Family Property Settlements: The Law Has Changed (Effective June 2025)
Significant changes to The Family Law Act (“the Act”) come into effect on 10 June 2025, impacting how property settlements are handled after separation.
These changes impact all separating couples, whether they settle their matters in court or come to an agreement outside of it, especially concerning how property settlements are handled, how pets are treated and the role of family violence in settlements.
Companion Animals: More Than Just Property
Previously, pets were treated like any other property, much like furniture or a car. However, the new changes to the Act now recognise the unique role of pets as companions.
Now, the Court can make interim and final orders about pets that qualify as companion animals. This could mean granting sole ownership of a pet to the one person, transferring the pet to another person with their consent, or even selling the pet.
However, the shared ownership or shared care of the pet, similar to a Parenting Order, isn’t an option under these changes. So, what exactly is a companion animal? It’s a pet kept mainly for companionship. This does not include service animals, animals used for business, scientific or agricultural purposes. If a pet is not considered a companion animal, it will be handled like any other property.
When making decisions about companion animals, the court will consider several factors: any history or abuse or threats towards the pet, the emotional attachment of any family family members to the animal, who has cared for the pet in the past and the ability of each person involved to care for the pet moving forward.
New Understanding of Family Violence in Property Settlements
The amendments to the Act have also changed how the financial and economic impacts of family violence are considered during property settlements.
Family and domestic violence is acknowledged as a factor that could affect a person’s ability to make contributions. If one partner was subject to or threatened with violence, and this affected their ability to contribute, the court must now take this into account; it may impact the outcome of the property settlement. These changes highlight a shift towards a more nuanced and compassionate understanding of family dynamics and property settlements.
By considering the economic effect of family violence and the indisputable role our pets play in our lives, the law now provides a framework that better acknowledges the complex realities many families face when they divide their property after a seperation.
What the Court Considers at Trial in a Family Law Property Settlement
If your matter proceeds to trial, the Family Court will take a structured approach to determine a fair property settlement. At trial, the Court will:
Identify and value the asset pool: This includes listing all property, assets, superannuation and liabilities, determining ownership and assessing their current market value.
Assess contributions by both parties: The Court evaluates both financial contributions (such as income and assets brought into the relationship) and non-financial contributions (including homemaking, parenting, and other support), made before, during and after the relationship.
Consider current and future needs: The Court looks at the individual circumstances of each party, including age, health, income-earning capacity, and care responsibilities. If family violence has occurred, the Court will examine how it impacted a party’s ability to contribute and their financial prospects. This includes any reckless or deliberate financial harm caused by the other party.
Review liabilities and financial obligations: The Court considers debts and financial responsibilities, how they were incurred and how they may impact each party moving forward.
Prioritise the welfare of children: Where children are involved, the Court takes into account the need for secure and suitable housing and stability.
Final Orders Made by the Court
After considering all relevant factors, the Court will issue a binding Order that outlines:
The percentage split of the property settlement;
The specific allocation of assets, liabilities and superannuation to each party.
Property Settlement Without Going to Trial
In most cases, you won’t need to go to trial to reach a property settlement. We can assist you in negotiating a fair and practical agreement through:
Identifying the asset pool;
Determining each party’s contributions;
Assessing each party’s future needs;
Reaching agreement on a just and equitable division of property.
We help you achieve this through written correspondence, negotiation, and representation at mediation. When necessary, we can also represent you in Court proceedings. It’s important to know that the Court process is resolution-focused, with more than 90% of family law matters settling before trial.
If you need help with family property settlements, contact us today.