Big change to family law puts a price on violence: what you need to know!

From 10 June 2025, significant changes to property settlements under the Family Law Act 1975 (Cth) will come into effect. These reforms aim to create a fairer, more transparent, and contemporary approach to dividing property and finances after separation.

The key changes are effective from 10 June 2025, meaning they will only apply to cases which are filed at any time after 10 July 2025. 

1. Family violence as a consideration in property settlements

The Family Law Act will now formalise that the Court must consider the economic impact of family violence when determining property and financial settlements. This includes recognizing forms of economic or financial abuse, such as controlling access to money or coercive demands as part of family violence. The courts will assess how such abuse may have affected a party’s ability to contribute financially or non-financially during the relationship.

2. Clearer framework for property division

The legislation outlines a structured process for property settlements, applicable both in court and during out-of-court negotiations. This process involves:

• Identifying all assets and liabilities of both parties
• Assessing each party’s financial and non-financial contributions
• Considering each party’s current and future needs, including age, health, and childcare responsibilities
• Ensuring that any orders made are just and equitable in all circumstances

3. Pet ownership in property settlements

The courts now have explicit authority to make orders regarding the ownership of family pets after separation. This change acknowledges the emotional significance of pets and aims to prevent their use as tools of coercion in abusive relationships. 

4. Elevated financial disclosure requirements

The duty of financial disclosure has been elevated from the Family Law Rules into the Family Law Act itself. This change emphasizes the importance of transparency and aims to improve compliance, ensuring that both parties have a clear understanding of their financial obligations during property settlements .

5. Less adversarial court processes

Courts are now empowered to adopt less adversarial approaches in property and financial matters. This includes greater discretion to manage proceedings and evidence, particularly in cases involving family violence, to enhance the safety and efficiency of the legal process

6. Consideration of children’s needs

When determining property settlements, courts must now consider the care and housing needs of any children involved. This ensures that the welfare of children remains a central concern in the division of property and financial resources .

Applicability of the changes

These reforms apply to all separating couples (whether married or in de facto relationships) who are negotiating property settlements. The reforms will applu regardless of whether the matter is resolved through court proceedings or out-of-court agreements (such as Mediation).

For more detailed information, you can refer to the official fact sheet provided by the Federal Circuit and Family Court of Australia.

Are you experiencing issues with your property settlement or need family law advice? At Kells we have a team of successful property settlement lawyers who all have extensive experience in the division of property and assets post-separation/divorce.

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