Divorce Property Settlement: Who Gets The House In Divorce Settlement?

5 MIN READ | By Evan Thornley | Updated on July 7, 2026

When a relationship ends, one of the biggest financial and emotional questions is often: who gets the house?

For many Australians, the family home is more than an asset. It may be where children live, where long-term memories were made, and where a large portion of household wealth is tied up. During a divorce property settlement, deciding what happens to the house can be one of the most difficult parts of reaching an agreement.

In Australia, there is no automatic rule that the family home is split 50/50, or that one person must keep it. The outcome depends on the full financial picture, each person’s contributions, their future needs, and whether the proposed settlement is fair. Separating couples can resolve property and financial arrangements in several ways, including informal agreement, consent orders, or court proceedings if agreement cannot be reached.

This guide explains how the family home is usually considered in a divorce settlement, what a 70/30 divorce settlement in Australia may mean, and what options may be available if one person wants to stay in the home.

This article is general information only and is not legal, financial or tax advice. You should seek independent legal and financial advice before making decisions about a divorce property settlement.

What Happens To The Family Home In A Divorce Property Settlement?

The family home is usually included in the overall property pool. This means it is considered alongside other assets, liabilities and financial interests, which may include:

Bank accounts
Superannuation
Investment properties
Shares and managed funds
Businesses
Cars and personal assets
Credit cards, personal loans and mortgages
Other debts or financial obligations

Superannuation can also be treated as property for family law purposes, although it is different from other assets because it is generally held in a trust and may require specific splitting arrangements.

In many cases, the family home is the largest asset in the pool. That can make the settlement more complex, especially if one person wants to keep living there but does not have enough cash available to buy out the other person’s share.

Is The Family Home Automatically Split 50/50?

No. The family home is not automatically split 50/50 in Australia.

A common misconception is that divorce or separation means each person receives half of everything. In reality, Australian family law does not apply a fixed formula. The court looks at the overall circumstances and considers whether the proposed division is just and equitable.

This means a 50/50 split may happen in some cases, but it is not guaranteed. Other outcomes, such as 60/40, 70/30 or another division, may be appropriate depending on the facts.

Is A 70/30 Divorce Settlement Common In Australia?

A 70/30 divorce settlement in Australia can happen, but it is not a standard or automatic outcome. It simply means one person receives 70% of the property pool and the other receives 30%.

This may occur where the circumstances justify an unequal division. For example, the court may consider differences in income, earning capacity, care of children, health, age, financial resources, and the contributions each person made during the relationship.

So, what is the average split in a divorce settlement in Australia? There is no single average that applies to everyone. The division depends on the size of the asset pool, the length of the relationship, contributions made by each person, and the future needs of both parties.

How Are Assets Divided In A Divorce Settlement In Australia?

Property settlement is usually assessed by looking at the asset pool, each person’s contributions, their future needs, and whether the final outcome is fair. The Federal Circuit and Family Court of Australia notes that property and financial arrangements after separation can involve property, money, debt and superannuation, and can be resolved through agreement or court processes.

Identify The Full Asset Pool, Including Debts And Superannuation

The first step is to identify the full property pool. This includes assets in either person’s name, jointly held assets, and financial obligations.

For the family home, this usually means looking at:

The current property value
The outstanding mortgage
Any caveats, loans or secured interests
Sale costs if the home is sold
How much equity is available in the property

Home equity is the difference between the market value of the home and the debt secured against it. For example, if a home is worth $1.4 million and the mortgage is $500,000, the available equity is approximately $900,000 before transaction costs or other claims are considered.

Get An Accurate Valuation Of Your Family Home

An accurate valuation is important because the home’s value can materially affect the settlement.

If one person wants to keep the property, the buyout amount is usually based on an agreed or independently assessed value. If the value is too low or too high, one person may receive an unfair result.

For example, if the home is valued at $1.2 million rather than $1.4 million, the difference could affect how much one person needs to pay the other to retain the property.

Consider Both Financial And Non-Financial Contributions

Property settlement is not only about who earned more money.

Financial contributions may include income, savings, mortgage repayments, inheritances or assets brought into the relationship. Non-financial contributions may include caring for children, managing the household, improving or maintaining the property, and supporting the other person’s career or business.

From 10 June 2025, changes to family law property provisions also include consideration of the economic effect of family violence where relevant.

What Are Your Options If You Want To Keep The House After Divorce?

If you want to keep the family home after divorce, there are several possible pathways. The right option depends on your settlement, your borrowing capacity, the mortgage, your income, and whether your former partner agrees.

Buy Out Your Ex-Partner’s Share

A buyout means one person pays the other an agreed amount so they can retain ownership of the home.

For example, if the property pool is divided in a way that gives your former partner an entitlement to part of the home equity, you may need to pay them that amount directly, refinance the mortgage, or use another funding source.

