How the latest Family Law amendments reshape property settlements

Further changes to the Family Law Act focus on property settlements, with particular emphasis on family violence considerations.

The family law system has faced a number of landmark changes over recent years, with significant amendments to the parenting regime enacted in 2024, and more substantive changes to property matters yet to come in 2025. The most recent changes, which come into effect in June, represent the first major reform of financial provisions since 2009. Once again these amendments aim to simplify the family law process for all litigants and appropriately recognise the impact of family violence.

New, significant changes impacting property settlements

The Family Law Amendment Act 2024 was passed by the Australian Parliament on 10 December 2024 (The Amendment Act). This means from 10 June 2025, there will be major changes to how the Court will assess property settlement cases under the Family Law Act 1975 (Family Law Act).

In summary the key changes are:

1. That family violence is a relevant consideration in determining the division of property following separation.
2. Economic abuse and financial abuse (including dowry abuse) are expressly captured within the definition of family violence.
3. There is now provision regarding the ownership of family pets following separation.
4. The legislation elevates the requirements of financial disclosure and incorporates the obligations set out in the rules into the Family Law Act, to ensure that parties better understand the requirements regarding compliance.
5. To ensure that the care and housing needs of children are considered.
6. The amendments allow the court to have discretion around apply a less adversarial approach, allowing the court to manage evidence particularly where the case includes allegations of family violence.

Consideration of the impact of family violence

The changes in the Amendment Act around family violence are significant. In a media release on 29 November 2024, the Hon Mark Dreyfus KC MP referenced that family violence was present in approximately 80% of cases before the Federal Circuit and Family Court of Australia, and reinforced that the intention of the amendments is to make “the family law system simpler, safer and fairer for all Australian families”.

The Amendment Act requires the court to consider the following factors when determining property settlements, specifically with regard to contributions made by a partner during the relationship:

• the effect of any family violence, to which one party has subjected the other party, on the ability of a party to make contributions; and
• the effect of any economic or financial abuse to which a party has been subjected by the other party; and
• the effect of any material wastage, intentionally or recklessly of property or financial resources of either of the parties or both of them; and
• any liabilities incurred by either of the parties including the nature of the liabilities and the circumstances relating to them;
• the extent to which either party has the care of a child of the marriage who has not attained the age of 18 years, including the need of either party to provide appropriate housing for such a child.

The Amendment Act sets out examples of behaviour that might constitute family violence or economic or financial abuse, including:

• unreasonably denying the family member the financial autonomy that the family member would otherwise have had, such as by:
  • forcibly controlling the family member’s money or assets, including superannuation; or
  • sabotaging the family member’s employment or income or potential employment or income; or
  • forcing the family member to take on a financial or legal liability, or status; or
  • forcibly or without the family member’s knowledge, accumulating debt in the family member’s name;
• unreasonably withholding financial support needed to meet the reasonable living expenses of the family member, or the family member’s child (including at a time when the family member is entirely or predominantly dependent on the person for financial support);
• coercing a family member (including by use of threats, physical abuse or emotional or psychological abuse):
  • to give or seek money, assets or other items as dowry; or
  • to do or agree to things in connection with a practice of dowry;
• hiding or falsely denying things done or agreed to by the family member, including hiding or falsely denying the receipt of money, assets or other items, in connection with a practice of dowry.

Ownership of family pets

The amendments allow the court to make orders regarding family pets (referred to as companion animals) in a property settlement, including:

• an order to provide that one party will have ownership of the family pet; or
• that ownership of the pet be transferred to another party with their consent; or
• the sale of the family pet.

In considering orders regarding a family pet, the court will take into account:

• the circumstances in which the animal was acquired;
• who has ownership or possession of the animal;
• the extent to which each party cared for, and paid for the maintenance of, the animal;
• any family violence to which one party has subjected or exposed the other party;
• any history of actual or threatened cruelty or abuse by a party towards the animal;
• any attachment by a party, or a child of the marriage, to the animal;
• the demonstrated ability of each party to care for and maintain the animal in the future, without support or involvement from the other party; and
• any other fact or circumstance which, in the opinion of the court, should be considered.

These changes recognise that pets are frequently exposed to the effects of family violence and ensures that proper consideration will be given to their future in any property settlement proceedings, in a way that the court was unable to do previously.

What is the likely impact of the changes?

The changes come into effect on 10 June 2025, however they are not retrospective, and so it will take some months before we can measure their true impact.

Whilst the changes to the law appear to recognise the deficiencies of the legislation in circumstances of family violence and the experience of victim survivors in navigating the litigation pathway, the challenges posed in dealing with such a complex scenario will continue. Much will depend on the interpretation of the changes by the judiciary, the profession and the family report writers, noting that only the most high conflict cases proceed to a final hearing – it takes significant courage, resilience and financial resources to pursue litigation of this nature.