The Family Law Amendment Act 2024 started operating on 10 June 2025. It made a lot of changes to provisions affecting family law property settlements. Married couples and people in a de facto relationship in NSW should understand the current framework governing financial matters.
Key takeaways
How the Family Law Act changed on 10 June 2025
The Federal Circuit and Family Court of Australia (FCFCOA) has reformed how it makes decisions related to financial or property orders. Here’s a rundown of some of the significant changes. The Attorney-General’s Department’s fact sheet has the details on the amendment.
Amended property framework
The FCFCOA must be satisfied that any order adjusting property interests is just and equitable. This threshold question runs through every step in the proceedings. The codified four-step process is as follows:
Identify the parties’ property, liabilities and financial resources (the property pool).
Assess each party’s contributions, including financial, non-financial, homemaking and parenting contributions.
Assess each party’s current and future circumstances. This may result in an adjustment of the pool.
Consider whether the proposed division is fair in all the circumstances.
Determining contributions and current and future circumstances
The FCFCOA has refined its approach to assessing contributions and current and future circumstances.
Family violence has been added to the list of factors the Court may consider. The Court can look at how such conduct affected a party’s ability to make either financial contributions or non-financial contributions.
New factors have been added to the assessment of current and future circumstances, including:
A broader consideration of the economic effects of family violence.
The impact of the wastage of financial resources or other assets.
The nature and effect of any liabilities incurred by one of the parties.
The need for either party to provide appropriate housing for a child under 18 years old.
Companion animals
Any animal that is kept primarily for companionship is considered a companion animal. There is a new framework for dealing with these pets in family law cases. The amendment codifies various factors when considering what to do with family pets, including:
Actual or threatened abuse of the animal.
The attachment of each party and any children to the animal.
The capacity of each party to care for the animal.
Spousal maintenance
Family violence is now an explicit provision in the Family Law Act when considering the need for spousal maintenance orders. The Court can look at any relevant economic consequences that may contribute to the need for financial support.
Duty of disclosure in financial proceedings
Separating couples must disclose their financial position before dividing their assets. Financial disclosure is now part of the Family Law Act, rather than the family law rules. There may be serious consequences for non-compliance, such as:
An order to pay the other party’s legal costs.
Potential adjustments in a proposed settlement.
Contempt of court proceedings in serious cases.
The amendment also requires legal practitioners to inform clients of their disclosure obligations.
Why it matters one year on
Since the amendment came into effect, the legal provisions in this area have become clearer. Here are some factors parties are keeping in mind:
Family violence is an explicit consideration in financial proceedings. Documentation about incidents may be important for legal preparation.
Disclosure obligations are stricter. Compliance often includes producing information on bank accounts and financial statements about the family home and other significant assets. It may also be important to disclose liabilities, such as personal loans.
The codified four-step process is now in the Family Law Act. The Court’s approach is clearer when considering whether a division of assets is fair and equitable.
Family dispute resolution may help some separating couples reach an agreement without going to court.
Paying attention to compliance is more important than ever. For example, obtaining independent legal advice is required for a binding financial agreement to be enforceable.
Conclusion
Family Law Act amendments made important changes to how the Court handles finances after separation. The reforms affect spouses and de facto partners. Parties dividing their finances after a relationship breakdown should know about the updated frameworks.
Are you seeking legal advice in Revesby, NSW?
Bateys Law Firm may assist with a range of family law matters. Contact us for a free, confidential initial chat about your situation.
If you’re experiencing family violence, support services are available:
1800RESPECT: 1800 737 732
Lifeline: 13 11 14
NSW Domestic Violence Line: 1800 656 463
In an emergency, contact 000.
Disclaimer: This article provides general information only. It is not legal advice. Family law outcomes depend on your circumstances. You should speak with a family lawyer before making decisions about your matter.
