How the Family Law Reform 2025 Impacts Property Settlements
By Holly Pitt, Senior Solicitor
Rafton Family Lawyers Penrith Richmond Macarthur Narellan Parramatta Glenmore Park
On 10 December 2024, the Family Law Amendment Bill 2024 was passed through both Houses of Federal Parliament and received Royal Assent. Whilst some changes have taken effect immediately, the first substantive group of amendments take effect from 10 June 2025.
These legislative changes are poised to reshape the way family law matters, particularly property settlements, are handled across Australia. Whether you’re navigating a separation, divorce, or a dispute over property, these updates could have significant implications for you. Here’s what you need to know.
Key Changes to Property Settlements
A standout aspect of the Family Law Amendment Bill 2024 is the introduction of a clearer, more structured process for determining property settlements. Previously, property divisions relied heavily on a mix of case law and legislation. The new law codifies some changes to the process, ensuring that courts follow a transparent, step-by-step approach to dividing assets.
Now, courts will consider:
- The ownership of assets and debts, ensuring that each party’s financial contributions are accounted for.
- Contributions to the relationship, including both financial and non-financial contributions (such as homemaking or child-rearing).
- Future financial needs, particularly if one party has lower earning potential or greater caring responsibilities.
- Fairness, making sure that the outcome is just and equitable for both parties.
This structured approach aims to increase predictability and fairness, reducing the room for ambiguity in property divisions.
Family Violence and Financial Impact
One of the most crucial changes in this amendment is how the court addresses the financial impact of family violence. The new law explicitly recognises that family violence, including economic and financial abuse, can have a profound effect on a party’s financial position. This includes cases where one party has been prevented from accessing funds, forced into debt, or prevented from pursuing career opportunities.
If you have experienced financial abuse or been significantly impacted by family violence, the courts will now take this into account when determining property settlements. To ensure the best outcome, it’s important to gather and present evidence of how family violence has affected your financial situation.
Prioritising Children’s Housing Needs
The law also recognises that children’s housing needs must be prioritised in property settlements. In cases where one parent has primary care of the children, the courts may favour ensuring that the children’s housing needs are met by granting the family home or ensuring sufficient funds for suitable accommodation. This shift places the well-being of children at the heart of financial decisions in family law matters.
Other Significant Updates
Several other reforms introduced by the Family Law Amendment Bill 2024 will affect family law processes and outcomes:
- Less Adversarial Process: The new legislation encourages less confrontational, more cooperative approaches to resolving disputes, making proceedings less stressful for families.
- Clearer Disclosure Rules: There will be stronger requirements for parties to disclose financial information accurately and comprehensively. This transparency ensures that all assets and liabilities are accounted for, helping to avoid disputes or surprises later in the process.
- Fairer Superannuation Valuations: The law introduces more accurate methods for valuing superannuation to ensure that property settlements are fair and equitable.
- Privacy Protections: Sensitive documents related to family violence, such as medical or counselling records, will now receive additional protections to prevent misuse in legal proceedings.
What You Can Do Now
As these new laws take effect, it’s important to take proactive steps to protect your interests:
- Prepare your financial documents: Make sure you have accurate records, such as bank statements, property valuations, and income details, ready for your case.
- Document any family violence: If you have experienced financial abuse, start collecting evidence of its impact on your financial situation.
- Seek expert advice: Consulting an experienced family lawyer can help you understand how the changes apply to your case and guide you through the process.
The experienced team at Rafton Family Lawyers is here to help you navigate these updates and secure the best possible outcome for your situation. Schedule an appointment with us today to get expert legal advice on how the new family law reforms apply to you.