New changes to the Family Law Act 1975 will come into effect on 10 June 2025, with an aim to bring greater fairness and clarity to property settlements after separation.
These changes place a stronger focus on the impact of family violence and financial abuse, ensuring both the previous and ongoing impact of such experiences are properly considered when dividing property and assets.
Let’s take a closer look.
Do these changes apply to separations settled outside of the court?
Yes, these changes apply to all separating couples, whether they are negotiating outside of court (through mediation or other methods of dispute resolution) or if the matter is handled within the court.
How will family violence affect property settlements under the new laws?
According to the law, family violence is defined as ‘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’.
From 10 June 2025, courts must consider the economic effects of family violence when deciding property settlements, which is something that wasn’t explicitly required under the previous legislation. This includes recognising the impact the violence and abuse may have had on one party’s ability to work, earn money, build savings or contribute to the relationship in other ways.
For example, if someone was prevented from working or had to leave their job because of abuse, this will be recognised as affecting their financial position and may influence the outcome of the property settlement.
The courts will also consider how the violence may affect a person’s future, such as the need for ongoing counselling, rehabilitation or other costs associated with their recovery.
How will economic or financial abuse affect property settlements after separation?
Economic or financial abuse is now formally included in the legal definition of family violence. It involves controlling someone’s access to money or resources in a way that limits their independence, such as by:
- Unreasonably limiting or denying a family member access to financial autonomy, such as by:
- Forcefully controlling their assets, money or superannuation.
- Deliberately making it hard for them to work or earn an income, whether now or in the future.
- Forcing them into financial or legal liability against their will or without their knowledge.
- Withholding financial support needed to meet basic living costs of the family member or their child, such as money for groceries, rent or other essential items.
- Using pressure or threats in relation to dowry, such as forcing someone to give or ask for money or gifts as dowry, or using threats, emotional abuse or physical violence to make someone agree to dowry-related demands.
- Lying about or hiding dowry arrangements, such as denying that money or gifts were exchanged as part of a dowry, or hiding those details from the other person involved.
These behaviours can have a lasting impact on someone’s ability to be financially independent after the relationship ends. The new rules make it clear that this kind of abuse should be taken seriously when dividing property.
Who gets the pets after separation according to these changes?
New rules under the Family Law Act 1975 set out exactly what the court must consider when making decisions about family pets, which takes into account:
- Any history of animal abuse or threatening behaviour involving the pet, especially where it’s part of family violence.
- The relationship or bond each person, particularly children, have with the pet.
It’s important to know that the court can only make certain types of decisions about pets. For example, it can’t make orders for shared or joint ownership or create formal arrangements for taking turns with the pet like you might with parenting. The court will decide who the pet should live with based on what’s fair and appropriate in the circumstances.
Are there consequences if one party does not disclose all their property and assets during settlement?
Under the new rules, parties will have stronger legal duties to provide full and honest disclosure of their financial position in an effort to reduce disputes and delays in settlements. This information includes sharing details of income, savings, debts, superannuation and other assets.
The court can implement consequences if someone tries to hide assets or fails to disclose financial details, such as:
- Consider a person’s failure to follow court orders when making decisions about property settlement.
- Order the person who didn’t comply to pay legal costs.
- Penalise someone for contempt of court, which can include a fine or imprisonment.
- Delay or stop part of the case, depending on the situation.
Has the property settlement process changed because of these amendments?
These amendments change the factors considered in each settlement matter, rather than the process itself.
Whether you’re reaching an agreement on your own or asking the court to decide, the same steps should be followed:
- Identify all assets and debts
This means working out exactly what you both own and owe, including property, bank accounts, superannuation, loans and other liabilities. - Look at what each person contributed
Contributions can be financial (such as income or savings) or non-financial (like unpaid work in the home or caring for children). - Consider your current and future needs
The court will take into account things like your age, health, earning capacity and who is caring for the children. These factors can affect what each person might need moving forward. - Make sure the outcome is just and equitable
In simple terms, the final agreement or court order must be fair when looking at the overall picture. What’s fair will depend on the individual circumstances of each case, now with the consideration of more factors, such as the impact of family violence and economic and financial abuse.
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Do these changes affect existing property settlement cases?
These changes will apply to all new and existing property proceedings, including those filed before 10 June 2025, unless a final hearing has already started before that date. Existing financial or property orders will remain unchanged.
As always, we recommend speaking with one of our family lawyers before making any decisions. Getting the right advice early can help you feel more confident with the process and set you up for emotional and financial freedom in your next chapter.
If you have questions about the changes or would like tailored advice, you can book a free, non-obligation initial consultation through our website or by calling our friendly reception team on (03) 5996 1600. We’re here to help.
If you or someone you know needs help, please contact 1800RESPECT. This is a confidential online and telephone counselling, information and referral service that provides support to people who have experienced sexual assault, family and/or domestic violence. To access 1800RESPECT, you can phone 1800 737 732, 24 hours a day, 7 days a week, chat online via www.1800RESPECT.org.au or text 0458 737 732.
