Understanding the Changes to the Family Law Act in Australia

WRITTEN BY SENIOR FAMILY LAWYER REBECCA LUCAS

The Australian Government is implementing significant changes to family law, set to take effect on 10 June 2025. These amendments to the Family Law Act 1975 primarily focus on property settlements for separating couples. The updates aim to improve fairness, transparency, and the consideration of financial abuse and family violence in property divisions. The key aspects of the new laws and how they may impact separating couples are summarised below.

Court Considerations in Property Settlements  

From 10 June 2025, the well-understood and implemented structured process applied when determining property settlements will be inserted into the Family Law Act and, therefore, a legally binding process. This process the court will be required to undertake is:

1. Identify all property and liabilities: This includes assets such as the family home, savings, investments, and superannuation, as well as any debts owed by either party.  
2. Assess contributions to the property pool: This encompasses financial and non-financial contributions made by each party during the relationship, including homemaking and caregiving responsibilities.  
3. Consider each party’s current and future needs: Factors such as age, health, and childcare responsibilities will be reviewed to determine how property should be divided.  
4. Ensure settlements are just and equitable: The overarching principle guiding decisions is fairness, ensuring neither party is left in undue financial hardship.  

These changes apply to court-ordered property settlements and those negotiated outside the court system. Couples who settle their finances independently should also follow this process to ensure fairness.  

One of the most notable updates in the new laws is the clear recognition of the economic impact of family violence in property settlements.

What is considered family violence?

Family violence includes physical abuse, threats, intimidation, coercion, and other controlling behaviours. Economic abuse—such as preventing a partner from working, controlling access to money, or incurring debts in the other party’s name—also falls under this category.

How will courts consider family violence?

If one party has suffered financial hardship due to family violence, the courts will factor this into their settlement. For example, if a victim was unable to work or forced into financial dependence, the economic consequences of this mistreatment may influence their share of the property pool.

However, the family law courts will not have the power to: 

• Sentence an individual for family violence offences (this remains within the jurisdiction of state and territory criminal courts).
• Award compensation for harm caused by family violence (victims may seek compensation through state and territory schemes).
• Issue or amend family violence protection orders (these are handled by state and territory courts).

The court does, however, have the ability to make injunctions restraining a party from undertaking such behaviours, and such injunctions can be similar to terms as set out in state or territory protection orders.

Another significant change involves how family courts will handle disputes over companion animals (family pets).

• Separating couples can negotiate pet arrangements privately, as most do.
• If an agreement cannot be reached, the courts can issue an order regarding pet ownership.
• Courts will consider:
  • The well-being of the animal.
  • Whether there has been any abuse or threats involving the pet.
  • The attachment of either party (or children) to the animal.

However, the courts will not order joint ownership or shared custody arrangements for pets. Instead, the ruling will determine which party assumes full responsibility for the animal.

Transparency in financial matters is crucial in family law disputes. Under the new laws:  

• Separating couples are legally required to provide full financial disclosure to each other and the court.  
• This duty of disclosure, previously outlined in court rules, will now be explicitly stated in the Family Law Act 1975.  
• The obligation is ongoing, meaning both parties must continuously disclose relevant financial information throughout their negotiations and court proceedings. 

Failing to comply with financial disclosure rules may result in serious consequences, including: 

• Courts factoring non-compliance into their settlement decisions.  
• Imposing penalties, such as cost orders against the non-compliant party.  
• Possible contempt of court charges, which could lead to fines or imprisonment.  
• Dismissal or deferral of proceedings.

The new laws will not retroactively alter existing property settlements. If a final court order has already been issued, it remains in effect, and parties must continue to comply with it.

For cases presently before the courts:

• The new rules will apply to all new and ongoing proceedings, except those where a final hearing commenced before 10 June 2025 however judgment is not yet handed down.
• Individuals currently engaged in legal proceedings may need to reassess their case strategy and seek legal advice to understand how the changes may affect them.

The amendments to the Family Law Act 1975 do not affect child support arrangements. Child support remains a separate legal issue, administered by Services Australia. Parents with concerns about child support should contact Services Australia for assistance before contacting a family lawyer.

The amendments to Australia’s family law system aim to:

• Ensure greater fairness in property settlements.
• Address the economic consequences of family violence.
• Introduce clearer guidelines for handling disputes over pets.
• Strengthen financial transparency and disclosure requirements.

For couples going through separation, it is important to understand these changes and how they may impact their financial and legal positions. Seeking professional legal advice from one of our Family Lawyers in Adelaide is the safest way to ensure compliance with the new laws, so get in touch with us today.

For more information, download the factsheet supplied by the Australian Government’s Attorney-General’s Department website, or call our family lawyers today.