Understanding The Family Law Act Changes 2024
The Family Law Amendment Act 2024 introduces significant reforms to property settlements, bringing greater clarity, fairness, and predictability to financial disputes following separation. These changes will take effect from 10 June 2025 and mark one of the most substantial updates to Australia’s family law system in over a decade.
For years, property settlements under the Family Law Act (1975) have often been complex and unpredictable for separating couples. The new reforms codify certain key legal principles, ensuring that property settlements better follow a more structured and consistent framework. Additionally, the Act formally recognises the economic impact of family violence, strengthens financial disclosure obligations, and introduces new considerations for liabilities, asset wastage, and pet ownership in property disputes.
These amendments aim to streamline financial settlements, reduce unnecessary litigation, and ensure that vulnerable parties—particularly those affected by family violence or financial abuse—receive fairer outcomes. Whether you are preparing for separation, negotiating a financial settlement, or seeking legal representation, understanding these changes is crucial.
Clearer Property Settlement Framework
The Family Law Amendment Act 2024 codifies some parts of how property settlements are determined, ensuring a clearer, more structured approach for separating couples. Previously, family law courts relied on a mix of legislation and case law principles, potentially making property settlements complex and unpredictable—particularly for self-represented parties.
Under the new framework, the steps for determining a property settlement are now explicitly set out in legislation. Courts must:
Identify the property and liabilities of both parties – This includes all assets, debts, and financial resources.
Assess the contributions of each party – Both financial contributions (e.g., income, property purchases) and non-financial contributions (e.g., caregiving, homemaking) will be considered.
Consider the current and future financial circumstances of each party – This includes the need for housing, ongoing care responsibilities, and economic disparities.
Ensure that any property settlement order is just and equitable – Courts will evaluate whether the proposed division of assets achieves a fair outcome.
What This Means for Separating Couples
Reduces uncertainty in property settlements, making outcomes more predictable.
Ensures financial and non-financial contributions are assessed consistently.
Clarifies how liabilities (such as debts and loans) are treated in settlements.
Minimises the reliance on case law, making legal principles more accessible.
It’s worth noting that judicial discretion and case law remain relevant when interpreting how financial and non-financial contributions are assessed. The updates, however, will provide a clearer decision-making structure. These changes will help separating couples understand their entitlements when dividing assets.
Family Violence Considerations in Property Settlements
For the first time, family violence is explicitly recognised in property settlement decisions under Australian family law. The Family Law Amendment Act 2024 ensures that courts must now consider family violence when assessing financial contributions, particularly where abuse led to economic hardship. While adjustments may be made, they will depend on case-specific evidence rather than being automatic.
Previously, the impact of family violence on property settlements was addressed through case law, however courts applied this principle inconsistently, and it was often difficult for survivors to prove that family violence affected their financial circumstances. The new legislation codifies these considerations, ensuring they are formally embedded in the decision-making process.
Key Changes Under the New Law
Courts must consider the financial and economic consequences of family violence, including how abuse affected a person’s ability to contribute financially or non-financially to the relationship.
Expanded definitions of economic abuse, such as controlling finances, sabotaging employment, or accumulating debt in a partner’s name, will now be recognised as relevant to property settlements.
Victims of family violence may receive a greater share of assets where the abuse resulted in economic hardship or disadvantage.
Financial abuse and coercive debt will be considered when determining liability for debts incurred during the relationship offering new protections for survivors.
How This Affects Property Settlements
Ensures financial abuse is taken into account when dividing assets and debts.
Recognises the long-term financial impact of family violence, including lost earnings and disrupted career opportunities.
Helps prevent abusive partners from benefiting financially at the expense of their former spouse.
Provides clearer legal protections for individuals who experienced financial coercion or manipulation.
These changes reinforce the importance of legal representation for individuals affected by family violence, ensuring they receive fair and just outcomes in property settlements.
Stronger Financial Disclosure Rules
The Family Law Amendment Act 2024 strengthens financial disclosure obligations, ensuring that separating couples fully disclose their financial circumstances early in the process. The Act reinforces financial disclosure obligations by embedding them in legislation, making them more enforceable. While disclosure has long been required under court rules, this change provides stronger legal backing and penalties for non-compliance.
Key Changes Under the New Law
Mandatory early disclosure – Parties must provide full and frank disclosure of all relevant financial information at the outset of proceedings, reducing delays and disputes.
Expanded scope of disclosure – The law clarifies that disclosure includes assets, liabilities, income, superannuation, and financial resources, regardless of whether they are in joint or individual names.
Greater accountability – Failing to disclose financial information or attempting to hide assets can result in penalties, adverse costs orders, or property settlement adjustments.
How This Affects Property Settlements
Encourages transparency, preventing one party from concealing assets or income.
Reduces the likelihood of drawn-out legal disputes by promoting early financial clarity.
Ensures fairer settlements, as both parties will have access to complete financial information.
Empowers courts to penalise non-disclosure, reinforcing compliance with financial transparency requirements.
By formalising financial disclosure requirements in legislation, these changes protect separating couples from financial manipulation and help resolve property disputes more efficiently.
