Changes to Family Law Property Settlements Impacting Family Violence and Financial Disclosure
13.06.25Published 13 June 2025 | Last updated 4 September 2026 | Written by Family Law Partner Marius Eden and Law Clerk Tehgan Gee
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Since 10 June 2025, the Family Law Amendment Act 2024 (Cth) requires Australian family law courts to expressly consider the economic effect of family violence when dividing property after separation. In practice, this means:
- Courts must weigh evidence of economic and financial abuse (for example, controlling a partner’s spending, sabotaging their employment, or coercing them into debt) when assessing each party’s contributions and future needs.
- Courts must explicitly consider wastage of assets, the origin of debts, and children’s housing needs as part of every property settlement.
- Courts now have a statutory framework for deciding what happens to family pets, including ownership and sale, though not shared custody.
- The duty of financial disclosure is now set out in section 71B of the Family Law Act 1975 itself, rather than only in court rules.
- These changes apply to property matters decided on or after 10 June 2025, regardless of when the couple separated, and they do not allow family law courts to impose criminal penalties or award compensation for family violence.
If you’re affected by family violence and are working through a property settlement, Ramsden Lawyers’ Gold Coast family law team can advise on how these changes apply to your situation.
In this article, Partner Marius Eden and Law Clerk Tehgan Gee delve into the recent reforms to the Family Law Act 1975 (Cth), introduced through the Family Law Amendment Act 2024. While certain provisions were enacted immediately following the bill’s passage in December 2024, the initial major set of amendments officially commenced on 10 June 2025. These updates mark a significant shift in the legal approach to property settlements, placing a particular emphasis on acknowledging and addressing the financial impacts of family violence.
What Counts as Family Violence and Economic Abuse Under Australian Family Law?
Family violence is defined quite broadly in the Act. It includes violent, threatening, or other types of behaviour that control, pressure, or scare a family member.
The 2025 changes expanded the examples of economic and financial abuse to cover more types of controlling behaviour, including stopping a partner from working, controlling how much they can spend on basic needs, or tricking or pressuring them into taking on debt.
The legislation makes clear that economic and financial abuse is a form of family violence in its own right, not merely a side effect of other abusive conduct.
How Does Family Violence Affect Property Settlements?
Effective from 10 June 2025, the Family Court will consider the economic impact of family violence, where relevant, when making decisions about property and financial matters after separation. Under these changes, the presence of family violence may influence how the Court assesses each party’s financial and non-financial contributions during the relationship. For example, if one party was prevented from working, that restriction may now be taken into account. It may also be relevant when considering a party’s current or future needs, such as ongoing counselling or rehabilitation expenses.
This update reflects the Court’s acknowledgment that family violence can significantly affect a person’s ability to contribute during the relationship and influence their future financial circumstances. The changes aim to provide fairer outcomes for those whose situation has been affected by family violence during or after separation.
Importantly, a finding of family violence does not automatically translate into a larger property settlement; the Court looks at the effect of the violence on contributions and needs, not simply whether it occurred. The legislation also does not allow family law courts to impose criminal sentences for acts of family violence, award compensation for harm caused, or make or vary protection orders related to family violence.
What New Obligations Do Courts Have Around Wastage, Debt, and Housing?
Historically, the Court has had discretion to take into account issues such as wastage, liabilities, and housing needs when determining property settlements. Recent legislative reforms now mandate that these elements be explicitly considered as part of the process. In terms of wastage, the Court must now assess whether a party has deliberately or recklessly diminished or disposed of assets or financial resources when evaluating their contributions. With respect to liabilities, the Court is required to examine the origin and nature of the debts, as well as their implications for the parties’ future financial situations. Additionally, greater emphasis will be placed on the necessity of securing adequate housing for any children involved, which could result in the primary caregiver retaining the family home or receiving sufficient resources to obtain suitable accommodation.
Case law update: In Shinohara & Shinohara [2025] FedCFamC1A 126 (23 July 2025), the Full Court confirmed that notional “add-backs” can no longer be included in the property pool under section 79(3)(a)(i); only property that still exists at trial can be divided. Wastage and dissipated assets are instead weighed as a discretionary factor under section 79(4) or (5), affecting contribution and needs assessments rather than being mathematically added back to the asset pool. In practical terms, this means keeping clear records of any disputed spending is now even more important, since arguments about wasted assets are argued through contributions and future needs rather than balance-sheet adjustments.
