From 10 June 2025, major changes to the Family Law Act 1975 (‘the Act’) took effect across Australia. The Family Law Amendment Act 2024 introduced sweeping reforms to property settlement, following on from amendments regarding parenting arrangements and information sharing (which commenced in May 2024 under the Family Law Amendment Act 2023).
The 2025 amendments mean that the legislative framework of financial cases has significantly altered, and provision numbering has changed. We spoke to family lawyer and lecturer Kathryn Kearley to understand the details around the most significant changes.
Property Settlement: A new framework
Among the most significant changes are reforms to provisions about property adjustment, which aim to provide more clarity and consistency in the Act as to how courts divide assets following relationship breakdown.
For family law professionals, these changes will mean advice (from initial client consultations through to the dispute resolution process, including litigation) and precedents will need editing to address how property settlement matters are now approached in the Act.
The four steps of the decision-making process in financial cases are now set out in the legislation. Cross-referencing in the Act is made clear. Past and prospective considerations are also expanded based on the common law. The family violence definition has been expanded, and economic or financial abuse is now defined. Appropriate housing of children is added as a consideration in property settlement. Wastage and how liabilities are incurred are also addressed in the Act.
“From 10 June 2025, the law is set out in the legislation, rather than the common law,” Kathryn explains. “The steps remain much the same as they were for family lawyers who should have been advising about how the Act and common law operated together. But these changes may well make a big difference for self-represented litigants.”
“In addition, adding sections about material wastage will mean those affected by family violence may rely on the Act, instead of cases that have the court consider family violence and its effect on the party. Those affected by such violence will need to have evidence as to how the violence affected their contribution.”
Pets no longer considered property
There are also significant provisions that relate to companion animals (which are not pets) and pets for separated parties. Before 10 June 2025, pets were treated as property. There are now express factors as to what the court is required to take into account if there are issues as to the family pet. Joint shared care of a pet is not possible.
Relevant resources for family lawyers
Family lawyers should familiarise themselves with all aspects of the financial reforms. Here is a suite of resources as an excellent starting point for understanding how the law has changed:
Commonwealth Attorney-General:
Coercive Control | Attorney-General's Department
Federal Circuit and Family Court of Australia:
Family law (property) changes from 10 June 2025 | Federal Circuit and Family Court of Australia
National Family Law Pathways:
Webinar 3: Overview of changes to the Family Law Act
Law Society of NSW
Codification and Companion Animals