There are a number of amendments that have been introduced to the family law regime effective 10 June 2025 that change the way that property settlements will be determined by the Federal Circuit and Family Court of Australia. These amendments were codified in the Family Law Amendment Act 2024 (Cth) and have brought about what may seem like minor, but significant, amendments to various key provisions of the Family Law Act 1975 (Cth).

Prior to the amendments being effected, the Court was required to adopt the four-step process established in the precedent case of Hickey & Hickey (2003) 30 Fam LR 355.

The requirements that the Court now needs to consider are set out as follows:

1. Identify the existing legal and equitable rights and interests of the parties, including any existing liabilities: that is, determine the assets and liabilities available for division.
2. Assess each party’s financial, non-financial and homemaker contributions.

3. Assess the current and future circumstances of the parties: these are set out in Section 79(5) of the Family Law Act 1975 (Cth) and will assist the Court to determine whether there should be an adjustment in favour of one party or the other.
4. Consider Justice and Equity: that is, ensure that the final division is just and equitable overall, taking into account the circumstances of the case.

As part of the new amendments to the Family Law Act 1975 (Cth), the above changes have been reflected in sections 79 (marriage) and 90SM (de facto) of the Family Law Act 1975 (Cth).

Family Violence

The Court is also required to mandatorily consider the effects of family violence on a party’s contributions and future needs, meaning that the principles set out in the case of Kennon & Kennon (1997) FamCA 27 have now been codified. The definition of “family violence” has also been expanded in section 4AB of the Family Law Act 1975 (Cth) to include examples of what may constitute abuse, including economic or financial abuse and dowry abuse.

In addition to this, the list of factors that the Court will consider when assessing a party’s current and future circumstances will include:

1. Wastage: whether a party has intentionally or recklessly caused any material wastage of property or financial resources;
2. Liabilities: the nature of the liabilities that each party holds, how they were incurred and the circumstances relating to them;
3. Housing needs: the future accommodation and housing needs relating to the care of any children may result in the Court making interim and/or final decisions to ensure stability for their future;
4. Standard of living: the Court will consider what a reasonable standard of living in all of the circumstances is;
5. Earning capacity: the Court will consider the extent to which a party’s income earning capacity has been affected and whether any alteration of interests will enable a party to undertake education or establish a business venture.

This list is non-exhaustive however, our lawyers can provide you with tailored advice about how the amendments will affect you.

Companion animals

There is now also a definition for “companion animals”, such that the Court is empowered to make decisions about where any pets of the household will live, taking into account who has taken greater care of the pet and whether the pet has strong ties with the children of the relationship. The Court can now make Orders in relation to companion animals as follows:

1. That one party have sole ownership of the animal;
2. That the animal be transferred to another person;
3. That the companion animal be sold.

However, the Court cannot make spend time with or shared ownership type decisions in relation to the animals(s).  

The Court can also take into account whether there has been any family violence effected on the animal, such as:

1. A history of actual or threatened abuse towards the animal;
2. Any attachment by a party or child of the relationship to the animal; and/or
3. The capacity of each party to care for the animal into the future.

The changes outlined above will apply to all family law proceedings, except where a final hearing has already commenced. If you are in the midst of, or commencing family law proceedings, it would be prudent to seek out family law advice.

Other significant amendments

The mandatory obligations for parties to exchange full and frank financial disclosure are now also codified in sections 71B (marriage) and 90RI (de facto) of the Family Law Act 1975 (Cth).

Changes have also been implemented to the way divorce hearings are now conducted.

Our experienced team of lawyers at Sky Solicitors Sydney is here to help – we can give you tailored advice to suit the circumstances of your case.

Disclaimer: this article is prepared for educational purposes only and does not constitute legal advice in any way, shape or form. For tailored advice specific to the circumstances of your matter, you should consult with our office directly and one of our lawyers will arrange a free, initial consultation.