A variety of changes to the Family Law Act that come into effect on 10 June 2025 will change how the Family Law Courts make decisions on Property Settlements. These include:
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The impact of family violence
In making decisions about property and finances, including spousal maintenance, the courts will be required to consider the economic impact of family violence, including physical, emotional and financial abuse during the relationship. This means that consideration will need to be given to factors like:
- How family violence may have impacted one person’s financial contributions – for example, if they weren’t allowed or were unable to work as a result of ongoing physical or emotional violence or coercive control.
- If one person controlled all of the finances or spending.
- The future impact of family violence on one person’s financial position – for example, ongoing costs for counselling or rehabilitation and potentially a person’s inability to work as a result of the impact of family violence on their mental or physical health.
Failing to comply with financial disclosure requirements
While financial disclosure has always been a requirement, the court will be able to impose consequences for not complying with disclosure requirements, including:
- taking it into account in determining a property settlement
- imposing sanctions such as cost orders
- charging a person with contempt of court and imposing a punishment such as a fine or imprisonment.
- deferring or dismissing all or part of the proceedings.
Reckless spending, wastage and liabilities
Under the changes, the courts will consider the impact of reckless spending or asset wastage. This can include things like gambling, drug use, gifting large sums of money or assets, excessive spending, destroying property and many other types of wastage that may have impacted the overall value of the marital assets and property pool.
Importantly, the nature of any liabilities or debts incurred by one or both parties to fund these types of behaviours will also be considered by the courts in determining a property settlement.
Pets
Under family law, pets are considered ‘property’. However, a new framework will be introduced that allows the courts to award sole ownership to one person, separate to the treatment of other property. In doing this, the court will consider factors like:
- actual or threatened abuse towards the animal.
- the relationship or attachment of each person or a child to the animal.
- the ability of each person to care for the pet in the future.
It is important to note that the Act refers specifically to ‘companion animals’, which is defined as animals kept primarily for companionship. This means that assistance animals, animals kept as part of a business or for agricultural purposes, do not apply.
What these changes mean for those who have already separated
If you’re navigating a separation or divorce and need help understanding what may or may not be included in the property pool and how it may be split, the team at Lakey Family Law is here to help. We have extensive experience in all aspects of divorce, property settlements, and parenting matters and can assist. Contact us for an initial, obligation-free chat.
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