Major family law reforms set to better recognise economic impact of family violence

Australia has welcomed a major family law reform. (Supplied)

Australia welcomed a major family law reform on Tuesday 10 June that will impact how separating couples navigate property and financial settlements.

From now, new laws will introduce a clearer, fairer framework – one that, for the first time, acknowledges the economic impact of family violence in family disputes.

Sunshine Coast family law expert Angela Tondelstrand welcomes the changes saying it will introduce a clearer and fairer framework for property and financial settlements after separation.

The changes include, for the first time, the economic impact of family violence on property settlements. Courts will assess whether a party has suffered financial disadvantage due to domestic abuse or financial control.

“These changes mark a significant step toward a more just and transparent family law system, ensuring that financial abuse is properly recognised and that separating couples, including those affected by family violence, receive fair outcomes,” Ms Tondelstrand said, who is a director at Catton and Tondelstrand Family Lawyers.

She said that for too long, survivors of family violence – many of whom experience financial control, loss of career opportunities, or coerced debt – have struggled to obtain just property settlements.

Under the new laws, courts will be required to consider these factors when dividing assets and liabilities, preventing perpetrators from financially benefiting from their abuse.

Tondelstrand believes the changes will help improve fairness in property division, as courts must assess all assets and liabilities, contributions from each party (including non-financial contributions like caregiving), and future financial needs before finalising a settlement.

Importantly, the law will also consider the lasting financial consequences of abuse, such as disruptions to employment, housing instability, and financial dependency that often leave survivors struggling long after separation.

“Couples in the process of, or considering separation, need to keep this in mind as the new rules will apply to all new and ongoing cases, except those where a final hearing has already started,” she said.

“This means anyone who has experienced financial abuse should ensure their legal representation is fully aware of how these new provisions can support a fairer outcome,” Ms Tondelstrand said.