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Family Law / HNW

High Net Worth Property Settlements in Victoria

Property settlements involving asset pools over five million dollars require a different approach. Valuation becomes the central battleground. Trust structures, private equity interests, SMSFs, international assets, and illiquid wealth all need careful handling. Pentana Stanton works on high net worth property matters across Victoria where these complexities meet.

Key takeaways

  • Asset pools above five million dollars usually turn on valuation methodology, valuation date, and the treatment of illiquid interests rather than the headline percentage split.
  • Section 79 of the Family Law Act 1975 (Cth) applies the same four-step framework regardless of pool size, but Stanford v Stanford and the just and equitable threshold remain a real consideration in HNW matters.
  • SMSFs are split under Part VIIIB by payment splits or interest splits, with implications for tax, contribution caps, and the trustee corporate structure.
  • Disclosure obligations under the Federal Circuit and Family Court Rules 2021 (Cth) extend to overseas assets, beneficial interests, and trust positions, and non-disclosure carries serious cost and credibility consequences.
  • Spousal maintenance for high income earners is not a relic. Sections 72 and 75(2) continue to operate where there is a real disparity in earning capacity post-separation.
i.

What this practice area covers

This page anchors our work on property settlements involving complex pools, typically above five million dollars in net wealth. The cluster includes founders and operating shareholders of private companies, professional partners with carried interest, executives with significant equity compensation, beneficiaries of family trusts, owners of investment property portfolios, and clients with material assets held outside Australia.

The work differs from standard property settlement work along three axes. The asset pool is dominated by illiquid interests that require independent valuation, not bank balances. The structures involved, including discretionary trusts, holding companies, unit trusts, and self-managed superannuation funds, all require analysis before any negotiation can be sensible. And the tax and structuring consequences of the settlement are often as material as the split itself, because seven-figure transfers between separating spouses can trigger CGT, stamp duty, Division 7A, and superannuation issues that smaller matters do not.

We act on these matters from Melbourne CBD and Dandenong, often in coordination with the client's accountants, family office, corporate counsel, and overseas advisers. We do not act on consumer-volume property work.

ii.

The legal framework in Australia

High net worth property settlements are governed by the Family Law Act 1975 (Cth) and applied by the Federal Circuit and Family Court of Australia. Section 79 sets the four-step approach: identify the pool, assess each party's contributions, assess each party's future needs, and consider whether the proposed division is just and equitable. Sections 72 and 75(2) govern spousal maintenance, including the future needs adjustments that often matter most in HNW outcomes.

Stanford v Stanford (2012) 247 CLR 108 remains the threshold authority. The High Court confirmed that the Court must be satisfied it is just and equitable to make any order altering existing property interests at all. For separated couples this is rarely an obstacle, but in HNW matters where one party seeks to keep specific assets quarantined, including pre-relationship wealth and inherited assets, the Stanford threshold is engaged in substance even if not always in form.

Kennon v Spry (2008) 238 CLR 366 governs the treatment of family trusts. Where one spouse effectively controls a discretionary trust, the trust assets can be treated as that spouse's property under section 79. The High Court declined to draw a bright line, and the analysis turns on control, the trust deed, and the practical history of distributions. We have written separately on trusts in family law and the cluster anchored at Trusts and Family Law in Victoria.

On valuation methodology, Salmon & Salmon [2020] FamCAFC 134 is a useful Full Court decision on competing expert valuations and the gateway for departing from an appointed single expert. It is regularly engaged in matters where the parties have instructed competing experts rather than a single expert, which remains the most contested early decision in HNW property work.

Self-managed superannuation funds are split under Part VIIIB of the Family Law Act, by either a payment split or an interest split, depending on the fund's structure and the parties' objectives. The interaction with the Superannuation Industry (Supervision) Act 1993 (Cth) and the trust deed, including the corporate trustee composition, often dictates the splitting mechanism rather than the family law preferences. SMSF disputes in family law are a meaningful workstream in their own right.

Disclosure is governed by the Federal Circuit and Family Court Rules 2021 (Cth), particularly the duty of full and frank financial disclosure that runs from the start of negotiations through to final orders. The duty extends to overseas assets, beneficial interests, and trust positions. Non-disclosure carries serious consequences, including adverse inferences, costs orders, and the risk of consent orders being set aside.

iii.

