Author: Carol Pages, Pages Family Law.

There are some important changes to the law relating to family law property settlements after separation.  One of the most important updates is the formal recognition of family violence as a relevant factor in the property settlement process.

How does property settlement work now?

Under Australian family law, a property settlement involves the identification and valuation of all assets and liabilities of both parties.  These include both jointly and individually owned assets.

The next step is to assess the contributions of both parties. The contributions include financial contributions such as income, and non-financial contributions such as parenting and homemaking. 

The contributions are generally assessed as a percentage amount.

The next step is to assess the future needs of the parties, which may lead to adjustments. Relevant factors include:

• ● differences in income and earning capacity, 
• ● the care of children,
• ● health issues,
• ● other circumstances impacting a party’s future financial position.  

You can learn more about the current process in our article Family law property division – How does it work? | Family Law.

What are the changes to Family Law property divisions?

A major change to property settlement laws is the mandatory consideration of family violence.

It has been possible for some time to argue in family law property disputes, usually in a final hearing, that one party’s contribution was negatively impacted by the other party’s family violence towards them. The difference now is that this is embedded in the Family Law Act, and must be considered in every property division matter, including those that do not go to Court.

This means that during property division after separation, the assessment of contributions must now consider the impact of any family violence by one party to the relationship on the ability of the other party to make contributions.  

For example, if a person’s ability to contribute was affected by family violence, including economic or financial abuse, this must now be factored into the settlement.

The effect of family violence on the current and future circumstances of a party will also be taken into account.

These changes apply to both de facto property settlements and divorce property settlements. 

When do the changes begin?

This new law comes into effect on 10 June 2025.

What should I do?

If you have separated and you would like advice about your property settlement in Australia, it is important to:

• ● let your lawyer know if family violence occurred during your relationship
• ● discuss whether the new laws will affect your financial settlement
• ● seek legal advice early about the updates to family law property division and what it means for you.

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The content of this article is provided for information purposes only and does not constitute legal advice. We recommend that you seek legal advice relevant to your own circumstances and we would be happy to assist you.

Carol Pages is the Principal of Pages Family Law and an Accredited Specialist in Family Law and a Nationally Accredited Mediator. If you would like advice about your own separation, please contact Pages Family Law at info@pagesfamilylaw.com.au or on 03 9121 8077 or book a 15 minute free discovery call via our website.