There are some additional changes coming into effect from 10 June 2025 under the Family Law Act 1975. If you are separating and yet to finalise your property settlement, then these changes will apply to you (unless you are already in the Court system and your Final Hearing has commenced).
A Refresher
Prior to the changes, when considering a property matter, the Courts must follow this process:-
- Identify all the property and liabilities of the parties
- Assess each party’s contributions to the property pool, and to the welfare of the family
- Assess each party’s current and future circumstances. To do so, the court will consider things like each party’s age, health status and the care and housing needs of any children.
- Only make orders that are, in all of the circumstances, just and equitable
The Changes – Property Settlement
From 10 June 2025, the above process will be formally outlined in the Family Law Act.
In addition, the law will also recognize that the housing needs of the children must be prioritized in property settlements. For instance, in cases where one parent has the primary care of the children, the courts may favour ensuring that the children’s housing needs are met by granting the family home or ensuring sufficient funds for suitable accommodation. This places children’s wellbeing at the centre of financial decision in family law matters.
The Changes – Family Violence
From 10 June 2025, the economic effect of family violence must be considered by the court, when deciding a property settlement matter, where relevant. The definition of family violence and what constitutes family violence, for the court’s purposes, include things like economic or financial abuse (with specific but not limiting examples provided including forcing a family member to take on a financial or legal liability, accumulating debt in a family member’s name and hiding or falsely denying the receipt of money). For instance, if one person has controlled the finances or spending in a relationship or where one person in a relationship has limited the other person’s ability to work. This is relevant in determining a party’s contributions to the property pool and top the welfare of the family, when assessing their current and future needs. An example of future needs that a Court might consider are ongoing expenses for counselling or rehabilitation attributed to the family violence experienced in a relationship.
Whilst the Court must now have regard to the economic effect of family violence when determining a property settlement matter, it cannot:-
- Sentence a party for engaging in family violence.
- Make an Order for compensation for harm caused to a party by family violence.
- Make a Family Violence Order to protect someone from family violence (this remains in the jurisdiction of state and territory courts).
- Alter an existing Order made by state or territory courts to protect someone from family violence.
The Changes – Pets
From 10 June 2025, orders under the Family Law Act 1975 can be made about what happens to family pets. Importantly, family pets do not include assistance animals, animals kept as part of a business, animals kept for agricultural purposes or animals kept for scientific testing or experimental purposes.
In considering what order, if any, to make, the Court must consider a specific list of matters that apply:-
- The circumstances in which the animal was acquired;
- Who has ownership or possession of the animal;
- The extent to which each party care for, and paid for the maintenance of, the animal;
- Any family violence to which one party has subjected or exposed the other party;
- Any history of actual or threatened cruelty or abuse by a party towards the animal;
- Any attachment by a party, or a child of the relationship, to the animal;
- The demonstrated ability of each party to care for and maintain the animal in the future without the support or involvement of the other party; and
- Any other relevant fact or circumstance.
Importantly, the Court cannot make Orders for joint ownership or arrangements for the sharing possession of the family pet. Instead, the Court may make an Order that one party retain the animal (or a person joined to the proceedings), that the animal be transferred to another person who has consented to the transfer or that the animal be sold.
The Changes – Disclosure
Separating couples already have a duty to give each other (and the Court) all relevant financial information and documents. From 10 June 2025, this duty of disclosure can be found in the Family Law Act 1975 instead of contained in the Federal Circuit and Family Court of Australia (Family Law) Rules 2021. The rule is the same, it has simply been elevated from the Rules to the Act to enable parties to better understand their obligations and improve compliance.
The Changes – Court Discretion
Some additional changes have also been made allowing the Court to use a less adversarial approach in property and financial matters, to enhance their ability to direct proceedings and to manage evidence in proceedings where there may be family violence.
The Changes – Superannuation
From 10 June 2025, the Act will provide for more accurate methods for valuing superannuation to ensure that property settlements are more fair and equitable.
The Changes – Privacy Protections
Sensitive documents relating to family violence (including medical records or counselling records) will now receive additional protections to prevent misuse in legal proceedings. Particularly, if the Court is satisfied that a document (or part thereof) is likely to harm (or might cause harm) to the protected confider, or to a child to whom the proceedings relate, if the evidence were adduced or the document produced, inspected or copied, then a direction may be made that the document not be produced, copied or inspected under the Act. The best interests of the children remain the paramount consideration in considering the direction.
Do you have any questions about these changes and how they might affect your individual circumstances? Contact our family law team.
