On 29 November 2024 the Family Law Amendment Bill 2024 [the ‘Bill’] passed through the Australian Senate. The amendments commence on 29 May 2025. For those navigating a separation or divorce, or contemplating one, these changes could substantially impact how your case is managed and the information that will be considered by the court system.
Amongst the key changes are:
- Clarification of property settlement decision-making framework
- Acknowledgment of the financial consequences of family violence
- Consideration of children’s housing needs in property settlements
These changes give rise to a major shift in how property settlements will be handled in family law matters.
Property Settlement Decision-Making Framework
The Bill introduces a codified, step-by-step process that Courts must follow when determining property settlements. This change aims to make the process more transparent and consistent for the parties who must navigate the system, addressing the current situation where decisions were primarily based on case law and judicial discretion, often leading to inconsistencies and confusion.
Under the new legislation, Courts must:
- Identify legal and equitable interests in property and existing liabilities.
- Consider the contributions of both parties.
- Evaluate each party’s current and future circumstances; and
- Ensure the final order is just and equitable.
Codification will make the process more predictable and easier to understand. As a result, you’ll have a clearer idea of what factors the Court will consider and how they’ll reach their decision. This clarity should help you better prepare your case and reduce legal costs by focusing on the most relevant information that must be provided.
The Bill also formalises the definitions of liabilities and wastage (for example gambling or unreasonable spending), offering clearer direction for Courts when evaluating contributions. This change should lead to more consistent and fair outcomes in property settlements.
Financial Consequences of Family Violence
One of the biggest changes that will be brought about by the amendments is the explicit recognition of the economic impact of family violence in property settlements. Previously, although family violence was considered in parenting matters, its financial consequences were not consistently applied in property divisions. The amendments require the Courts to consider these impacts, ensuring that if you’ve experienced family violence that affected your finances—such as being unable to work or incurring debt—the Court will be obligated to take this into account when assessing a property division.
The Bill also expands the definition of family violence to include economic and financial abuse, potentially leading to fairer settlements for victims who face long-term economic disadvantages. It also includes provisions to protect victims from further harm by restricting the disclosure of sensitive information and encouraging them to seek necessary support, without fear of it being used against them in Court.
While we won’t know specifically how the Courts will address family violence in their decisions for some time, we do know that it is important when preparing your case that detailed evidence is provided. Not only the family violence that occurred but also evidence of the impact of that abuse.
Children’s Housing Needs in Property Settlements
The Bill requires Courts to consider children’s housing needs during property settlements. While children’s best interests were always paramount in parenting matters, their specific housing needs have not previously been explicitly mentioned as a consideration in property settlements. This change could lead to outcomes that prioritise stable housing for children, such as allowing the primary caregiver to retain the family home or ensuring sufficient funds are available for suitable housing.
Other Significant Changes
Several other changes in the Bill are also worth noting:
- Expansion of Less Adversarial Approach: The Bill extends the Less Adversarial Trial approach to property and financial matters, giving Courts more flexibility to actively manage and control proceedings. This could make property settlement proceedings less confrontational and more efficient.
- Enhanced Disclosure Requirements: The Bill strengthens and clarifies disclosure obligations regarding financial information, which should lead to more transparent and fair settlements.
- Improved Valuation of Superannuation: The Bill introduces a new mechanism for reviewing and updating the methods used to value superannuation interests in family law property settlements, ensuring more accurate valuations of these often-significant assets.
- Protected Confidences: The Bill introduces safeguards against the disclosure of ‘protected confidences’ in family law proceedings, aiming to protect sensitive information such as medical or counselling records.
Navigating the Implications of the New Bill on Property Settlements
Given that these changes will commence on 29 May 2025, here are some practical steps to consider in your matter now:
- Comprehensive financial disclosure: Be prepared to promptly provide full financial information to your solicitor and to the other party, so you are in a position to comply with the strengthened disclosure obligations. This includes details of assets, liabilities, superannuation, and resources. Incomplete disclosure may lead to penalties or unfavourable Court outcomes, so compile relevant documents like bank statements, tax returns, and property valuations.
- Document Family Violence: If you’ve experienced family violence, particularly economic abuse, document it thoroughly. The Bill explicitly recognises the economic impact of such abuse, making evidence crucial for your property settlement. Keep records of incidents, financial transactions, police reports, and any correspondence demonstrating control over your finances.
- Seek Professional Advice: Given the complexity of the changes, consult a qualified Family Lawyer familiar with the new legislation. An experienced lawyer, such as ours can help you navigate the new framework, ensure compliance with disclosure requirements, and advocate for your interests.
- Explore Alternative Dispute Resolution: With an emphasis on less adversarial methods, consider whether mediation, collaborative law, or arbitration may be suitable for your situation. These approaches can often be quicker, less costly, and less stressful than traditional Court proceedings.
- Stay Informed: As these changes are implemented, keep updated on how they are being applied in practice. Court decisions may provide insights into their interpretation, so your lawyer can be an invaluable source for updates. Also consider following legal news or attending informational seminars.
Conclusion
The Family Law Amendment Bill 2024 represents a significant shift in how Family Law cases are managed in Australia. By clarifying the decision-making process and recognising the economic impacts of family violence, the Bill introduces essential considerations like children’s housing needs and pet ownership. These changes aim to create fairer and more transparent outcomes for families navigating separation and property division.
It’s essential to remember that each family law case is unique, and the specific outcomes will depend on your circumstances. Seek legal advice from our expert Family Lawyers at Delaney & Delaney to receive the guidance you need to navigate these changes effectively. Our experienced team is committed to advocating for your rights and helping you understand how the new legislation may impact your situation. With integrity and excellence, we will ensure you achieve a more equitable property settlement tailored to your needs.
Make an appointment today.