The Family Court will be required to factor in the economic effect of any family violence when determining a property settlement between separating couples, writes Family Law Associate Breanna Farrell.
From 10 June 2025, the Family Court will be required to consider any history of family violence when determining how property should be divided in property settlement proceedings following a relationship breakdown.
Settlements are set to experience a shakeup, with perpetrators of family violence no longer able to avoid accountability for the financial and emotional harm they caused during the relationship.
Under amendments to the Family Law Act 1975, judges will now take into account the economic impact of family violence – including controlling or coercive behaviours – when assessing the overall property and financial contributions made during the relationship.
The focus on family and domestic violence follows a raft of significant changes to Australia’s family law system under the Family Law Amendment Act 2023.
The changes apply to all new and existing proceedings that have not yet had a final hearing. Separating couples should seek legal advice about how the changes may impact them.
Understanding the family law reforms
Not all separating couples head to the family law courts to settle their property disputes. Most find a resolution through negotiation, mediation or other out-of-court processes.
However, for those who cannot agree on what happens to their property or finances, even after extensive mediation and negotiations, the Family Court can decide for them.
Currently, the family law courts (and couples negotiating outside court) must:
- Identify all property each person owns,
- Identify any debts of the parties,
- Assess each party’s contributions to the property pool, and to the welfare of the family (how each person supported the family or took care of the children),
- Assess each party’s current and future circumstances (factoring in things like the health and age of each party, and the care and housing needs of any children), and
- Make orders that are just and equitable.
Until now, the court has only considered the impact of family violence on a party’s contribution if that party could demonstrate it was relevant.
Going forward, that consideration will now be a mandatory part of a judge’s determination of property and finances. The reforms ensure, for the first time, that family and domestic violence must be taken into consideration in property settlements for separating families.
This change recognises that family violence can significantly affect a person’s ability to contribute financially or care for children. It brings family law in line with broader social and legal efforts to acknowledge and address the full impact of abuse.
The court will assess whether family violence impacted a person’s contributions to the property pool and to the welfare of the family (for example, if they were not allowed to work and earn money and, therefore, unable to pay for property).
The existence of family violence will also be relevant for assessing a party’s current and future circumstances (for example, if they have ongoing costs for counselling or rehabilitation).
The amendments also:
- Ensure the care and housing needs of children are considered when making property and financial decisions,
- Introduce a duty requiring early and transparent disclosure of financial information to support the faster and fairer resolution of disputes,
- Broaden the use of less confrontational processes across all types of family law proceedings, aiming to reduce stress for those involved, and
- Establish a regulatory framework for Children’s Contact Services to ensure children have access to safe, child-centred support when families cannot manage contact arrangements privately.
The new duty of financial disclosure requires a separating couple to share information about their property (including their money) with each other and the family courts. The family courts have also been given powers to step in if someone doesn’t follow the rules.
Such enforcement action could include considering non-disclosure when determining a property settlement, ordering the non-complying party to pay legal costs, issuing penalties (including fines or even jail time for contempt of court), or deferring or even throwing out parts of the case.
Increased focus on financial abuse
Domestic and family violence not only refers to physical violence but also economic or financial abuse. This can include where a person unreasonably controls their partner’s finances or spending, sabotages their employment or income, or coerces them into taking on debts in their name.
Financial abuse is one of the more hidden forms of domestic and family violence. It often starts subtly and escalates over time, stripping individuals of their financial autonomy and control.
By formally recognising the financial impact of abuse in property matters, the new laws aim to help survivors achieve more equitable outcomes and rebuild their financial independence.
Every May, Domestic and Family Violence Prevention Month prompts us to have vital conversations and foster community-wide awareness of the social and personal impacts of domestic violence.
In recent years, there’s been a growing recognition of the many forms that family violence can take – including financial abuse and coercive control. They have become a focus of legal and political reform, particularly in response to a sharp increase in domestic violence-related deaths and more women coming forward to tell their stories of being controlled by an ex-partner.
For example, in 2024, a parliamentary inquiry was set up to examine the role that banks are playing in preventing financial abuse.
Also in 2024, NSW criminalised coercive control under the Crimes Legislation Amendment (Coercive Control) Act 2022 and Queensland did the same under the Criminal Law (Coercive Control and Affirmative Consent) and Other Legislation Amendment Bill 2023.
The recognition of family violence in property proceedings is another concrete step forward – and just one part of the broader response needed from the legal system, community and government.
Attwood Marshall Lawyers – helping families during difficult times
Attwood Marshall Lawyers has a dedicated team of family lawyers who practice exclusively in this complex and highly emotional area of law. Our team is experienced in helping people navigate separation and divorce, negotiate property settlements and financial agreements, and support people facing domestic and family violence.
If you are experiencing domestic and family violence, including financial abuse, help and support is available.
If you are in immediate danger, please call 000. The police can immediately attend to you and issue paperwork on the spot to protect you from the perpetrator, including issuing a temporary protection order if necessary.
There are also several hard-working support services available to help women and children leave an unsafe home, and support services for men and perpetrators of violence who want to change their behaviour.
Here are some trusted support services:
- 1800RESPECT (1800 737 732): confidential information, counselling, and support service.
- DV Connect (1800 811 811): a state-wide hotline offering free, professional assistance such as counselling, intervention, transport and emergency accommodation.
- DV Connect Mensline (1800 600 636)
- No to Violence Men’s Referral Service (1300 766 491)
- Lifeline (13 11 14) for crisis support
- Be There app, a bystander empowerment tool that provides information and resources.
If you need help with making an application for a DVO or other issues related to leaving a violent relationship, our compassionate and experienced family lawyers can help you navigate the legal system and apply for the necessary orders.
For more information or a confidential discussion with our family law team, please contact our Family Law Department Manager, Donna Tolley on direct line 07 5506 8241, email dtolley@attwoodmarshall.com.au or free call our 24/7 hotline any time on 1800 621 071.
