Family Violence in Property Settlements: New Changes from 11 June 2025

Family Law: 01 April 2025

Author: Krystel Ong - Our People

When a relationship breaks down, the financial aftermath can be just as complex as the emotional one. For those who have experienced family violence, the impact can be long-lasting — particularly when it comes to dividing property.

On 11 June 2025, significant amendments to the Family Law Act 1975 (Cth) (“the Act”) will come into force following the passage of the Family Law Amendment Act 2024.

These reforms introduce important changes to the way in which courts are required to consider family violence—particularly its economic consequences—when determining property settlements between separated parties.

For the first time, the Act will explicitly mandate that courts assess the impact of family violence on a party’s capacity to contribute to the relationship and on their current and future circumstances. These changes codify principles previously derived from case law and provide a clearer legislative framework.

Legislative Recognition of the Economic Impact of Family Violence

The amendments build upon the existing definition of family violence in section 4AB of the Act by expanding the examples of conduct that may constitute economic or financial abuse. The updated provision specifically includes behaviours such as:

• Forcibly controlling a partner’s access to or use of their financial resources, including superannuation;
• Sabotaging a person’s employment or income potential;
• Coercing or deceiving a person into assuming financial liabilities or incurring debts in their name;
• Unreasonably withholding financial support necessary for living expenses;
• Dowry-related coercion, including the demand for money or assets under cultural or familial pressure.

This expanded definition is designed to provide greater clarity for courts and parties, ensuring that a broader range of coercive and controlling financial behaviours can be identified as family violence and considered during the division of property.

Property Settlements and the Effects of Family Violence

A central feature of the reforms is the statutory obligation placed on the court to take into account the effect of family violence on both:

• A party’s ability to make contributions during the relationship (now addressed in the new section 79(4)(ca) for married couples and section 90SM(4)(ca) for de facto couples); and
• A party’s current and future circumstances (set out in the new section 79(5)(a) and 90SM(5)(a)).

This development is a formal recognition of the principle derived from Kennon & Kennon (1997) FLC 92-757, where the Full Court held that family violence may be relevant to the assessment of contributions if it made those contributions “significantly more arduous than they ought to have been.”

While the Kennon principle has been available to litigants for some time, its application was discretionary and often subject to judicial interpretation. The statutory amendments can now bring consistency and clarity to this area of law.

Focus on the Effects of Family Violence

It is important to note that the amendments do not suggest that the mere presence of family violence will automatically lead to an adjustment of property interests. Rather, the legislation directs attention to the effect of such violence—both in terms of how it may have affected a party’s contributions to the relationship and how it continues to impact their financial and personal circumstances post-separation.

Where a party has been subject to controlling behaviours that prevented them from pursuing employment, restricted access to joint finances, or resulted in psychological harm, these effects may be relevant in determining a fair and equitable property settlement.

The legislation also highlights the relevance of these considerations in future needs assessments, supporting the aim of recognising the lasting impacts of family violence.

Implications for Litigants and Practitioners

These amendments are likely to result in increased reliance on family violence allegations in property proceedings, particularly claims based on financial or economic abuse. As such, there may be an uptick in the volume of affidavit material and expert evidence required to support or respond to such claims.

It is anticipated that these reforms will assist parties—especially self-represented litigants—in understanding the relevance of family violence to their property entitlements. The insertion of these provisions into the Act promotes greater accessibility, transparency, and consistency in decision-making.

Nevertheless, legal practitioners will play a critical role in guiding clients through this evolving area of law. It will be essential to frame claims of family violence with a clear evidentiary basis and to establish the causal link between the violence and its impact on contributions or future needs.

Conclusion

The amendments to the Family Law Act 1975 that commence on 11 June 2025 represent a significant evolution in the treatment of family violence within the context of property settlement proceedings.

By codifying the effects of economic and financial abuse as relevant considerations, the legislation acknowledges the real and enduring impact that coercive conduct can have on separating parties.

These changes reflect a broader policy objective to make the law more responsive to the lived experiences of those affected by family violence. As practitioners, it is incumbent upon us to remain familiar with these developments and to ensure that our clients receive well informed advice and representation.

At Aitken Partners, we are committed to providing considered and effective guidance in this complex and sensitive area. If you require advice regarding how these changes may affect your matter, please contact our office to arrange a consultation.