New Family Law Property Settlement Changes Impacting Family Violence and Financial Disclosure

In this article, Partner Marius Eden and Law Clerk Tehgan Gee provide insights into the recent amendments to the Family Law Act 1975 (Cth) (‘the Act’) through the Family Law Amendment Act 2024. Whilst some changes took effect immediately when the bill was passed in December 2024, the first substantive group of amendments took effect from 10 June 2025. These legislative changes will reshape the way property settlement is navigated, explicitly addressing the economic ramifications of family violence.  

EXTENDED DEFINITION OF FAMILY VIOLENCE

Family violence has a fairly wide definition in the Act, and means violent, threatening, or other behavior by a person that coerces or controls a member of the person’s family or causes the family member to be fearful. The upcoming changes will also expand the examples of economic and financial abuse to include a broader range of coercive and controlling behaviors. For example, interfering with a partner’s work, dictating how much a partner can spend on necessities, and using deception or pressure to force a partner to take on debts. The new legislation provides clarity that economic and financial abuse may contribute to family violence.

How Family Violence Affects Property Settlements Under New Family Law Changes

From 10 June 2025, the economic effect of family violence will be considered, where relevant, when the Court makes decisions about property and finance after separation. Through these changes, the impact of family violence may be relevant when assessing a party’s financial and non-financial contributions during the relationship, for example, if they were not allowed to work. It may also become relevant when assessing a party’s current or future circumstances. As an example, if they have ongoing counselling or rehabilitation costs. These changes reflect the Court’s approach that the existence of family violence can have a discernible impact on a party’s contribution throughout a relationship and their future needs, and accordingly, an attempt to assist where family violence has had an impact on a person going through separation.

To provide clarity, the new legislation will not permit the family law courts to sentence someone for engaging in family violence, order compensation for harm caused by family violence, or make or alter orders made to protect someone from family violence.

RELEVANCE OF WASTAGE, LIABILITIES, AND HOUSEHOLDING NEEDS

Wastage, liability, and housing needs have previously been open to the Court to consider when deciding a property settlement. However, the legislative changes will see these become specific factors considered in property settlement matters. Regarding wastage, the Court will need to consider whether a party has intentionally or recklessly lost or given away assets or financial resources when considering their contributions. The Court will also be able to consider the nature of liabilities, the circumstances that brought about such liabilities, and their impact on the financial future of the parties. The Court will be required to give additional consideration to the need for parties to provide appropriate housing for their children. This allows the Courts to favor ensuring the children’s housing needs are met by granting the primary caregiver the family home or ensuring sufficient funds for suitable accommodation. These changes reflect the Courts approach in prioritizing specific factors in property settlements.

COMPANION ANIMALS IN FAMILY LAW PROPERTY SETTLEMENTS

Separating couples can make arrangements for what happens to companion animals (family pets), without attending Court. The Family Law Courts can only make certain types of orders regarding family pets. For example, they cannot make orders for joint ownership or shared possession arrangements. From 10 June 2025, when considering orders regarding family pets, the Family Law Courts must consider a specific list of matters, including any animal abuse, threatening behaviors, and the attachment of each party, or children of the relationship, to the family pets.

DUTY OF FINANCIAL DISCLOSURE

Separating couples have a duty to give all relevant financial information to each other and the Courts. The duty of disclosure is ongoing, and failure to comply can lead to consequences imposed by the Family Law Courts, including cost orders and deferral of proceedings. While the nature of the duty remains, from 10 June 2025, the duty of disclosure will be found in the Family Law Act 1975 rather than the Federal Circuit and Family Court of Australia (Family Law) Rules. It brings further emphasis to the disclosure of all financial documents and information relevant.

HOW RAMSDEN FAMILY LAW CAN ASSIST YOU

At Ramsden Family Law, our Gold Coast family lawyers are familiar with the complexities of the Family Law Act 1975 and the challenging process of divorce and separation. In light of the 2025 family law reforms, our team has revised our strategy to guide our clients through the ever-changing family law environment.

If you or someone you know is experiencing family violence, including coercive control or financial abuse, we can help you understand how these changes impact your property settlement, financial disclosure obligations, and arrangements involving liabilities, housing needs, or family pets. Whether your matter involves contested assets, hidden debts, or special considerations due to family violence, our family lawyers are here to guide you every step of the way and provide you with strategic advice that is specific to your needs.

If you would like to speak with one of our Gold Coast Family Lawyers today, please do not hesitate to contact us.