Upcoming Changes to the Family Law Act 1975
Overview
On 10 June 2025, significant changes to Australia’s Family Law Act 1975 will come into effect, impacting how property settlements are determined following the breakdown of either a marriage or de facto couple. These reforms introduce a requirement for the Court to consider the economic impact of family violence, clarify the treatment of pets in property disputes and what Court orders can be made in respect of pets, and reinforces the duty of financial disclosure by including it in the Family Law Act 1975.
Arrangements for Finances and Property After Separation
Most separating couples determine their property and financial arrangements independently, by negotiation with the assistance of solicitors or through dispute resolution such as mediation. If an agreement cannot be reached, it may be necessary to apply to the Family and Federal Circuit Court of Australia to determine the issues. The Court has broad powers to make orders regarding property, debts, and financial assets when it is just and equitable to do so.
From 10 June 2025, changes to the Family Law Act 1975 will affect:
- How the family law courts determine property settlements.
- The factors considered by the courts, including the economic effects of family violence.
- Clarity about companion animals
These changes apply to all separating couples, whether they have already commenced proceedings or if they are in the process of negotiating their property settlement.
Process for Determining a Property Settlement
When deciding a property settlement, the following steps are taken, both by the Court, and during any negotiations:
- Identify all property and liabilities (debts) of both parties, whether held individually or jointly.
- Assess each party’s financial and non-financial contributions (whether direct or indirect) to the property pool and the welfare of the family.
- Consider each party’s current and future circumstances and needs, including age, health, and childcare responsibilities.
- Make orders that are just and equitable in all circumstances.
As of 10 June 2025, the economic consequence of family violence must be considered by the Court, where relevant, when making decisions. In doing so, they will consider circumstances where a person may have been economically or financially abused and how this may constitute family violence. The Explanatory Memorandum of the Act states these amendments are to ensure that courts and parties negotiating outside of court consider the economic impact of family violence when resolving financial and property matters after separation.
Section 4AB of the Family Law Act 1975 will be amended to expand the definition of family violence to specifically include examples of behaviour that might constitute economic or financial abuse, including:
(a) unreasonably denying the family member the financial autonomy that the family member would otherwise have had, such as by:
(i) forcibly controlling the family member’s money or assets, including superannuation; or
(ii) sabotaging the family member’s employment or income or potential employment or income; or
(iii) forcing the family member to take on a financial or legal liability, or status; or
(iv) forcibly or without the family member’s knowledge, accumulating debt in the family member’s name;
(b) unreasonably withholding financial support needed to meet the reasonable living expenses of the family member, or the family member’s child (including at a time when the family member is entirely or predominantly dependent on the person for financial support);
(c) coercing a family member (including by use of threats, physical abuse or emotional or psychological abuse):
(i) to give or seek money, assets or other items as dowry; or
(ii) to do or agree to things in connection with a practice of dowry;
(d) hiding or falsely denying things done or agreed to by the family member, including hiding or falsely denying the receipt of money, assets or other items, in connection with a practice of dowry.[1]
The Act requires courts to assess how family violence has affected a party’s ability to contribute to the relationship, whether financially or in a homemaker or parenting role.
Significantly, consideration is to be specifically given to the effect of family violence when considering the current and future circumstances of a party.
While a finding that family violence occurred does not automatically entitle a party to a greater share of property, if there has been an impact on a party, this will be considered and taken into account.
These amendments codify existing case law, particularly the case of Kennon & Kennon[2] which established that where family violence has had a discernible impact on contributions to a relationship, it may be considered in property settlements. The reforms provide greater clarity and reduce barriers to understanding for self-represented litigants.
Pets and Property Settlements
Another change with the reforms is clarifying what orders the Court can make in regard to companion animals (pets) and what considerations are to be taken into account.
If separating couples cannot agree on what happens to their pets, they can apply to the Court for orders including:
(a) that only one party to the marriage, or only one person who has been joined as a party to the proceedings, is to have ownership of the companion animal; or
(ab) that the companion animal be transferred to another person who has consented to the transfer; or
(b) that the companion animal be sold.[3]
It is made clear that the Court cannot make an order for the joint possession or a shared ‘custody’ arrangement of a pet.
In determining the appropriate order to be made the Court is to regard the following:
- How was the pet actually acquired;
- Which party has current ownership and possession;
- The extent either paid cared and paid for the associated costs of owning the pet;
- Any family violence;
- Threatened or actually cruelty towards the pet;
- The attachment of either party or any child to the pet;
- The ability of either party to care and maintain the pet independently;
- Any other fact or circumstance the Court considers relevant.
Often pets are considered family members, so it is important for parties to realise this could be a contested issue in a family law property settlement. Parties may also want to consider including any pets in a Financial Agreement made before or during a relationship – for more information about Financial Agreements, please see our article here: https://millersockhilllawyers.com.au/what-is-a-binding-financial-agreement/
Duty of Financial Disclosure
Throughout the process of a property settlement, both during negotiations and if proceedings are commenced, parties have a have a duty to give full and frank disclosure. Previously, this duty was under the Federal Circuit and Family Court of Australia (Family Law) Rules 2021[4] but it is now explicitly included in the Family Law Act 1975. While the duty has not changed, it will be expressly imposed through the Family Law Act.
The duty of disclosure:
- Applies to all financial and property disputes after separation.
- Is ongoing— parties must continue to provide relevant financial information as circumstances change – this includes to the date of when orders are made or an agreed settlement is reached.
- Failure to comply can result in penalties, including costs orders, contempt charges, or case dismissal.
If the duty is not upheld by both parties, the Court may:
- Take non-compliance into account in a property settlement.
- Impose sanctions, such as costs orders.
- Punish a party for contempt of court with a fine or imprisonment.
- Stay (halt) or dismiss all or part of the proceedings.
The duty of disclosure forms part of the pre-action procedures that must be followed (unless circumstances make it inappropriate or unsafe to do so) prior to Court proceedings being commenced – for more information on the pre-action procedures please see our article here: https://millersockhilllawyers.com.au/family-law-before-court-pre-action-procedures/
Family law property settlements are complex and you should be fully aware of both your obligations and what you may be entitled to. The above is general information only and it is important you seek advice relating to your specific circumstances.
If you require assistance or advice in your family law property settlement, contact our friendly and expert team at Miller Sockhill Lawyers on 07 5444 4750.
[1] Family Law Amendment Act 2024, section 3.
[2] Re : Cassandra Kathleen Kennon (Appellant/Wife) and Ian William Kennon (Cross-Appellant/Husband) Appeal [1997] FamCA 27 https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FamCA/1997/27.html
[3] Family Law Amendment Act 2024, section 24.
[4] https://www.legislation.gov.au/F2021L01197/latest/text