Can the Family Court Decide Who Keeps the Family Pet?
Couples who are separating can decide on arrangements for their companion animals (family pets) without needing to go to Court. The Family Law Courts have limited authority when it comes to making decisions about pets. For instance, they cannot issue orders for shared ownership or joint custody of animals. However, since 10 June 2025, the Courts have been required to consider a specific set of factors before making any decisions about family pets. These factors include any history of animal abuse or threatening conduct, and the emotional bonds between the pet and either party or any children involved in the relationship.
Has the Duty of Financial Disclosure Changed?
Separating couples are required to fully disclose all financial details to each other and to the Court. This obligation, known as the duty of disclosure, is continuous and must be adhered to throughout the process. Failing to meet this duty can result in serious consequences imposed by the Family Law Courts, such as cost penalties or delays in the proceedings.
The obligation itself is unchanged, but since 10 June 2025, the legal foundation for this duty sits in section 71B of the Family Law Act 1975, replacing its previous placement in the Federal Circuit and Family Court of Australia (Family Law) Rules. This change further underscores the importance of providing all relevant financial documents and information from the outset of a matter.
How Ramsden Lawyers Can Assist You
At Ramsden Lawyers, our experienced Gold Coast family lawyers have a deep understanding of the Family Law Act 1975 and the emotional and legal complexities that come with separation and divorce. In light of recent legislative reforms and developing case law, our Family Law team has adapted its approach to continue delivering clear, strategic guidance in today’s evolving family law landscape.
If you or someone close to you is affected by family violence, our Gold Coast family lawyers are equipped to provide legal support specific to your needs. They will assess how the latest changes in family law apply to your matter and deliver practical advice on your legal options, helping you take the most effective course of action with confidence and clarity.
If you would like to speak with a Gold Coast family lawyer please do not hesitate to contact us.
FREQUENTLY ASKED QUESTIONS
When did the Family Law Amendment Act 2024 changes take effect?
The Bill received assent on 10 December 2024, with some provisions commencing immediately. The main property settlement and family violence reforms discussed in this article commenced on 10 June 2025.
Does family violence automatically mean I'll get a bigger share of a property settlement?
No. The Court considers the effect that family violence had on a party’s ability to contribute during the relationship, or on their current and future needs. A finding of family violence does not, by itself, guarantee a larger settlement; it’s one factor weighed alongside the parties’ broader circumstances.
What counts as economic or financial abuse?
Economic and financial abuse can include preventing a partner from working, controlling their spending on essentials, pressuring or tricking them into debt, or otherwise controlling their access to money and financial resources. Since 10 June 2025, this is expressly recognised as a form of family violence under the Family Law Act 1975.
What happens if my ex-partner wasted, hid, or spent shared assets before settlement?
The Court must now expressly consider wastage of assets and the nature of any debts. Following Shinohara & Shinohara [2025] FedCFamC1A 126, wasted or dissipated assets are no longer notionally “added back” to the property pool; instead, they’re weighed as part of the contribution and future needs assessment. Keeping records of disputed spending remains important.
Can the Family Court order that we share custody of our pet?
No. The Family Court cannot make shared ownership or joint custody orders for pets. It can, however, decide which party keeps a pet (or order its sale), taking into account factors such as any history of animal abuse or threats, and the emotional bond between the pet and each party or any children.
Has the duty of financial disclosure in family law changed?
The duty itself hasn’t changed, but its legal basis has moved. Since 10 June 2025, it’s set out in section 71B of the Family Law Act 1975, rather than only in the court rules. Full and continuous disclosure of financial circumstances is still required, and failing to comply can still lead to cost penalties or delays.
Do these changes apply if we separated before 10 June 2025?
Yes. The reforms apply to property and financial proceedings determined on or after 10 June 2025, regardless of when the parties separated.
Can the Family Court award compensation or impose penalties for family violence?
No. The family law courts cannot impose criminal sentences for family violence, award compensation for harm caused, or make or vary family violence protection orders. Those matters are dealt with by criminal courts and state or territory protection order regimes.
