Changes Coming To Family Law Property Settlement In June 2025

Significant changes to Australia’s family law system will come into effect on 10 June 2025, impacting how property settlements are determined following separation. These updates introduce a requirement for courts to consider the economic impact of family violence, clarify the treatment of pets in property disputes, and reinforce the duty of financial disclosure. This article outlines the key changes and what they mean for individuals navigating family law property matters.

Process For Determining Property Settlement

When considering a property matter, the family law courts must:

Identify all property and liabilities (debts) of the parties
Assess each party’s contributions to the property pool, and to the welfare of the family
Assess each party’s current and future circumstances. The family law courts will consider matters such as each party’s age and state of health, and the care and housing needs of any children
Only make orders that are, in all circumstances, just and equitable.

As of the 10 June 2025, the economic consequence of family violence must be considered by the family law court, where relevant, when making decisions. In doing so they will be considering circumstances whereby a person may be economically or financially abused and how this may constitute family violence.

Relevance Of Family Violence On Property Settlements

Section 4AB of the Family law Act 1975 describes family violence as behaviour by a person that coerces or controls a member of the person’s family (e.g. violence, threats), or causes the family member to be fearful.

Courts will be considering the impact of family violence when assessing party contributions and their current and future circumstances. This includes when one party has sole control of all finances and spending along with instances where one party was not allowed to work.

However, the 10 June 2025 changes do not permit the family law courts to:

Sentence someone for engaging in family violence conduct. Prosecutions for family violence offences are made in state and territory criminal courts
Order compensation for harm caused by family violence. Compensation may be available under a Victims of Crime Compensations Scheme, or under an order from a state or territory civil court
Make a family violence order to protect someone from family violence, or alter existing orders made by state or territory courts to protect someone from family violence. Orders for protection against family violence are made or amended by state or territory courts.

Pets And Property Settlement

Another change is that in relation to companion animals in family law property settlements.

If parties are unable to agree on what happens to their pets on separation, then the parties can apply to the courts to make an order.

In making an order family law courts must consider the following:

Any animal abuse, including threatening behaviour as a form of family violence
The attachment of each party, or children of the relationship to the family pets

The courts can only make certain types of orders and cannot order joint ownership or arrangements for sharing possession.

Duty Of Financial Disclosure

Both parties in a property settlement have a duty of disclosure. Previously this duty was under the Federal Circuit and Family Court of Australia (Family Law) rules but is now present in the Family Law Act 1975. The duty remains the same.

This duty applies to all disputes about finances and property that arise following separation and is an ongoing duty throughout the proceedings.

If the duty is not upheld by both parties, family courts may:

Take non-compliance into account in a property settlement
Impose sanctions, such as costs orders
Punish a party for contempt of court with a fine or imprisonment
Defer or dismiss all or part of the proceedings

When do the changes come into effect?

As from the 10 June 2025, the changes will apply to all new and existing proceedings except where a final hearing has commenced.

How can I understand how these changes specifically affect me?

If you need further advice in relation to any new or ongoing property settlements, we are happy to assist.

We invite you to contact our Family Law team today on (07) 5532 3199 for practical advice and information on how these changes affect you.