Recent changes to the Family Law Act, predominantly focused on financial property settlements, 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 are in the process of separating or working out how to divide property after a breakup, these laws may affect you. The following information is a general overview only and does not constitute legal advice. We recommend consulting our experienced family lawyers for advice tailored to your circumstances.
Additional Considerations in Property Proceedings
Family Violence
In addition to introducing a more structured approach to property division, the recent changes ensure that family violence is specifically recognised as a factor to be considered by the court when making property orders.
The Family Law Act defines family violence 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”. 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; or
- unreasonably withholding financial support.
When making property orders, the court will consider the economic effect of any family violence on a party’s ability to make financial contributions, non-financial contributions or 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 is also considered by the court when determining whether spousal maintenance should be ordered.
Wastage and Liabilities
The recent changes clarify the way in which the courts should deal with the wastage of assets and liabilities. This is to ensure that a party’s reckless or deliberate financial behaviour is considered when dividing the property pool.
When assessing the current and future circumstances of the parties, 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; and
- 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.
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 another item of property, like a car or television. The recent changes 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; and
- the ability of each person to care for the pet in the future.
This 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. However, this obligation is now explicitly set out in the Family Law Act, rather than just in the court rules as was the case previously.
The court now has the power to take non-compliance more seriously and can impose stronger penalties for the failure 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 you have been subjected to family violence, the court can now directly take its financial impact into account when making a property settlement order. The changes to the Family Law Act aim to achieve a more transparent, fairer family law system. They are designed to address the realities of modern relationships, the impact of family violence and the complexities that can arise during a separation.
It is 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 are currently involved in a property settlement, these changes may impact your case.
Key Takeaways
- Family violence is now a specific factor: The court must consider the economic impact of family violence when dividing assets.
- Financial behaviour matters: Reckless wastage of assets and the circumstances around liabilities are 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 us 08 8443 4888 or send us an email at [email protected].