Changes to Family Law Property Settlements Impacting Family Violence and Financial Disclosure

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.  

EXTENDED DEFINITION OF FAMILY VIOLENCE IN AUSTRALIAN FAMILY LAW

Family violence is defined quite broadly in the Act. It includes violent, threatening, or other types of behavior that control, pressure, or scare a family member.

The upcoming changes to the law will expand the examples of economic and financial abuse to cover more types of controlling behavior. For example, stopping a partner from working, controlling how much they can spend on basic needs, or tricking or pressuring them into taking on debt.

The new legislation makes it clear that economic and financial abuse can be a form of family violence.

How Family Violence Affects 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, the new legislation does not allow the 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

NEW OBLIGATIONS AROUND WASTAGE, DEBT, AND HOUSING IN PROPERTY PROCEEDINGS

Historically, the Court has had discretion to take into account issues such as wastage, liabilities, and housing needs when determining property settlements. However, 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. This could result in the primary caregiver retaining the family home or receiving sufficient resources to obtain suitable accommodation. These legislative updates highlight a more structured approach by the Courts in prioritizing specific, impactful considerations during property settlement proceedings.

PETS IN FAMILY LAW PROPERTY SETTLEMENTS

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, starting from 10 June 2025, the Courts will be required to consider a specific set of factors before making any decisions about family pets. These factors include any history of animal abuse, threatening conduct, and the emotional bonds between the pet and either party or any children involved in the relationship.

FINANCIAL DISCLOSURE IN SEPARATION

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. Although the obligation itself is unchanged, from 10 June 2025, the legal foundation for this duty will shift to the Family Law Act 1975, replacing its current 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.

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, 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.