From 10 June 2025, changes to the Family Law Act will come into effect. The most significant change is the introduction of financial consequences for perpetrators of family violence.
The key changes to family law legislation from 10 June 2025 are:
- Family violence will be a relevant factor when deciding property settlements and spousal maintenance
The changes will insert new sections into the Family Law Act, requiring a Court to consider the impact of any family violence or economic or financial abuse when deciding on a property settlement or the payment of spousal maintenance.
In particular the Court will need to consider:
- whether family violence has affected a partner’s ability to contribute financially or non-financially during the relationship
- whether family violence will have an impact on a partner’s current and future circumstances.
Prior to the changes, family violence has been a consideration in property settlements in only very narrow circumstances. This has meant that it has rarely impacted outcomes. The new legislation therefore represents a significant change.
- Wastage, liabilities and housing needs will also be relevant factors when deciding property settlements
Although previously open to the Court to consider when deciding a property settlement, wastage, liabilities and housing needs will become specific factors for the Court to consider in property settlements.
In relation to wastage, when considering each party’s contributions, the Court will need to consider whether one person has intentionally or recklessly lost or given away assets or financial resources, during or after the relationship.
In relation to liabilities, the Court will be able to consider the nature of the liabilities, the circumstances that brought about those liabilities and the impact on those liabilities on the financial future of the parties.
In relation to housing needs, the Court will need to give additional consideration to the need for either partner to provide appropriate housing for a child.
- The list of examples of family violence will be expanded
The examples of economic and financial abuse set out in the Family Law Act will be expanded to include a broader range of coercive and controlling behaviours. Those behaviours include:
- Controlling a partner’s assets or money.
- Using deception or pressure to force a partner to take on debts.
- Interfering with a partner’s work, such as
- Sabotaging job opportunities
- Preventing a partner from pursing work or education.
- Using pressure or deception to manipulate a partner in relation to government payments.
- Dictating how much a partner can spend on necessities.
- Denying a partner access to financial resources for necessities.
- Cutting a partner off financially as a form of punishment.
- Pressuring a partner to enter into legal contracts or change their Will.
- Witholding child support as a means of pressure or punishment of a partner.
- In relation to dowries:
- Forcing a person to provide money or assets as a dowry.
- Concealing actions of agreements in relation to a dowry.
- The Court’s approach to determining property settlements will be detailed in the legislation
The legislation will confirm the approach the Court takes in deciding property settlements.
It will specify that as a starting point, the Court must consider whether it is just and equitable to make any order changing the parties’ existing property ownership. This consideration permeates the Court’s entire decision-making process, which involves the following 4 steps:
- First, identifying each party’s legal and equitable rights in property and their liabilities. Determining what each party contributed before, during and after the relationship.
- Second, allocating a percentage division of the assets and liabilities, based on each party’s contributions.
- Third, considering the parties’ current and future circumstances, and making any appropriate adjustment to the percentage division based on these considerations.
- Fourth, determining the overall percentage split and allocating assets and liabilities to each party to implement the percentage split.
- There will be greater recognition of the importance of pets
For more information about the important changes concerning pets, see the insight from Karen Devey, Senior Associate at Blackwood Family Lawyers at https://www.blackwoodfamilylawyers.com.au/insights/pet-custody-in-family-law-changes-are-coming/
- The Court’s less adversarial approach to trials will be extended to property matters
Previously only applied to parenting matters, the Court will be able to take a less adversarial approach to trials about property and financial matters.
This will give the Court more flexibility in managing how proceedings are run, for instance by permitting technology to facilitate remote attendance where there are allegations of family violence.
- Obligations to make full financial disclosure will be given greater importance
Each person’s obligation to fully disclose their financial circumstances will be detailed in the Family Law Act, instead of in the Court Rules. This likely signals a greater emphasis from the Court on parties complying with their obligations about disclosure and consequences if they fail to do so.
- Children’s Contact Services will be regulated
Some parents need the assistance of independent organisations to facilitate changeovers or supervise children’s time with a parent. The Family Law Act will include a new regulatory framework for Children’s Contact Services, with the aim of improving the safety of parents and children.
If you are going through a separation, it is important that you obtain expert advice from family lawyers who are across these new and significant changes which come into effect on 10 June 2025.
The changes will impact both negotiated property settlements and property settlements in Court. For court matters, it will be particularly important that affidavits are carefully drafted to address the new legislation, including detailing any incidents of family violence in an admissible and compelling form.
Blackwood Family Lawyers is recognised as one of Melbourne’s best family law firms. For expert assistance from our family lawyers in Melbourne, contact us on 03 8672 5222.
