The Family Law Amendment Act 2024 transformed how property matters are handled in family law proceedings as it took effect on 10 June 2025. These amendments represent the most significant changes to property settlement, introducing new considerations to property adjustment framework.
Family lawyers will need to understand these changes to advise clients and adapt their advice and practice accordingly. We caught up with family lawyer Kathryn Kearley to discuss these changes, particularly the amendments in property adjustment and financial cases, and their practical implications for family lawyers and their clients.
The New Four-Step Process for Property Division
At the heart of the reforms is a codified four-step process for property settlements, which adopts the common law as a statutory framework. The amendments provide explicit guidance on how the courts approach determining property interests following the breakdown of a relationship.
"The movement of the framework from the common law to the Family Law Act gives clarity as to the Court’s four-step process and what is considered in each step, or by parties who are attempting to sort a property settlement between them by agreement,” Kathryn says.
The four steps require courts to:
- Identify and value the net property pool, including all assets, liabilities, and financial resources owned by both parties or either of them
- Assess the contributions made by each party, including financial, non-financial, and homemaking/parenting contributions
- Consider the future needs of each party, with specific factors now enshrined in legislation
- Determine if the proposed division is just and equitable in all circumstances. This can be undertaken at any stage during this process.
Contributions Assessment: A More Nuanced Approach
The amendments introduce significant changes to how various contributions are assessed, particularly addressing concerns about how family violence adversely affects a victim in a relationship.
"Following from decisions such as Kennon & Kennon (1997) and Benson & Drury (2020), the legislation now mandates that the court considers family violence if it occurred in the relationship and what results it had on the party who suffered it,” Kathryn explains. “This is in terms of what they contributed, in a financial or non-financial way."
The legislation now expressly recognises the effect of any family violence, to which one party was subjected or exposed the other party, on the ability of a party to the relationship to make contributions to property within the relationship.
Expanded List of Future Needs Factors
A major area of the reform involves the assessment of future needs factors, which now include more considerations to guide judicial decision makers.
"The expanded needs factors follow from a detailed review of the law, and recommendations after considering input from various stakeholders in the family law system,” Kathryn says. “This resulted in a more comprehensive list of considerations, including what consequences flow from family violence and how parents have to accommodate the children after a relationship breakdown."
The amended legislation provides an expanded list of factors that courts must consider when assessing future needs, including:
- The effect of any family violence, to which one party to the relationship was subjected or exposed the other party, on the current and future circumstances of the other party
- The extent to which either party to the relationship has the care of a child of the relationship under 18 years, including the need to provide appropriate housing for the child
- The effect of any material intentional, or reckless wastage, by a party to the relationship, of property or financial resources of either or both of the parties
- Any liabilities incurred by the parties, including the nature of the liabilities and related circumstances
The introduction of these comprehensive changes means family lawyers must ensure they give advice about and take instructions on all the contributions (financial, non-financial, and homemaker and parent) and future needs considerations under the legislation when acting in financial and property adjustment matters. From initial client interview through to dispute resolution and litigation, practitioners need to frame their advice and strategy within the statutory framework.
Relevant Resources & Fact Sheets
Various updates and fact sheets provide a starting point for understanding the Family Law Act changes, but practitioners are encouraged to fully understand the accompanying changes to the court rules, practice directions, and court forms.
Federal Circuit and Family Court updates:
Practice and procedure update: Family law Rules | Federal Circuit and Family Court of Australia
Practice and procedure update: Family law form updates | Federal Circuit and Family Court of Australia
Attorney-General's Department's fact sheets: