From 10 June 2025, significant reforms to Australia’s family law system will come into effect, particularly in how property settlements are handled following separation or divorce. These changes aim to ensure a more equitable outcome for separating parties by taking into account family violence, clarifying the treatment of companion animals, and codifying the duty of financial disclosure under the Family Law Act 1975.

The Property Settlement Process: What’s Staying the Same?

Before diving into the new changes, it’s important to understand how property settlements are determined under Australian family law.

The court follows a four-step process:

  1. Identify and value the property pool, including assets and debts of both parties.
  2. Assess contributions – financial, non-financial, homemaking, and parenting contributions.
  3. Consider future needs, such as age, income, health, care of children, and earning capacity.
  4. Make orders that are just and equitable, based on the entire circumstances of the case.

This process remains intact. However, the 2025 reforms add new layers to how courts will assess contributions and current and future needs, particularly where family violence has occurred.

Family Violence Now Explicitly Considered in Property Settlements

Under the updated Family Law Act, courts will be required to consider the economic impact of family violence when making property orders. While courts have previously had discretion to do this, the new reforms make it a mandatory part of the decision-making process.

This may include situations where:

  • One party was prevented from working
  • There was financial control or coercive behaviour
  • The victim-survivor suffered a long-term economic disadvantage because of abuse

Section 4AB of the Family Law Act defines family violence as behaviour that coerces, controls, or causes a family member to be fearful. This can include financial abuse, such as restricting access to money, bank accounts, or employment opportunities.

Important Clarifications:

These changes do not allow the family courts to:

  • Prosecute someone for family violence (this remains under criminal law)
  • Award compensation for harm caused by abuse (this falls under victim compensation schemes)
  • Issue or vary family violence protection orders (handled by state courts)

Pets in Property Settlements: Companion Animals Now Recognised

In another long-awaited change, the new family law provisions provide clearer guidance on pets in property disputes.

Previously, pets were treated as property, and disputes often lacked nuance. Under the new law, courts can now consider:

  • Any animal abuse or threatening behaviour involving the pet
  • The emotional attachment of children or parties to the animal
  • The overall welfare of the pet

The Court still cannot order joint custody or shared ownership of a pet. However, it can determine which party will retain the animal based on the above factors.

Duty of Financial Disclosure: Now Legislated

While parties have always had a duty to disclose financial information under the Family Law Rules, this obligation will now be embedded in the Family Law Act 1975 itself, reinforcing its importance.

This applies to all property and financial matters, including:

  • Bank accounts, investments, shares
  • Superannuation
  • Business interests
  • Liabilities such as loans or credit cards

Failure to disclose may result in:

  • Sanctions or cost orders
  • Adverse inferences in court
  • Contempt of court charges
  • Dismissal or delay of proceedings

Disclosure is ongoing throughout the entire process, not just at the beginning.

When Do the Changes Come into Effect?

The changes apply from 10 June 2025 to:

  • All new matters filed from that date onwards
  • Ongoing cases that have not yet reached a final hearing

If your property settlement is already in progress, and you haven’t yet had your final hearing, these changes may still apply.

What Should You Do if You’re Separating After June 2025?

If you’re currently separating or considering it, it’s vital to understand how these new laws might affect your property entitlements. In particular:

  • If you’ve experienced family violence, you may now have additional financial considerations that the court must assess
  • If there are disputes over pets or financial control, the updated laws provide more structured guidance
  • If you are entering or already involved in a property dispute, you must take your financial disclosure obligations seriously

At Maatouks Law Group, we are here to help you understand your rights under the new laws and develop a tailored strategy for your financial future.

Final Thoughts: Legal Support Through a Changing System

The June 2025 changes to the Family Law Act mark a shift toward a more inclusive, realistic approach to financial settlements after separation. With the courts now considering the economic consequences of family violence, acknowledging the emotional value of pets, and formalising the duty of disclosure, the legal landscape for separating couples in Australia has become more nuanced and protective.

Whether you’re negotiating privately, seeking Consent Orders, or heading to court, the family law team at Maatouks is here to guide you through these important changes.