On 10 June 2025, significant amendments to the Family Law Act 1975 came into force, changing how courts determine property settlements and spouse maintenance. The reforms are designed to make the division of property and finances safer, simpler, and fairer for separating families, particularly where family violence is present.
Financial Abuse and Family Violence in Property Matters
The amendments require courts to consider the impact of family violence in two main ways: on the contributions each party has made to the marriage and on their current and future circumstances. The well-known case of Kennon v Kennon [1997] FamCA 27 has now been legislated, requiring courts to consider the effect of any family violence on a party’s ability to make contributions to the marriage.
For the first time, the Act explicitly recognises family violence as a relevant factor in property settlements. The court must consider the economic impact of family violence when determining what is just and equitable. The definition of family violence has been expanded to include economic or financial abuse and coercive or controlling conduct. Examples of financial abuse include:
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Restricted access to finances, such as controlling bank accounts or income
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Accumulating debt in the other party's name without consent
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Concealing assets to disadvantage a spouse in settlement negotiations
A party alleging such conduct must show a connection between the family violence and its effect on their ability to contribute to the marriage. Evidence of the history of family violence will be relevant to the court’s assessment.
The Act also now requires the court to consider the impact of family violence on a party’s current and future circumstances, such as the cost of medical treatment or counselling needed as a result of the violence.
Pets as Companion Animals
For the first time in Australian family law, pets are no longer treated as mere property. They are now referred to as "companion animals", distinguished from assistant or farm animals. The court can make orders about the ownership and retention of a companion animal, taking into account:
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Who has provided primary care (feeding, walking, veterinary expenses)
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The emotional bond between the pet and each party
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Instances where pets have been used to control or manipulate a spouse
Wastage of Assets
A new "wastage factor" has been introduced. Courts must now consider the effect of any material wastage, caused intentionally or recklessly by a party, on property or financial resources. The wastage must be material and caused intentionally or recklessly, such as significant gambling losses. Whether such losses are material depends on the size of the asset pool and the circumstances of the case.
Current and Future Needs
The amendments introduce new factors for courts to consider in property settlements and spouse maintenance, including:
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The impact of family violence on a spouse victim
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The need for either party to provide appropriate housing for a child under 18 in their care
Courts can now consider the impact of family violence on a party’s current and future needs, including their earning capacity. The need to provide appropriate housing for a child under 18 is now specifically included as a consideration. This may result in the court exercising its discretion more generously in favour of the primary carer of children under 18, especially if they do not retain the former matrimonial home.
Duty of Disclosure
The strict and mandatory rules around financial disclosure, previously set out in court rules, have now been codified in the Act. Both parties must provide complete, transparent, and ongoing disclosure of documents and information relevant to their financial circumstances. The court now has greater discretion to impose penalties on parties who fail to comply with these obligations.
The court also has discretion to limit the use of sensitive information if its disclosure could cause harm. Protected records may include mental health reports, medical histories, domestic violence risk assessments, and evidence of online harassment or coercion.
Summary
These amendments mark a pivotal shift in Australian family law, explicitly recognising the economic impacts of family violence and the consequences of reckless or intentional conduct in managing assets. By acknowledging pets as companion animals and strengthening financial disclosure obligations, the law reflects a more humane and just approach to resolving family disputes.
Since 1975, Australian family law has operated as a "no fault" system where negative behaviour did not affect property settlements. The recent amendments represent a nuanced shift away from this principle, aiming to address and remedy the adverse impacts of negative behaviour in family law property matters, in line with current societal expectations for fairness and accountability
This article contains general information only. For advice regarding your personal circumstances, always seek individual advice from a qualified professional. Read the full Divorce Resource.com.au Disclaimer here
Published by, Christine Weston
Founding Director and Creator of Divorce Resource
Australian Nationally Accredited Mediator and Divorce Coach.
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