Property Settlement Changes 2025: Key Updates to Family Law

Starting from 10 June 2025, substantial revisions to the Family Law Act will take effect, significantly impacting financial outcomes in cases involving family violence.

Key updates to family law include:

Inclusion of Family Violence in Property and Maintenance Decisions

Family violence, including economic and financial abuse, will play a pivotal role in decisions around property settlements and spousal maintenance. Courts must specifically evaluate:

• Impact on Contributions: How family violence has affected a partner's ability to make financial or non-financial contributions during the relationship.
• Ongoing Consequences: The lasting impact of family violence on a partner's present and future financial stability.

Previously, family violence had limited influence on a property settlement, except in rare cases. These changes mark a significant shift in ensuring fairer outcomes for victims of domestic violence in family law matters.

Consideration of Wastage, Liabilities, and Housing Needs

Courts must now explicitly account for factors like wastage, liabilities, and housing requirements in property settlements:

• Wastage of Assets: Courts will assess the intentional or reckless depletion or disposal of assets by either partner during or after the relationship.
• Liabilities: The nature, circumstances, and potential future financial impacts of liabilities accrued by either party will be considered.
• Housing Needs: Increased attention will be given to each partner's requirements to secure appropriate housing, especially when children are involved.

Expanded Definition of Economic and Financial Abuse

The Act broadens the definition of economic and financial abuse to cover various coercive behaviours, including:

• Controlling or limiting access to financial resources.
• Manipulation or deception involving debts, government payments, or legal obligations.
• Obstructing employment or education opportunities.
• Using financial deprivation or pressure as a means of control or punishment.
• Issues around dowries, including coercion, concealment, or forced provision of assets.

Structured Approach to Property Settlement Decisions

The legislation specifies a structured, step-by-step approach courts must adopt in property settlement decisions:

• Evaluate each partner's legal and equitable rights, contributions, and liabilities.
• Allocate asset and liability shares based on contributions.
• Adjust shares by considering both parties' present and anticipated future circumstances.
• Implement the final division by assigning specific assets and liabilities.

Recognition of Pets in Property Settlements

Courts may now issue specific orders regarding family pets (companion animals), including decisions about ownership, transfer, or sale. Factors considered include:

• Acquisition circumstances.
• Care and financial responsibility history.
• Exposure to family violence or cruelty.
• Emotional attachments by family members, especially children.
• Each party's future capability to independently care for the pet.

Adoption of Less Adversarial Procedures

The Act expands the Court's ability to apply less adversarial procedures from parenting disputes to property and financial cases, enhancing flexibility and accessibility, particularly in cases involving family violence.

Emphasis on Complete Financial Disclosure

The Family Law Act will formally incorporate financial disclosure obligations, emphasising their importance in ensuring fair outcomes for property settlements and family law disputes. Here's what's changing:

• Enhanced Compliance Standards: Parties involved in family law matters will face stricter obligations to provide full and frank financial disclosure.
• Penalties for Non-Disclosure: Clear consequences for failing to disclose financial information will be introduced, fostering transparency in property and spousal maintenance cases.

Penalties for Non-Disclosure: Clear consequences for failing to disclose financial information will be introduced, fostering transparency in property and spousal maintenance cases. If you're wondering how the upcoming 2025 family law changes might influence your case, our team of family law solicitors is here to provide expert advice tailored to your situation. Contact us at (02) 4647 2968 or submit an online enquiry to schedule a free consultation.