Recognition of Companion Animals in Property Disputes
For the first time, companion animals (pets) are formally recognised as a distinct category of property in family law. The amendments introduce specific considerations for pet ownership in property disputes, ensuring that factors such as emotional bonds, caregiving, and financial support are assessed alongside ownership. While pets remain classified as property, these changes acknowledge their importance in family life.
Key Changes Under the New Law
Pets are now a separate category of property – Courts must consider specific factors when determining who retains ownership of a pet.
Family violence considerations – If one party has a history of animal cruelty, neglect, or abuse, this will be taken into account when determining ownership.
Care history matters – The court will assess who primarily cared for and financially supported the pet, rather than simply awarding ownership to the party who purchased it.
The emotional bond between the pet and children – If a child has a strong attachment to a pet, this may influence the court’s decision to ensure stability for the child.
How This Affects Property Settlements
Ensures pets are not simply treated as inanimate property, recognising their role in family life.
Protects pets from being awarded to abusive partners in cases of family violence.
Prioritises the best interests of the pet, considering care, financial support, and emotional bonds.
Reduces disputes over pet ownership, providing clear legal guidance on how decisions are made.
These changes acknowledge the emotional significance of pets in separating families, ensuring fairer and more compassionate outcomes in property settlements.
New Considerations for Liabilities and Asset Wastage
The Family Law Amendment Act 2024 introduces clearer rules for handling debts and asset wastage in property settlements. Reckless financial behaviour or coercive debt may influence asset division where it is proven to have significantly impacted the financial position of the other party.
Key Changes Under the New Law
Recognition of liabilities – Courts must explicitly identify and assess liabilities (such as loans, tax debts, and credit cards) when determining property settlements.
Clarification of wastage – The law now formally recognises that reckless or intentional financial losses by one party (such as gambling, fraud, or excessive spending) can affect how assets are divided.
Consideration of financial abuse – If one party coerced the other into taking on debt or restricted their financial autonomy, the court may adjust the property settlement accordingly.
Stronger protections for debt disputes – Courts will assess whether liabilities were incurred for the joint benefit of the relationship or were solely the responsibility of one party.
How This Affects Property Settlements
Prevents reckless financial decisions from unfairly disadvantaging one party.
Ensures that liabilities are properly accounted for, reducing disputes over debt responsibility.
Strengthens protections against financial abuse, particularly in cases involving coercive debt.
Provides clearer legal guidance, making debt and asset wastage considerations more predictable.
By formally recognising liabilities, financial abuse, and asset wastage in property settlements, these changes promote fairer and more just financial outcomes for separating couples.
Expanded Arbitration and Less Adversarial Approaches
The Family Law Amendment Act 2024 promotes alternative dispute resolution by expanding the use of arbitration and introducing a less adversarial approach to property and financial disputes. These changes aim to reduce the stress, time, and costs associated with lengthy court proceedings, encouraging faster and more cooperative resolutions.
Key Changes Under the New Law
Wider use of arbitration – Courts can now refer a broader range of financial and property matters to court-ordered arbitration, making it a more accessible option for resolving disputes.
Less adversarial approach – The Less Adversarial Trial (LAT) framework, previously only used in parenting cases, is now extended to property and financial proceedings, allowing courts to manage evidence more flexibly and encourage cooperative dispute resolution.
Greater judicial discretion – Judges will have more flexibility to simplify hearings and manage disputes proactively.
Encouraging early settlements – The emphasis on alternative dispute resolution aims to reduce unnecessary litigation, encouraging parties to reach agreements outside of court where possible.
How This Affects Property Settlements
Speeds up dispute resolution, reducing delays in financial and property settlements.
Minimises legal costs, as arbitration and LAT methods are often more cost-effective than court trials.
Encourages cooperation, reducing hostility and stress in financial disputes.
Gives judges more flexibility, ensuring that property matters are resolved fairly and efficiently.
By expanding arbitration and promoting a less adversarial approach, these changes help separating couples navigate financial disputes with less conflict and greater efficiency.
What These Changes Mean for You
These changes aim to ensure fairer, more transparent, and efficient financial outcomes for separating couples. By formally recognising family violence, financial abuse, asset wastage, and companion animals, as well as strengthening financial disclosure and arbitration processes, the new laws provide clearer guidelines for property division.
For individuals navigating a divorce or separation, these updates provide greater certainty and protection when negotiating financial settlements. However, every situation is unique, and understanding how these changes apply to your specific circumstances is crucial.
Support and Guidance from Trusted Family Lawyers
At Allison Rowe Family Lawyers, we understand that property settlements and financial matters can be complex and stressful. With these new legal reforms, it’s more important than ever to understand your rights and obligations when negotiating a property settlement.
You don’t have to navigate this process alone. Our team provides tailored solutions and compassionate legal support, helping you move forward with clarity and confidence. Our experienced team stays up to date with the latest legal developments, ensuring you receive accurate advice and strategic representation.
If you need guidance on how the Family Law Act changes impact your property settlement, we’re here to help. Call us on 03 8357 9157 or fill out our online contact form to arrange a confidential consultation and take the first step toward securing your financial future.