home you buy post-separation

The home will typically be identified in the pool because it exists at settlement. In negotiations or at court, the outcome may be that you keep the property (because it’s in your name and you paid for it), but there may be an offset via a cash adjustment or a slightly higher percentage of the remaining pool to your ex so the overall division remains fair. Sometimes, courts or parties use a “two-pool” approach (separating the pre- and post-separation assets) if that’s the fairest way to reflect who contributed what.

If you purchase with a new partner, only your interest (e.g., your 50%) is in your pool. Third-party interests complicate things, but they don’t drag your new partner’s share into your family law case.

3) Superannuation earned after separation

Super is part of the property regime and can be split into married and de facto matters nationwide (with specific pathways for Western Australia). Your post-separation super contributions may be  counted in the pool, with recognition of your additional contribution since separation. Note: from 28 September 2022, WA de facto couples can have a super split as part of their property settlement, bringing WA into line with the rest of Australia.

4) Inheritances you receive after separation

There’s no automatic exclusion. Inheritances are commonly treated as property, but courts have discretion about how to account for them. Often, the recipient retains the inheritance, but the other party receives a higher share of the remaining assets, or the matter is treated using a two-pool approach to avoid unfairness. The key is timing, the size of the inheritance relative to the pool, and whether the other party contributed to preserving or enhancing it.

5) Lottery wins or windfalls after separation

Windfalls can be included, but outcomes vary sharply with the facts. In Elford v Elford (2016), significant lottery winnings remained effectively the winner’s contribution because finances were kept separate and the win wasn’t treated as a joint endeavour. That meant the other party received a small share of the overall pool. Context matters — different facts can lead to different outcomes.

6) A business you start (or grow) after separation

Businesses you create or expand post-separation are usually part of the pool at their current value, but your post-separation toil is credited as a contribution. Passive growth (e.g., market uplift) is weighed differently from active growth driven by your personal effort.

7) Debts you take on after separation

Debts are part of the picture too. If a debt was reasonably incurred (e.g., renting somewhere to live, necessary legal costs), it’s usually recognised. But if someone wastes money — for example, reckless gambling or a spending spree — courts can address this via “add-backs” or percentage adjustments so the other party isn’t unfairly penalised. (Kowaliw v Kowaliw set the waste principle; later appellate guidance limits when “notional property” is added back after Stanford and Bevan.)

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When can post-separation assets be “quarantined”?

Occasionally, courts (or negotiating parties) treat post-separation property as a distinct second pool. You’ll see this where fairness demands it — for instance, a large inheritance received well after separation with no connection to the relationship, or where the overall pool is modest and including the asset would skew justice. Even then, the court must still look at all property that exists at the hearing, and it has discretion in how it deals with post-separation items to reach a fair result.

What about “passive” vs “active” growth?

If an asset you owned at separation simply rose with the market, that increase is typically shared via the contributions analysis (and sometimes via future-needs adjustments). If value increases because of your personal effort after separation (e.g., renovating a property yourself, steering a turnaround in a business), that’s a post-separation contribution which can shift percentages in your favour.

Timing matters (a lot)

You don’t have to wait for a divorce to sort out property. But there are time limits to start a court application if negotiations stall: generally 12 months from when a divorce order takes effect for married couples, and 2 years from the end of a de facto relationship.

If you’re out of time, you can sometimes ask the Court for leave (permission), but it’s not guaranteed.

Practical tip: delays can increase the chance that post-separation earnings or windfalls enlarge the pool. If you’ve separated, get advice and move the property process along.

Pets, disclosure and other 2025 tweaks to know

1. Pets: From 10 June 2025, the Act provides a framework for who keeps the family pet in property settlements.
   
2. Disclosure: Your duty of full and frank financial disclosure is now elevated in the Act. Expect stronger emphasis on exchanging bank statements, tax returns, super info and valuations.
   
3. Family violence: The economic effects of family violence are a specific consideration in property division.

Practical steps to protect yourself right now

1. Record the separation date and keep clean financial records from that point on (bank statements, payslips, super statements, asset valuations). It makes post-separation contributions easier to prove.
   
2. Avoid commingling post-separation savings with joint accounts and think carefully before taking on new debt. If you must, keep documentation explaining why.
   
3. Value key assets (home, business, super) so you can negotiate from facts, not guesses. Courts will value the current date anyway.
   
4. Formalise the deal once you agree — either by Consent Orders filed with the Court or a Binding Financial Agreement (BFA) — so it’s final and enforceable.
   
5. Get early legal advice. A tailored strategy can save you far more than it costs, especially where there’s an inheritance, a new property, a business, family violence or a complex trust.
   

Bottom line

If you’ve separated but haven’t finalised your property settlement, post-separation assets and debts are very likely part of the conversation. That doesn’t mean you’ll split them 50/50 — it means the way they were created and who needs what will be recognised in your final percentages. The sooner you get clarity, the more control you’ll have over the outcome.

Every situation is different, and small facts can change the answer. Nardi Lawyers advises clients across Australia on practical, negotiated property outcomes — and, where needed, robust representation in the Federal Circuit and Family Court of Australia.

Book a confidential chat today and get a clear plan for your property settlement.

FAQs

Does divorce change what’s in the pool?
Not directly. The asset pool is usually assessed when you settle, not at separation or divorce. Divorce mainly starts the 12-month clock if you haven’t already formalised the property side.

Will my ex get “half” of an asset I bought after we split?
Not automatically. The asset is identified, then your post-separation contribution and both parties’ future needs are weighed to reach a percentage outcome. Often, the acquirer keeps the asset with an offset elsewhere.

Are gifts from family treated like inheritances?
Usually, yes — they’re property if they exist by settlement. The court looks at the circumstances (gift to you alone? both of you? used for the family?). The treatment varies with the facts and overall fairness.

What if my ex wasted money after we separated?
Courts can account for wasteful or reckless spending through add-backs or percentage adjustments so you’re not unfairly disadvantaged. (Kowaliw, and later cases after Stanford/Bevan, guide when that’s appropriate.)

I’m in Western Australia and de facto — can we split super now?
Yes. Since 28 September 2022, WA de facto couples can split superannuation as part of their settlement.