Understanding the Next Major Reform in Family Law

Significant updates were made to the Family Law Act 1975 (Cth) over the past year, particularly in relation to parenting matters. But more changes are on the horizon—this time concerning property and financial matters—and they’re set to take effect from 10 June 2025.

What’s Changing?

The upcoming amendments primarily relate to property settlements and financial disputes, with key reforms including:

Greater legislative recognition of family violence, especially economic and financial abuse;

Clearer guidance for how property settlements are determined;

New provisions around pet ownership after a relationship ends;

Elevated disclosure obligations, moving them from Court rules into the legislation itself.

Below is a brief summary of the key changes.

Family Violence and Property Matters

These reforms ensure that the impact of family violence is directly addressed in property proceedings.

Notably:

Economic and financial abuse will be explicitly recognised as a form of family violence;

Courts will be required to consider the effect of family violence on a party’s ability to contribute to the relationship;

The ongoing impact of family violence on a person’s future financial needs must also be taken into account.

This update formalises how family violence is assessed during property disputes and reinforces the importance of recognising its long-term consequences.

The Property Settlement Process

Property matters will continue to follow a staged assessment process. However, the new laws will codify this framework, making it more transparent. The process involves:

Determining if it is just and equitable to alter the parties’ property interests;

Identifying and valuing each party’s assets, liabilities, and financial resources;

Assessing the parties’ contributions, including how family violence may have affected them;

Evaluating future needs, including any financial repercussions of family violence or wasteful use of resources;

Ensuring the final division is fair and reasonable.

The aim is to simplify the legal steps while providing greater certainty and clarity for everyone involved.

Pets and Property Settlements

At present, pets are treated as property. The new laws introduce a specific framework for “companion animals”, recognising the emotional importance of pets in many relationships.

Under the new approach, the Court can make decisions about:

Who retains ownership of the animal;

Whether the pet should be transferred to the other party;
Or, in some circumstances, whether the pet should be sold.

This change acknowledges that pets are more than just property—they’re often considered part of the family.

Why Are These Changes Being Made?

The amendments are designed to:

Improve clarity in property settlements;

Ensure family violence is appropriately considered;

Streamline the process for legal practitioners and parties;

Support more just and equitable outcomes.

This shift reflects a broader move toward a simplified, more accessible family law system, focused on the needs of separating families and those experiencing family violence.

When Do These Changes Apply?

The amendments will apply from 10 June 2025, and will affect:

Any matters still before the Court and not resolved by a final hearing before this date; and
Any new matters commenced on or after 10 June 2025.

It’s important for separating couples and their legal advisors to understand how these changes could affect their financial arrangements moving forward.

Need Help Understanding the Changes?

At O’Loan Family Law, we help clients navigate separation and property matters with confidence, clarity, and care. If you’re unsure how these reforms may affect your situation, we’re here to help.

About The Author - Bron O'Loan

Bron O’Loan is an Accredited Specialist in Family Law and Principal Director of O’Loan Family Law in Sydney. Admitted to practise in 2015, she has over 12 years of exclusive family law experience advising on separation, parenting disputes and complex property settlements. Bron holds a Master of Applied Law (Family Law) and is admitted to the Supreme Court of NSW and the High Court of Australia, providing strategic, commercially aware advice tailored to each family’s circumstances.

*This post is an overview only and should not be considered as legal advice. If there are any matters that you would like us to advise you on, then please contact us.

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