How Property Settlement Mediation Works in Australia

Property mediation normally works from the full property pool of the relationship: real estate, savings, superannuation, vehicles, businesses and debts, whether held jointly or in one name. Each party is expected to give full and frank disclosure of their financial position, so the negotiation is grounded in accurate information rather than guesswork.

The discussion usually considers the same broad matters a court would look at: what each party contributed to the relationship, financially and otherwise, and what each party’s current and future circumstances look like, including income, health and care of children.

The legal framework moved in 2025. Amendments to the Family Law Act commenced on 10 June 2025, and courts must now consider the effect of family violence on a party’s ability to contribute during the relationship and on their current and future circumstances. Economic and financial abuse is also more clearly recognised as family violence. Mediators working in property matters need to understand this framework, because it shapes what a fair outcome looks like and when mediation is not appropriate.

This is one of the most misunderstood parts of the process. The section 60I certificate, the document most people associate with compulsory family mediation, applies to parenting orders. If an application is about property only, no section 60I certificate is required, even where the couple has children.

That does not mean property disputes can go straight to a courtroom. The Federal Circuit and Family Court of Australia’s pre-action procedures require parties to make a genuine attempt to resolve a financial or property dispute before filing, including by negotiation and dispute resolution, unless an exemption applies, for example where there is family violence or a risk of it, urgency, or where the applicant would be unduly prejudiced. Mediation is one of the main ways separating couples meet that requirement, and it is usually faster and far less expensive than litigation.

While every service runs a little differently, property settlement mediation generally follows a consistent shape:

• Intake and screening. The mediator speaks with each person separately, explains the process, and assesses whether mediation is safe and appropriate, including screening for family violence and significant power imbalances.
• Financial disclosure. Both parties assemble and exchange the information that defines the property pool: valuations, superannuation statements, bank balances and liabilities.
• The mediation itself. In joint sessions, or separate rooms where that works better, the mediator structures the discussion, keeps it on track and helps the parties test options against their interests. Lawyers may attend and advise in legally assisted models.
• Recording the outcome. Agreements are documented, commonly as a heads of agreement, and then handed to the formalising step below.

A mediated property agreement is not binding on its own. It becomes enforceable through one of two legal instruments:

• Consent orders. The parties apply to the Federal Circuit and Family Court of Australia, which reviews the proposed property arrangement and, if satisfied it is just and equitable, makes sealed orders with the same force as any other court order.
• A binding financial agreement. A private contract under the Family Law Act that is not reviewed by a court. It is only binding if strict requirements are met, including that each party received independent legal advice before signing.

This is why property mediation and legal advice work together rather than in competition. The mediator’s role is to get the parties to a workable agreement; turning that agreement into something enforceable is a legal step.

Property mediation is conducted by trained mediators from a range of professional backgrounds. That includes mediators accredited under the Australian Mediator and Dispute Resolution Accreditation Standards (AMDRAS), family dispute resolution practitioners whose matters span both parenting and property, and lawyers who practise as mediators or support legally assisted mediation.

Whoever conducts it, the skill set is distinctive. Property matters demand structured process management, comfort with financial detail, an understanding of the legal framework the agreement will be tested against, and the same screening and impartiality disciplines that apply to all family mediation.

For professionals, property settlement mediation is a specialisation that builds on general mediation training. A common pathway starts with foundational mediation units, such as the nationally recognised units in the Mediation Skill Set, moves through accreditation under AMDRAS for those practising as mediators, and adds family law context through family dispute resolution training for those working with separating families. Family Conflict Institute delivers training; it does not grant AMDRAS accreditation, which is a separate step with its own requirements.

Family Conflict Institute is developing Property Settlement Mediation Training, a specialist program for mediators and FDR practitioners expanding into property and financial settlements. The full course outline is being finalised, so if this is your direction, register your interest and our team will send the details as they are confirmed.