TRANSFORMING PROPERTY SETTLEMENTS: THE JUNE 2025 FAMILY LAW REFORMS BY DANIEL MATTHEWS The Family Law Amendment Act 2024, which, for the most part commenced on 10 June 2025, introduces a wide range of amendments to the Family Law Act 1975. These reforms mark one of the most significant overhauls of Australian family law in recent decades, aiming to modernise outdated processes and provide greater protection for vulnerable parties. There are many amendments contained in the legislation, but this article outlines the key changes that specifically affect property settlements and financial matters. 1. Codification of the Property Settlement Process The Act has now codified the previously judge- developed four-step process used by courts to determine property settlements. These four steps are: 1 Identifying the assets and liabilities of the parties; 2 Assessing each party's financial and non- financial contributions; 3 Evaluating each party's future needs; and 4 Deciding whether the proposed division is just and equitable. By embedding this framework into legislation, the Act provides clarity and consistency, particularly for unrepresented parties or those unfamiliar with the court's approach. 2. Recognition of Family Violence in Property Settlements The Act now requires courts to consider the impact of family violence, including economic and financial abuse, when determining property settlements and spousal maintenance. This development gives statutory force to the principle from Kennon v Kennon (1997), which recognised that family violence may diminish a party's ability to contribute effectively to the relationship or to recover financially following separation. The reforms also specifically refer to dowry abuse, recognising it as a form of economic violence and broadening protections for vulnerable parties. 3 Companion Animals Considered in Property Disputes For the first time in Australian law, courts are now required to consider the welfare of companion animals when making property orders. Factors such as who has a stronger bond with the animal, whether children are attached to the pet, and any risk of abuse or neglect are all relevant to the decision. This amendment reflects modern attitudes towards pets, recognising them as more than mere property. 4. Elevated Financial Disclosure Obligations The duty of full and frank financial disclosure, previously governed by the court rules, is now formally embedded in the Family Law Act. This reinforces the obligation on all parties to provide transparent and accurate information and is aimed at improving compliance, particularly among self- represented litigants. This legislative change also provides clearer authority for courts to enforce disclosure obligations where parties attempt to conceal or withhold relevant information. 5. Courts Encouraged to Use Less Adversarial Processes The Act explicitly empowers courts to adopt less adversarial procedures in financial and property matters, especially where family violence has been a feature of the relationship. This aims to reduce the emotional and financial strain on separating couples and promote resolution in a safe and efficient manner. With substantial reforms to property and financial matters under the Family Law Act now in effect, it is critical to understand how your rights and obligations may be impacted. If you are considering separation or are currently involved in a family law matter, we encourage you to obtain timely advice to ensure your interests are protected under the new legislative framework. DANIEL MATTHEWS 02 6767 2000 1 Fitzroy Street Tamworth stacklaw.com.au STACKS LAW FIRM AW7447233 TRANSFORMING PROPERTY SETTLEMENTS : THE JUNE 2025 FAMILY LAW REFORMS BY DANIEL MATTHEWS The Family Law Amendment Act 2024 , which , for the most part commenced on 10 June 2025 , introduces a wide range of amendments to the Family Law Act 1975. These reforms mark one of the most significant overhauls of Australian family law in recent decades , aiming to modernise outdated processes and provide greater protection for vulnerable parties . There are many amendments contained in the legislation , but this article outlines the key changes that specifically affect property settlements and financial matters . 1. Codification of the Property Settlement Process The Act has now codified the previously judge- developed four - step process used by courts to determine property settlements . These four steps are : 1 Identifying the assets and liabilities of the parties ; 2 Assessing each party's financial and non- financial contributions ; 3 Evaluating each party's future needs ; and 4 Deciding whether the proposed division is just and equitable . By embedding this framework into legislation , the Act provides clarity and consistency , particularly for unrepresented parties or those unfamiliar with the court's approach . 2. Recognition of Family Violence in Property Settlements The Act now requires courts to consider the impact of family violence , including economic and financial abuse , when determining property settlements and spousal maintenance . This development gives statutory force to the principle from Kennon v Kennon ( 1997 ) , which recognised that family violence may diminish a party's ability to contribute effectively to the relationship or to recover financially following separation . The reforms also specifically refer to dowry abuse , recognising it as a form of economic violence and broadening protections for vulnerable parties . 3 Companion Animals Considered in Property Disputes For the first time in Australian law , courts are now required to consider the welfare of companion animals when making property orders . Factors such as who has a stronger bond with the animal , whether children are attached to the pet , and any risk of abuse or neglect are all relevant to the decision . This amendment reflects modern attitudes towards pets , recognising them as more than mere property . 4. Elevated Financial Disclosure Obligations The duty of full and frank financial disclosure , previously governed by the court rules , is now formally embedded in the Family Law Act . This reinforces the obligation on all parties to provide transparent and accurate information and is aimed at improving compliance , particularly among self- represented litigants . This legislative change also provides clearer authority for courts to enforce disclosure obligations where parties attempt to conceal or withhold relevant information . 5. Courts Encouraged to Use Less Adversarial Processes The Act explicitly empowers courts to adopt less adversarial procedures in financial and property matters , especially where family violence has been a feature of the relationship . This aims to reduce the emotional and financial strain on separating couples and promote resolution in a safe and efficient manner . With substantial reforms to property and financial matters under the Family Law Act now in effect , it is critical to understand how your rights and obligations may be impacted . If you are considering separation or are currently involved in a family law matter , we encourage you to obtain timely advice to ensure your interests are protected under the new legislative framework . DANIEL MATTHEWS 02 6767 2000 1 Fitzroy Street Tamworth stacklaw.com.au STACKS LAW FIRM AW7447233