Family Law Shake-Up: Major Reforms Recognise Economic Abuse, Expand Property and Pet Provisions
Sweeping changes to Australia’s family law system came into effect on 10 June 2025, with the Family Law Amendment Act introducing an expansive definition of family violence and overhauling the way courts approach property settlements, spousal maintenance, and even the fate of family pets.
Economic Abuse Now Explicitly Recognised
In a landmark shift, economic and financial abuse is now clearly defined as a form of family violence under section 4AB of the Family Law Act. The amendment moves prior examples of economic abuse into a dedicated section, expands the definition of denying financial autonomy, and formally recognises dowry abuse—an issue long overlooked in Australian law.
Property Settlements: A Clearer Framework
The Amendment Act codifies well-established principles from case law into legislation, clarifying the court’s approach to dividing property after a separation.
Crucially, the court must first determine whether making a property order is “just and equitable”—a threshold that now explicitly guides the entire decision-making process. The steps include:
- Identifying each party’s legal and equitable interests in property and liabilities, including their contributions over the relationship.
- Determining percentage entitlements based on those contributions.
- Considering current and future circumstances, including new factors introduced by the Act.
- Making a final property division—either through specific asset allocation or financial adjustment.
While this sequence offers a general guide, courts maintain flexibility in how they apply it to individual cases.
New Factors in Property Decisions
The Act introduces family violence as a formal consideration in evaluating contributions. Judges may now assess how violence affected a party’s ability to contribute financially or otherwise.
In assessing current and future circumstances, courts must now also consider:
- The economic impact of family violence.
- Wastage of assets due to reckless or intentional conduct.
- The nature and impact of liabilities.
- The need for a party to provide appropriate housing for a child.
These additions give courts a broader lens to ensure equitable outcomes in complex family dynamics.
Spousal Maintenance and Family Violence
The reforms also incorporate family violence as a factor in determining spousal maintenance. Courts can now assess how abuse has affected a party’s financial independence and needs.
Pets Get Special Treatment
In a move reflecting evolving societal values, the Act introduces a new legal category for companion animals, distinguishing them from other property.
While pets remain legally classified as property, courts can now make interim and final orders specific to companion animals, including sole ownership transfers or sales. However, shared custody is off the table—the Act prohibits orders for joint care arrangements.
The law defines a companion animal as one primarily kept for companionship, excluding animals used for commercial, agricultural or research purposes. The court must consider:
- Any history of abuse or threats against the animal.
- The emotional attachment of either party or children.
- Each party’s capacity to care for the animal going forward.
Tougher Rules on Financial Disclosure
Finally, the Act strengthens transparency in financial matters by elevating the duty of disclosure into the Family Law Act itself. This duty applies from the early stages of a dispute after seperation and continues until the matter is resolved.
Lawyers and family dispute resolution practitioners must now actively inform clients of their obligations—and the serious consequences of non-compliance, which include:
- Contempt of court penalties
- Costs orders
- The court factoring non-disclosure into final decisions
Less Formality in Court Proceedings
Finally, the family law courts will have the discretion to use a less adversarial approach in property and financial matters, to enhance their ability to direct proceedings and manage evidence particularly where there may be family violence.
These reforms represent the most significant update to family law in years, with a strong focus on fairness, transparency, and the real-world effects of abuse and inequality in relationships.prise agreement have no effect and cannot be enforced after 7 December 2022. This applies regardless of whether the instrument was made before, on, or after this date.
It will be interesting to see how employees respond to this new right particularly when it comes to bonus time and annual salary reviews this year.
