Changes in Family Property Settlements from June 2025

Alexandra Vrdoljak

• Wage Theft a Criminal Offence: What Employers and Employees Need to Know About the New Laws
• Does the 'right to disconnect' apply to me?
• I’m an employee, aren’t I?
• Changes to Family Law

Melissa Mazzeo

• I’m an employee, aren’t I?

Changes to the Family Law Act 1975 (the Act) will be effective from 10 June 2025 that substantially amend the process for property settlements in family law matters.  These amendments will apply to new and existing proceedings unless a final hearing in a current matter has commenced.

The key changes include redefined court considerations through a four-step rule, how the Court deals with family pets, and consideration of family violence in property settlements.

The Four Considerations

The new amendments codify the four-step rule where the Federal Circuit and Family Court of Australia (the Court) must consider four factors for determining how parties to a relationship should resolve their property disputes. The four steps the Court takes consist of:

1. Identify the assets and relationships of the relationship;
2. Consider the contributions made by each party towards the accumulation of the parties’ assets and liabilities overall and whether any adjustments should be made to the assets and liabilities based on the parties’ individual contributions;
3. The future needs of each of the parties and whether it is just and equitable for the Court to adjust the property pool. This may include the age, health and needs of any children in the parties’ care; and
4. The overall percentage split of the property pool and whether it is just and equitable.

Family Pets

A new definition for a ‘companion animal’ is now established under the Act and is treated separately from the property pool. A companion animal is now defined as an animal that is kept primarily for companionship and does not include an animal for assistance, business or agricultural purposes.

The Court can make orders in relation to companion animals, including one party to have the sole ownership of the companion animal, that the companion animal be transferred to another person, or that the companion animal is to be sold. However, the Court cannot make an order for shared ownership or care for the companion animal between the parties. A shared ownership or care arrangement can be agreed privately between parties outside of the Court.

Family Violence

The Court is now required to consider how any existence of family violence impacted the contributions of a party and its economic effect when relevant. The Court may adjust the property percentage split or order spousal maintenance be paid between the parties if there has been family violence which has impacted an exposed parties’ current and future circumstances. This may also include where one party intentionally or recklessly caused a material wastage of financial resources or property.

If you wish for Scanlan Carroll to provide advice on how the new amendments may affect you, please contact our office and our team will be happy to assist.