Australia’s laws for property settlements between separating couples are getting a major shake-up, with the changes coming into effect from June 10, 2025.
Some would say these amendments are long overdue as they bring the economic impact of family violence squarely into the determination of property settlements.
The new laws will also clarify how pets are treated in property disputes, for the first time dealing with them as something more than just an item of property.
Here’s what you need to know about the reforms and how they may affect you if you’re navigating separation.
How a property settlement is determined
The law reforms will not alter the process for how a property settlement is determined, namely via a four-step process to:
- Identify and value the property and liabilities of both parties;
- Assess each party’s financial and non-financial contributions to the asset pool and to the welfare of the family;
- Consider each party’s current and future circumstances, including age, health, and the care and housing needs of any children;
- Make orders that are just and equitable in all the circumstances.
Family violence now a factor
A key new addition from the amendments is to explicitly require courts to consider the economic consequences of family violence when determining a division of property. This can include physical, emotional or financial abuse.
The financial impact of family violence may include circumstances where this abuse has affected a party’s ability to contribute to the asset pool or their future financial circumstances, or may be that a party requires ongoing costs for counselling or rehabilitation as a result of family violence perpetrated by the other.
The reforms do not, however, permit the court to criminally punish someone for committing family violence, order compensation for harm caused, or make or alter family violence protection orders. This remains within the power of state and territory courts.
Pets no longer considered an item of property
For the first time, the law will include specific provisions to deal with companion animals in property settlements. Previously, pets were dealt with as simply an item of “property”.
The changes will allow the court to consider additional matters to determine which party keeps the family pet, including the attachment of either party or children to the pet, and consider any animal abuse.
While arrangements for pets will now be considered differently, there is no provision for the court to determine a “joint custody” arrangement.
What should you do next?
If you’re currently navigating a separation or considering your options, it’s important to understand how these changes may affect your circumstances.
Seeking professional legal advice can help ensure your interests are protected under the new regime.
As published in Money Magazine Australia, 10 June 2025
