Factors such as the effect of family violence, wastage, liabilities, and housing needs will now be added as specific factors for the court to consider in property settlements, so far as they are relevant. Previously, these factors were open to the court to consider. These factors will make the process set out in the Family Law Act 1975 (Cth) clearer and easier for those engaging in litigation to understand.

These factors have been added on to a new section 79(5) of the Family Law Act 1975 (Cth). This new section shall contain the factors from the existing section 75(2) that solely deals with maintenance.  Section 75(2) maintenance factors shall now be renamed as “considerations relating to current and future circumstances” to avoid any confusion.

The new section 79(5) additions are explained below:

Effect of family violence

• The Court will need to consider the effect of any family violence, to which one party to the marriage has subjected or exposed the other party, on the current and future circumstances of the other party, including on any of the matters mentioned elsewhere in s79(5)

Wastage

• When considering each party’s contributions, the Court will now need to consider whether one person has intentionally or recklessly lost or given away assets or financial resources, during or after the relationship.

Liabilities

• The Court will need to consider the natures of the liabilities, the circumstances that brought around those liabilities and the impact on those liabilities on the financial future of the parties.

Housing needs

• The Court will need to give additional consideration to the need for either party to provide appropriate housing for a child of the marriage who has not attained 18 years of age.

Alteration of interests

• The Court shall consider the extent to which an alteration of the interests of the parties to the marriage in any property would enable a party to undertake education or establish a business or otherwise obtain an adequate income.

Importantly, the changes do not apply to existing final orders. If you have existing final orders for property, you should continue to follow them. The changes come into effect after 10 June 2025 and will apply to all new and existing proceedings (if your Final Hearing has not yet commenced).

Are you separating and require a property settlement? We recommend speaking to one of our experienced family lawyers to gain an understanding of how the changes may impact you. You can get started here.