Starting June 2025, significant changes to the Family Law Act will come into effect, impacting how property matters are handled during relationship breakdowns. These changes aim to provide clearer guidelines and more equitable outcomes for separating couples. Here’s what you need to know about the upcoming amendments and how they will affect property settlements.
Recognition of Economic Abuse
One of the key changes is the clearer recognition of economic or financial abuse as a form of family violence. This includes:
- Moving existing examples of economic abuse into a stand-alone provision.
- Expanding examples to include dowry abuse and unreasonable denial of financial autonomy.
Property Settlement Framework
The new amendments codify aspects of case law to clarify the process for determining property settlements. The court must consider whether it is just and equitable to make any order adjusting the parties’ property interests. The decision-making process involves several steps:
- Identify Rights and Interests: Determine each party’s legal and equitable rights and interests in any property, and their liabilities.
- Assess Contributions: Consider what each party contributed to the relationship before, during, and after the relationship.
- Current and Future Circumstances: Evaluate the parties’ current and future circumstances, including the impact of family violence, wastage of property, liabilities, and housing needs.
- Final Percentage Split: Allocate specific property, finances, and liabilities to the parties to implement the final percentage split.
New Considerations in Property Proceedings
The court will now consider additional factors when assessing contributions and current and future circumstances:
- Family Violence: The economic effect of family violence on a party’s ability to contribute.
- Wastage: The impact of intentional or reckless wastage of property or financial resources.
- Liabilities: The nature and impact of any liabilities incurred by the parties.
- Housing Needs: The need to provide appropriate housing for children under 18.
Companion Animals
The amendments introduce a framework for dealing with family pets in property cases. The court can make orders about a pet that meets the definition of a companion animal, considering factors such as:
- History of abuse towards the animal.
- Attachment of a party or child to the animal.
- Ability of each party to care for the animal in the future.
Less Adversarial Approach
The court’s powers to manage family law proceedings through a less adversarial approach are now expressly set out. This aims to reduce the stress and intimidation of court processes for families, including the use of technology for remote attendance and allowing evidence of family violence that may not otherwise be admissible.
Duty of Disclosure
The duty of disclosure in financial or property matters is elevated from court rules into the Family Law Act. Separating couples must provide all relevant financial information and documents to each other and the court throughout the proceedings.
Conclusion
These changes to the Family Law Act aim to create a more equitable and transparent process for property settlements during relationship breakdowns. By recognising economic abuse, clarifying the property settlement framework, and introducing new considerations, the amendments seek to protect the interests of all parties involved.
Seeking Legal Advice
Navigating a financial separation can be complex and requires a thoughtful approach. If you are going through a separation and need legal guidance, My Legal Crunch Lawyers are here to assist you. Contact us today to schedule a free consultation with one of our experienced lawyers.
Notice: My Legal Crunch is not a legal aid service provider, save for acting as an Independent Children’s Lawyer by Court Appointment.
