Recent changes to the Family Law Act, predominantly focused on financial property settlements, are now operational. The amendments aim to make property division fairer and more transparent, especially for those who have experienced family violence.
If you’re separating or figuring out how to divide property after a breakup, these laws may affect you. This information is general only and does not constitute legal advice. We recommend consulting an experienced family lawyer for advice tailored to your circumstances.
Additional Considerations in Property Proceedings
Family Violence
The changes introduce a more structured approach to property division and ensure that family violence is now a specific factor the court considers 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.” The law also recognises economic or financial abuse. Examples 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 now considers the economic effect of family violence on a party’s financial and non-financial contributions to the family. The court also considers how family violence affects a party’s current and future circumstances.
The economic effect of family violence is also considered when deciding whether spousal maintenance should be ordered.
Wastage and Liabilities
The laws provide clarity on how courts handle wastage of assets and liabilities. They ensure that reckless or deliberate financial behaviour is considered when dividing property.
When assessing current and future circumstances, the court now specifically considers:
- The effect of material wastage of property or financial resources caused intentionally or recklessly, such as excessive gambling, extravagant spending, or giving away assets.
- The nature and context of any liabilities incurred by a party, for example, when one partner accumulates debt in the other’s name.
Housing Needs
The court also considers the need for either party to provide suitable housing for the care of children.
Pets Are No Longer Just “Property”
Previously, a family pet was treated as property, like a car or television. The amendments create a legal category for “companion animals” and give the court the power to make specific orders about them.
While the court cannot order joint care of a pet, it can consider:
- Any history of abuse or threats towards the animal
- The emotional bond between the pet and each party or children
- Each person’s ability to care for the pet in the future
This change recognises the emotional importance of pets and ensures their welfare is considered during a separation.
Stronger Rules Around Financial Disclosure
The duty to provide full and frank financial disclosure has always existed. The changes now explicitly enshrine this duty in the Family Law Act. Courts can impose stronger penalties for non-compliance. This ensures both parties have a complete and accurate understanding of financial circumstances before a property settlement is finalised.
What the Changes Mean for You
If a party has experienced family violence, the court can now directly account for its financial impact when making property orders. These changes aim for a fairer, more transparent family law system. They reflect the realities of modern relationships and the complexities of separation.
These changes apply to all new and existing financial and property matters before the court from 10 June 2025, unless a final hearing has already started. If you are involved in a property settlement, these changes may affect your case.
Key Takeaways
- Family violence is now a specific factor: The court must consider its economic impact when dividing assets.
- Financial behaviour matters: Reckless wastage of assets and circumstances around liabilities are explicit considerations.
- Pets have their own section: Companion animals are no longer just property; their welfare and emotional role are considered.
- Disclosure is more important than ever: The duty of financial disclosure is now in the Family Law Act, with penalties for non-compliance.
If you or someone you know needs more information or legal help, please call 03 9670 7440 or email [email protected].