A ‘Property Settlement’ is the term used when parties settle their property affairs by agreement. Usually the settlement provides for each party to retain property and superannuation, and in some cases, the family home may be transferred to one party. The benefit of having your property affairs settled by agreement (and if you are unable to agree, then by Court Order), is that it means that in the future, you have no financial obligation to your former partner, if is a final once and for all, and the property you have following the property settlement is yours and the other party then has no claim against it in the future. There is finality.
You don’t have to wait to settle your property affairs – you can start that process as soon as you separate. However, if you are divorced, then you must attend to the property settlement within a further 12 months after that time, otherwise you may lose your right to do so.