WGC LAWYERS | Family Law Reform: Key Changes from 10 June 2025 

Family Law Reform: Key Changes from 10 June 2025 

Significant amendments to the Family Law Act will take effect from 10 June 2025. The changes aim to make the family law system simpler, safer and fairer for all Australian families. Whether you’re going through a separation or just looking to stay informed, it’s important to understand these changes.  

Property Settlement Framework 

 

A property settlement framework that was previously based on case law has been codified in the Family Law Act to make the Court’s decision-making principles more accessible to everyday users.  The changes clarify what the Court must do when determining a property settlement application following the breakdown of a relationship. The framework is also a useful guide for resolving property disputes outside the court system. 

 

The Court must determine whether it is just and equitable to adjust the parties’ property interests, which involves identifying each party’s legal and equitable interests and liabilities, assessing their contributions to the relationship, considering their current and future circumstances (formerly known as ‘future needs’ factors), and ultimately deciding on a fair percentage split and allocating property and liabilities accordingly. 

Contributions 

There are various factors that the Court currently considers when assessing contributions to a relationship, such as financial and non-financial contributions and contributions to the welfare of the family. The amendments expressly provide that, where relevant, the Court is to consider the effect of family violence on the ability of a party to make contributions to the relationship.  

Current and future circumstances 

There are various factors the Court currently considers when assessing the current and future circumstances of the parties.  The amendments expressly provide that the Court must now also consider the following: 

• Family violence:  the effect of family violence on a party’s current and future circumstances.  

• Wastage: where a party intentionally or recklessly caused any material wastage of property or financial resources of either of the parties to the relationship. 

• Liabilities:  the nature of liabilities incurred by parties, the circumstances relating to the liabilities and the impact of those liabilities on the financial future of the parties. 

• Children’s housing needs:  the need of either party to provide appropriate housing for a child. 

Spousal maintenance 

The amendments also add family violence into the list of factors that the Court can consider when assessing what order (if any) may be appropriate for spousal maintenance.  

Family Violence 

The amendments expand the existing definition of family violence by including examples of conduct that may constitute economic or financial abuse such as the following: 

• Forcibly controlling a family member’s money or assets;  

• Sabotaging a partner’s employment or income; 

• Accumulating debt in a family member’s name without consent; 

• Unreasonably withholding financial support needed to meet reasonable living expenses; 

• Making demands for further, and/or excessive, dowry payments. 

The amendments enable a wider range of coercive and controlling financial behaviours to be recognised as family violence.  

Importantly, the amendments do not imply that family violence alone will automatically justify a change in property settlement entitlements. Rather, the focus is on the consequences of the family violence, including the impact on a party’s contributions to the relationship and the ongoing effect on their financial and personal circumstances post-separation. 

Duty of disclosure in property and financial matters 

The amendments clarify and promote compliance with financial disclosure duties by inserting a specific duty of disclosure into the Family Law Act. The duty of disclosure applies from an early stage where a party is preparing for proceedings and continues to apply throughout the proceedings until the matter is resolved. 

Consequences of non-compliance with the duty of disclosure can be significant and include: 

• punishment for contempt of Court with a fine or imprisonment; 

• costs orders against a party; 

• the Court considering non-compliance when determining what orders to make in a property settlement; 

• re-opening settlements if non-disclosed assets are subsequently discovered.  

Please note, this article does not detail all of the legislative changes. If you are experiencing a separation, we encourage you to contact the family law team at WGC Lawyers for guidance on how the upcoming changes to the Family Law Act could impact you.