On 10 June 2025, important reforms were made to the Family Law Act 1975 which affects the division of property in family law. Whether through litigation (heard by the Federal Circuit and Family Court of Australia) or alternative dispute resolution avenues such as negotiations, these provisions will have effect when determining property and financial settlements for married and de facto couples seeking separation.[1] Changes to the Act include the expansion of the definition of family violence to include financial abuse and a new framework that will be implemented when determining ownership of family pets.
Main Changes You Need to Know
Domestic Violence
Expansion of the definition of family violence – section 4AB(2)(g) of the Family Law Act expanded the definition of family violence to expressly include ‘economic or financial abuse’.
Section 4AB(2A) outlines specifically what entails economic or financial abuse.[2] It includes:
- controlling or restricting a partner’s access to money or assets;
- sabotage of employment or income opportunities;
- forcing a family member to take on financial or legal liability; and
- coercion of giving or taking of a dowry; or coercion of an agreement to ‘do things in connection with a practice of a dowry’.
How does this affect you?
These provisions will allow a Court to make adjustments to property division orders in the favour of the party that has been prevented from making financial contributions to the relationship due to being subject to family violence.
Other factors the Court may consider
Where relevant, the Court will consider how a party subject to family violence currently is economically affected by it and how they may be affected by it in future.[3] The Courts will also consider factors such as wastage arising from reckless or intentional misuse of assets (i.e. gambling)[4], liabilities incurred to both parties[5] and child-care responsibilities[6].
Pets
The amendments introduce a new category of pets as ‘companion animals’[7], enabling the Court to acknowledge the emotional bond between owners and pets.
How does this affect you?
Prior to June amendment, the Courts had discretion when considering which factors were relevant to establishing ownership of a pet. This meant that parties had to utilise time and resources to convince a court why certain factors should be taken into account.
Now, a Court will be required to take into account a set list of factors when determining ownership. This may include considering how much each party cared for and maintained the animal, any attachment by a party or a child to the animal, the circumstances in which the companion animal was required and other factors listed out in s 79 (7) of the Act.
This list of factors the Court must consider is especially important as the amendments also mandate that a Court cannot award shared care arrangements but must only award sole ownership to one party.
Going through a separation is never easy. Therefore, it is crucial to be aware of these legislative changes in order to protect your rights and interests in property settlements. If you are facing difficulties with separation, our experienced team is ready to help.
Contact Verge Legal today to discuss your situation and explore your legal options.
[1] Federal Circuit and Family Court of Australia Website – Family law (property) changes from 10 June 2025 | Federal Circuit and Family Court of Australia
[2] s 4AB of the Family Law Act 1975
[3] Family law changes from June 2025: Information for family law professionals | Attorney-General’s Department
[4] s 79(5)(d) of the Family Law Act 1975
[5] s 79(5)(e) of the Family Law Act 1975
[6] s 79 (5)(f) of the Family Law Act 1975
[7] s 4(1) of the Family Law Act 1975