This can be a practical option if you have enough cash, savings, borrowing capacity or accessible equity. However, many people going through divorce do not have spare capital available, especially after legal costs, moving costs and changes to household income.

Refinance The Home Loan In One Name

Another common option is to refinance the home loan so one person becomes solely responsible for the mortgage.

This can work if the lender is satisfied that the person keeping the property can afford the repayments on their own. However, refinancing may be difficult if your income has reduced, you are relying on a single income, or your debt-to-income position has changed after separation.

Refinancing can also increase monthly repayments if you need to borrow more to fund a partner buyout.

Sell The Property And Divide The Proceeds

Selling the home may be the simplest option if neither person can afford to keep it, or if both parties want a clean financial break.

After the sale, the mortgage and selling costs are usually paid, and the remaining proceeds are divided according to the agreed settlement or court order.

The downside is that selling may force one or both people to move before they are ready. It can also be disruptive for children, schooling, routines and community ties.

Continue Co-Owning The Home For A Short Period Of Time

Some separating couples agree to continue co-owning the home temporarily. This may happen where children are still living at home, the market is not favourable, or one person needs more time to arrange finance.

This option can work in amicable divorce settlements, but it requires clear agreements about mortgage repayments, maintenance, insurance, rates, timing, and what happens if one person later wants to sell.

It is important to document any arrangement properly, rather than relying on informal verbal agreements.

Can HomeFlex Help You Stay In Your Home After Divorce?

For some homeowners, the challenge is not wanting to keep the home. The challenge is finding a way to access enough capital to make the settlement work.

LongView’s HomeFlex may be an option for eligible homeowners who need to access equity tied up in the family home, without taking on monthly repayments or compounding interest.

You can learn more here: Access your home equity to stay in your home after a divorce property settlement

How Does HomeFlex Work?

HomeFlex allows eligible homeowners to access a portion of their home equity. In return, LongView receives a share of future capital growth in the home’s value.

There are no monthly repayments and no compounding interest. Instead, repayment can occur later, depending on the agreed terms and your circumstances. Fees and eligibility criteria apply, and the arrangement should be considered carefully with independent advice.

HomeFlex is designed for homeowners who may be asset-rich but cash-constrained. In a divorce property settlement, that may include someone who wants to keep the family home but does not have enough available cash to complete a partner buyout.

You can read more here: Unlock your home equity with HomeFlex

Using Home Equity To Fund A Partner Buyout

If you have substantial home equity, HomeFlex may help provide funds that can be used as part of a settlement arrangement.

For example, a homeowner may need to pay their former partner a settlement amount but may not qualify for a traditional refinance. If the home meets eligibility requirements, HomeFlex could provide access to funds without increasing monthly mortgage repayments.

This can be particularly relevant where:

One person wants to remain in the home
The property has significant equity
Refinancing is not suitable or affordable
Selling would create disruption
The settlement requires a lump sum payment

HomeFlex is not suitable for everyone. The property, location, ownership structure, existing mortgage, valuation and personal circumstances all matter.

HomeFlex Compared With Refinancing Or A Personal Loan

Refinancing and personal loans are common ways to raise money during a divorce settlement, but they can increase debt obligations and monthly repayments.

HomeFlex works differently. Rather than charging compounding interest, LongView shares in a portion of the future capital growth in the home’s value. This may appeal to homeowners who want to preserve monthly cash flow after separation.

That said, HomeFlex is still a significant financial decision. It affects how much future property growth you keep, and you should compare it against other options before deciding.

Important Considerations Before Choosing An Equity Solution

Before using any equity solution after divorce, consider:

Whether the settlement has been legally documented
Whether your former partner agrees to the arrangement
How much equity is available in the home
Whether you can afford the existing mortgage and ongoing property costs
Whether keeping the home is financially sustainable
How the arrangement affects your future plans
Whether you have received independent legal and financial advice

A home can provide stability, but it can also create financial pressure if the ongoing costs are too high. The goal should not simply be to keep the house at any cost. The goal should be to reach a settlement that supports your long-term financial position.

Your Next Steps After A Divorce Property Settlement

If you are going through a divorce property settlement and want to keep the family home, start by getting a clear view of your financial position.

A practical next step is to:

Get legal advice about your property settlement options
Understand the full asset pool, including debts and superannuation
Arrange an accurate valuation of the home
Work out whether you can afford the mortgage and ongoing costs
Compare funding options, including refinancing, selling, or using home equity
Check whether HomeFlex may be suitable for your circumstances

Divorce is already difficult. The financial decisions that come with it should be approached carefully, with clear information and the right advice.

For eligible homeowners, HomeFlex may provide another way to access home equity and stay in the family home after separation, without adding monthly repayments. It is not the right solution for every situation, but it may be worth considering if you want to keep your home and need capital to support a divorce property settlement.