How we work across this area

Valuation strategy is usually the first decision that matters. Before any disclosure exchange, we work through whether to pursue a single expert by consent, two experts with a Court-supervised process, or an early forensic accounting review to test the other side's financial position. The methodology decision, including the treatment of minority discounts, the use of capitalisation versus DCF, and the valuation date, is often more determinative of outcome than the section 79 percentage assessment.

We work alongside forensic accountants, business valuers, structural tax advisers, and offshore counsel where relevant. For matters with international assets, including property in the United Kingdom, Hong Kong, Singapore, and the United States, we coordinate disclosure timelines and enforcement strategy from the outset. Disclosure is treated as an offensive workstream, not a defensive one.

Tax-aware settlement structuring is treated as a default, not an add-on. We routinely model after-tax outcomes for proposed divisions before they are advanced as offers. Most of the value loss in HNW property settlements does not come from the percentage split. It comes from poorly structured transfers, missed CGT rollovers under section 126-5 of the Income Tax Assessment Act 1997 (Cth), and avoidable Division 7A exposure. Settlements that look identical at the headline level produce materially different net positions.

Frequently asked

Questions HNW clients ask before they engage

There is no statutory definition. As a working description, the matters anchored to this hub typically involve net asset pools above five million dollars, with significant value held in private companies, family trusts, self-managed superannuation funds, investment portfolios, or assets held outside Australia. The defining feature is structural complexity rather than headline value alone. A pool of three million dollars dominated by an interest in a discretionary trust and a private operating company will often present the same questions as a larger pool held in straightforward form.
Private company interests are valued by an independent expert. Most matters use a single expert appointed by consent under the Family Court process, although in contested matters each party may obtain its own valuation. The expert assesses fair market value or fair value as instructed, applying capitalisation of future maintainable earnings, discounted cash flow, or net asset value methodologies, depending on the business. Methodology disputes, including the application of minority discounts and the treatment of related party transactions, often determine the outcome more than the percentage split. The valuation date is also live, with the Court generally adopting the date of trial unless there is reason to depart.
Self-managed superannuation funds are split under Part VIIIB of the Family Law Act. There are two principal mechanisms: a payment split, where a percentage of future benefit is allocated to the non-member spouse, or an interest split, where a separate interest is created and rolled over to a different fund. Most HNW separations now use interest splits where possible, since they sever the trustee relationship cleanly and avoid future entanglement. The mechanics depend on the trust deed, the corporate trustee structure, and the underlying asset composition. SMSF splits have CGT and stamp duty implications that need to be modelled before final orders are made.
Yes. The duty of full and frank financial disclosure under the Federal Circuit and Family Court Rules 2021 (Cth) extends to all assets, wherever located, in which a party has a legal or beneficial interest. This includes property held overseas, interests in offshore trusts and companies, and assets held through nominees. Non-disclosure carries serious consequences, including adverse inferences against the non-disclosing party, indemnity costs orders, and the risk of consent orders being set aside if disclosure failures emerge later. For matters with overseas assets, disclosure planning and enforcement strategy should be addressed at the start, not at trial.
Spousal maintenance is governed by section 72 of the Family Law Act, with future needs assessed under section 75(2). The threshold is that one spouse is unable to support themselves adequately, and the other has the capacity to pay. In HNW matters, maintenance is most commonly ordered on an interim basis to preserve the standard of living during proceedings, and as periodic maintenance for a defined post-separation period where a spouse needs to retrain or re-enter the workforce. Lump sum maintenance is also available and is sometimes preferred for its finality. The treatment of senior remuneration, including bonuses, equity awards, and carried interest, requires careful evidence and modelling.
Speak with us

Senior counsel from the first conference, where the pool justifies it.

We act on HNW property settlements across Victoria, working alongside forensic accountants, structural tax advisers, and offshore counsel where the matter requires it. Initial consultations are confidential and run by senior practitioners.

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See also: Family Law Services, Division of Assets, Binding Financial Agreements, SMSF Disputes.