Family Law Changes: Property Settlements

Recent Family Law Act changes property settlements, predominantly focused on financial matters, are now operational. The amendments aim to make the process of dividing property fairer and more transparent, especially for those who have experienced family violence.

If you’re in the process of separating or working out how to divide property after a breakup, these laws may affect you. The following information is general only, and we recommend consulting an experienced family lawyer for advice tailored to your circumstances.

Additional Considerations in Property Proceedings

1. Family Violence

In addition to introducing a more structured approach to property division, the changes ensure that family violence is now specifically recognised as a factor to be considered by the court when making property orders.

According to the Family Law Act, family violence is “violent, threatening or other behaviour by a person that coerces or controls a member of the person’s family… or causes the family member to be fearful”. Economic abuse or financial abuse is explicitly recognised as a form of family violence. This might include:

• controlling a party’s money or assets
• sabotaging a party’s employment or income opportunities
• forcing a party to take on financial or legal liabilities
• unreasonably withholding financial support

When making property orders, the court will consider the economic effect of any family violence (if relevant) on a party’s ability to make financial and non-financial contributions to the welfare of the family. Additionally, the court will consider the economic effect of family violence on a party’s current and future circumstances.

The economic effect of family violence also forms part of the considerations when determining whether spousal maintenance should be ordered.

2. Wastage and Liabilities

The laws also introduce more clarity around how the courts should deal with the wastage of assets and liabilities. This aims to ensure that a party’s reckless or deliberate financial behaviour is taken into account when the property pool is divided.

When assessing current and future circumstances, the court will now specifically consider:

• The effect of any material wastage of property or financial resources that was caused intentionally or recklessly by a party, for example, excessive gambling, extravagant spending, or deliberately giving away assets.
• The nature of any liabilities incurred by a party, and the circumstances surrounding them. This may be relevant, for example, in situations where one partner has accumulated debt in the other’s name.

3. Housing Needs

When assessing current and future circumstances, the court will give additional consideration to the need for either party to provide appropriate housing for the care of children.

Pets Are No Longer Just “Property”

Previously, a family pet was treated simply as an item of property, like a car or a television. The amendments introduce a new legal category for “companion animals” and give the court the power to make specific orders about them.

While a court cannot order joint care or a shared arrangement for a pet, it can now take into account things like:

• Any history of abuse or threats towards the animal.
• The emotional bond between the pet and each party or any children.
• The ability of each person to care for the pet in the future.

This change recognises the significant emotional role that pets play in many families and ensures that their welfare is a specific consideration in a separation.

Stronger Rules Around Financial Disclosure

The duty for separating couples to provide full and frank financial disclosure has always existed, but the changes advance this obligation. It’s now explicitly set out in the Family Law Act, rather than just in the court rules, with implications for parties who do not comply.

The court has more power to take non-compliance seriously and can impose stronger penalties for failing to disclose financial information. This is designed to ensure that both parties have a complete and accurate picture of the financial circumstances before a property settlement is finalised.

What the Changes Mean for You

If a party has been subjected to family violence, the court can now directly take its financial impact into account when making a property settlement order. These changes aim for a more transparent, fairer family law system. They are designed to address the realities of modern relationships and the complexities that can arise during a separation.

It’s important to remember that these changes apply to all new and existing financial and property matters that are before the court from 10 June 2025, unless a final hearing has already started. If you’re currently involved in a property settlement, these changes may impact your case.

Key Takeaways

• Family violence is now a specific factor: The court must now consider the economic impact of family violence when dividing assets.
• Financial behaviour matters: Reckless wastage of assets and the circumstances around liabilities are now explicit considerations.
• Pets have their own section: Companion animals are no longer just treated as property; their welfare and emotional importance will be considered.
• Disclosure is more important than ever: The duty of financial disclosure is now enshrined in the Family Law Act, with penalties for non-compliance.

If you or someone you know wants more information or needs help or advice, please call +61 2 9283 3344 or email [email protected].