Significant amendments to Australia’s family law system are set to take effect on 10 June 2025, introducing notable property settlement changes following separation. These amendments aim to streamline processes, enhance fairness, clarity, and reduce delays in resolving resolving financial and property matters after separation or divorce.

At Farrell Goode, we understand how crucial it is for our clients to stay informed about legal changes that may impact their financial future. Below, we outline the key updates and what they mean for separating couples.

 

Key Changes to Family Law Property Settlements

1.    Structured Approach to Property Division

The Family Law Amendment Act 2024 establishes a more structured approach for determining property settlements. The process involves:

  • Identification of Assets and Liabilities: Listing all property and debts of both parties.
  • Assessment of Contributions: Evaluating financial and non-financial contributions made before, during, and after the relationship.​
  • Consideration of Current and Future Circumstances: Taking into account factors such as age, health, income, and child care responsibilities.​
  • Ensuring Just and Equitable Outcomes: Making orders that are fair and appropriate given the circumstances.​

2.    Recognition of Family Violence in Property Settlements

For the first time, the economic effects of family violence are explicitly recognised as relevant in property settlements. This includes:

  • Considering how one party’s abusive actions, such as controlling finances or preventing employment, have impacted the other’s financial position.​
  • Addressing economic or financial abuse, including dowry abuse, within the definition of family violence.

3.    Framework for Companion Animals

Acknowledging the emotional significance of pets, the amendments provide a framework for determining the ownership of companion animals in property settlements. Courts are required to consider factors such as:

  • Caregiving: Who primarily cared for and financially supported the pet.
  • Family Violence Considerations: Any history of animal abuse or threats.​
  • Emotional Bonds: The attachment of each party, and any children, to the pet.​

Notably, courts are restricted from ordering joint ownership or shared possession of pets to minimise ongoing conflict.

4.    Enhanced Financial Disclosure Obligations

The reforms elevate financial disclosure obligations, embedding them in legislation i.e. moving them from the Family Law Rules into the Family Law Act, thus making them more enforceable. These key changes:

  • Provide full disclosure of all relevant financial information at the outset of proceedings, reducing delays and disputes.
  • Clarifies that disclosure includes assets, liabilities, income, superannuation, and financial resources, regardless of whether they are in joint or individual names.
  • Allow greater accountability through penalties, adverse costs orders, or property settlement adjustments for failing to disclose financial information or attempting to hide assets

The enhanced obligations aim to:

  • Ensure that both parties provide comprehensive and accurate financial information.
  • Improve transparency and compliance in property settlements.​
  • Highlight the ongoing nature of this duty throughout the resolution process. ​

5.    New Considerations for Liabilities and Asset Wastage

The Family Law Amendment Act 2024 introduces clearer rules for addressing liabilities and asset wastage in property settlements. Reckless financial behaviour or coercive debt practices may now influence asset division if proven to significantly impact the financial position of the other party.

  • Recognition of Liabilities: Courts must identify and assess all liabilities, like loans and credit debts, in property settlements.
  • Clarification of Wastage: Reckless losses, such as gambling or fraud, can influence asset division.
  • Consideration of Financial Abuse: Coercing a party into debt or restricting financial autonomy may lead to adjustments in the settlement.
  • Stronger Protections for Debt Disputes: Courts will assess if liabilities were incurred for the joint benefit or solely by one party.

6.    Expanded Arbitration and Cooperative Approaches

The Family Law Amendment Act 2024 encourages alternative dispute resolution, expanding arbitration and introducing less adversarial processes to resolve property and financial disputes efficiently.

  • Broader Arbitration Use – Courts can now refer more financial and property matters to arbitration, promoting faster, cost-effective resolutions.
  • Less Adversarial Trials (LAT) – The LAT framework, previously limited to parenting matters, now applies to property cases, fostering flexibility and cooperation.
  • Increased Judicial Flexibility – Judges have greater discretion to simplify hearings and proactively manage cases.
  • Early Settlement Focus – Parties are encouraged to resolve disputes outside of court, reducing litigation stress and expenses.

 

Implications for Separating Couples in New South Wales

These changes apply to all separating couples in New South Wales, whether their property settlement is determined by the courts or negotiated outside of court. It’s important to note that:​

  • Existing financial or property orders will remain unchanged.​
  • The new laws will apply to new and existing proceedings, except where a final hearing has commenced before 10 June 2025. ​

 

Seeking Legal Advice

Given the complexity and potential impact of these changes, it’s advisable for individuals undergoing separation to seek legal advice tailored to their specific circumstances. Legal professionals can provide guidance on how these reforms may affect property settlements and assist in navigating the updated legal framework.​

The amendments to the Family Law Act 1975, effective from 10 June 2025, represent a significant shift in how property settlements are approached in New South Wales.

What Do These Changes Mean for You?

If you are going through a separation or divorce, these changes may impact how your property settlement is handled. By understanding these changes, separating couples can better navigate the property settlement process and work towards fair and equitable outcomes.​

Key takeaways:

✔ Act promptly – Delays in filing or disclosure could harm your case.
✔ Seek early legal advice – Understanding your rights and obligations is crucial.
✔ Consider mediation – Resolving disputes outside court can save time and costs.

 

How We Can Help

At Farrell Goode, our experienced family lawyers stay up to date with legislative changes to provide you with the best possible advice. Whether you need assistance with negotiation, mediation, or court proceedings, we are here to guide you through every step.

Contact us today to discuss how these changes may affect your property settlement and how we can help protect your interests.