Changes to The Family Law Act - Property Amendments

The Family Law Amendment Act 2024 comes into effect from 10 June 2025, and introduces major reforms to property settlement and related financial matters in Australia.

These amendments represent the most significant changes to the financial provisions of the Family Law Act 1975 since 2009. This will operate to all property settlements from 10 June 2025, except where a final hearing has already commenced.

Below is a summary of the key changes relevant to property settlements, with a focus on their practical implications:

1. Codification of the Property Settlement Framework

• The Act codifies the four step approach to property settlements which is the most common approach used and drawn from case law. It requires the court to:

  • Identify all property and liabilities of the parties.

  • Assess each party’s contributions (financial, non-financial, and to the welfare of the family).

  • Consider each party’s current and future circumstances.

  • Make orders only if just and equitable in all the circumstances.

• The above is intended to make the law more accessible and reducing reliance on case law for the decision-making framework.

2. Family Violence and Economic Abuse

• The definition of family violence is expanded to expressly include economic and financial abuse (including dowry abuse).

• The court must consider the economic impact of any family violence when determining both contributions and current/future circumstances.

• This change ensures that the financial consequences of family violence are properly recognised in property settlements, potentially resulting in greater adjustments in favour of victims.

3. Companion Animals (Pets)

• Companion animals are now specifically addressed as a category of property.

• The court must consider several factors when making orders about pets, including:

  - Any history of abuse or cruelty.

  - The attachment of parties or children to the animal.

  - Each party’s ability to care for the animal.

• The court can order sole ownership, transfer (with consent), or sale of the animal, but cannot order shared ownership or care.

4. Duty of Financial Disclosure

• The duty of full and frank financial disclosure is now enshrined in the Family Law Act (previously only in the Rules).

• This duty is ongoing and applies from the preparation stage through to the finalisation of proceedings.

• Non-compliance can result in costs orders, contempt, or adverse inferences in the property settlement.

5. Consideration of Liabilities, Wastage, and Housing Needs

• The court must now consider the following which have previously been dealt with in case law as an addback:

  • The nature and circumstances of any liabilities incurred by the parties.

  • The effect of any material wastage of property or financial resources, if caused intentionally or recklessly.

  • The need for either party to provide appropriate housing for children under 18.

6. Less Adversarial Approach

• The court is empowered to use a less adversarial approach in property and financial matters, not just parenting matters, particularly where family violence is alleged.

7. Other Notable Changes

• The amendments clarify and expand the matters that can be referred to arbitration.

• The costs provisions are consolidated and clarified within the Act.

• There are new protections for sensitive information (protected confidences) in family law proceedings.

If you would like to discuss how the above impacts on you, please contact Gannon Family Law to discuss.