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Conflict with Dividing Assets

Property settlement after separation can be complex, especially when a couple owns a business together.

Jordan and Ivy were married for fifteen years. During their marriage, they built a successful supermarket in a small Queensland town. What started as a shared dream became a well-known local business, supported by years of hard work, long hours, and personal sacrifice.

Over time, the pressure of running the business began to affect their relationship. Disagreements about business decisions became more frequent and eventually carried into their personal lives. After many difficult conversations, Jordan and Ivy decided to separate.

Their separation brought one major question to the surface: what should happen to the supermarket?

Jordan felt exhausted and wanted to sell his share of the business so he could move forward. Ivy felt deeply connected to the supermarket and wanted to continue operating it. Because they could not reach an agreement on their own, they sought legal advice about their property settlement options.

 

Understanding Property Settlement Options

When separating couples divide assets in Australia, they may need to consider property, liabilities, superannuation, business interests, trusts, loans, and other financial resources.

For Jordan and Ivy, the supermarket was not only a business asset. It was also part of their family’s financial future.

With help from their lawyers, they considered two common ways to formalise a property settlement:

  • Consent Orders
  • Financial Agreement

The Federal Circuit and Family Court of Australia explains that financial or property orders can be made by agreement between the parties through Consent Orders or after a court hearing or trial. Once a financial or property order is made, each person affected by the order must follow it

 

Option 1: Consent Orders

Consent Orders are legally binding orders approved by the Court. They can formalise how separated parties divide their property, debts, superannuation, business interests, and other financial matters.

For Jordan and Ivy, Consent Orders offered several advantages:

  • their agreement could be reviewed and approved by the Court
  • the terms would become legally enforceable
  • the supermarket arrangement could be clearly documented
  • both parties would have certainty about their financial responsibilities
  • the risk of future disputes could be reduced

Consent Orders can be a practical option when separated parties have reached an agreement and want that agreement formalised by the Court. Family Relationships Online explains that once Consent Orders are made, they have the same effect as a court order made after a hearing.

 

Option 2: Financial Agreement

A Financial Agreement is a private legal contract between parties. It can set out how property, liabilities, superannuation, and other financial matters will be dealt with after separation.

Financial Agreements can be made before, during, or after a marriage or de facto relationship. They can be useful in some circumstances, especially where parties want a private arrangement without asking the Court to approve the agreement.

However, unlike Consent Orders, a Financial Agreement is generally not reviewed by the Court at the time it is signed. Because of this, disputes may arise later if one party argues that the agreement should not be binding, or that legal requirements were not properly followed.

Legal Aid Queensland recommends getting legal advice if you are considering signing either Consent Orders or a Financial Agreement.

 

Reaching a Legal Conclusion

After considering the advantages and risks of each option, Jordan and Ivy decided to proceed with Consent Orders.

This gave both parties confidence that their agreement would be legally enforceable and formally recognised. Under the terms of the settlement, Ivy would continue managing the supermarket, while Jordan would receive his agreed share of the assets.

With Consent Orders in place, Jordan was able to step away from the business and begin a new chapter. Ivy could continue operating the supermarket with clearer financial certainty.

Most importantly, both parties avoided prolonged conflict and moved forward with a legally structured property settlement.

 

Why Legal Advice Matters in Property Settlement

Property settlement can have long-term financial consequences. This is especially true where a family business, real estate, loans, superannuation, or significant assets are involved.

A family lawyer can help separated parties understand:

  • what assets and liabilities should be included
  • how business interests may be valued
  • whether Consent Orders or a Financial Agreement may be more suitable
  • how to reduce the risk of future disputes
  • what legal requirements must be met before signing documents

From 10 June 2025, changes to the Family Law Act 1975 apply to property settlement matters, including how courts determine property settlement and what courts consider when making property orders. This includes, where relevant, the economic effect of family violence.

Because every property settlement is different, separated couples should seek legal advice before signing any agreement.

Legal Terminology

Consent Orders: Legally binding orders approved by the court that formalise the division of assets or parenting arrangements. Consent Orders offer clarity and enforceability, reducing the risk of future disputes. While the court reviews the proposed Orders, its role is to ensure the agreement meets legal standards rather than to guarantee fairness.

Financial Agreement: A private, legally binding contract that outlines the division of assets, liabilities, and other financial matters. Financial Agreements can be entered into before, during, or after a marriage or de facto relationship. Although enforceable if the legal requirements are met, these agreements are not reviewed by a court at the time of signing, which can sometimes lead to disputes later if fairness or procedural compliance is challenged.

Frequently Asked Questions

1. What is property settlement after separation?

2. What happens to a business in a property settlement?

3. What are Consent Orders in a property settlement?

4. What is the difference between Consent Orders and a Financial Agreement?

5. Do I need a family lawyer for property settlement?

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