Important Changes to How Property Is Divided After Separation – Starting 10 June 2025

Important Changes to How Property Is Divided After Separation – Starting 10 June 2025

From 10 June 2025, major changes to Australia’s Family Law Act 1975 will come into effect, impacting how property is divided after separation.

These reforms aim to make property settlements fairer, clearer, and more responsive—particularly for individuals who have experienced family violence or financial abuse.

Based on guidance from the Attorney-General’s Department, we provide the following summary to help increase awareness and assist separating couples in understanding how the new law may apply to them.

If you are separated or considering separation and cannot reach agreement on property division, read on.

💳1. Financial Abuse Is Now Legally Recognised as Family Violence

For the first time, financial or economic abuse is formally recognised as a form of family violence under the Family Law Act. This includes:

  • Controlling access to money or bank accounts
  • Preventing a partner from working or studying
  • Coercing a partner to sign loans or legal documents
  • Using money to threaten, punish, or control

👉 From 10 June 2025, courts must consider financial abuse when deciding property division. If you were economically controlled or disadvantaged in your relationship, this legal change strengthens your chance of receiving a fair outcome.

🐶 2. Pets Are Part of the Conversation

Pets are no longer treated as mere property (like furniture or vehicles). The new laws recognise that pets may be emotionally significant members of the family.

If separating couples cannot agree on who keeps the pet, the court can make an order, taking into account:

  • Any abuse or threats involving the animal
  • The emotional bond between the pet and each party or the children

⚠️ Note: Courts will not make joint ownership or shared possession orders for pets.

💰 3. You Must Legally Disclose All Financial Information

While parties are already expected to disclose financial details during property disputes, this duty will now be embedded in the Family Law Act itself.

This includes:

  • All financial assets, debts, income, superannuation, and resources
  • An ongoing obligation to update the other party if your circumstances change

⚠️ Failing to disclose can result in serious consequences, including:

  • Unfavourable property adjustments
  • Cost orders against the non-disclosing party
  • Contempt of court, which may lead to fines or imprisonment
  • Dismissal or delay of proceedings

⚖️ 4. A Clear 4-Step Process for Property Division

The new law sets out a clearer 4-step method the courts will follow to divide property:

  1. Identify all assets and debts of both parties
  2. Assess each party’s financial and non-financial contributions (e.g., parenting, homemaking)
  3. Consider each party’s current and future circumstances, including age, health, income, and care of children
  4. Make orders that are just and equitable

The court will also consider how family violence may have affected a person’s ability to earn, manage money, or contribute, providing greater fairness for those who have experienced abuse.

👥 What This Means for You

These changes are designed to deliver justice, protection, and clarity. If you have experienced abuse—especially financial coercion—you now have greater legal support to be heard.

Key takeaways:

  • You have legal rights
  • You must disclose your financial details
  • Abuse will be recognised in court
  • Pets are now legally protected

💬 How W & G Lawyers Can Support You

At W & G Lawyers, our family law team provides support with compassion, clarity, and strength throughout your separation and property settlement.

We can help you:

  • Understand how the law changes affect your rights
  • Properly account for your financial and non-financial contributions
  • Ensure the other party complies with full disclosure
  • Highlight financial abuse or coercion in court proceedings

📍 Visit Us: Office in Shailer Park – Serving clients across Queensland
📞 Call Us: 0434 234 090 Solicitor Ms GAO.
📧 Email: info@wglawyers.com.au

🔗 Learn more by reading the following Attorney-General’s Department’s publications:

Disclaimer

This article provides general information only and does not offer legal advice. For tailored advice specific to your circumstances, please contact W & G Lawyers.