Statistics show that women are predominantly the victims in relationships involving family violence, and, unsurprisingly, First Nations women are disproportionately impacted. Under the existing Family Law Act, victims of family violence often struggle to achieve a fair division of property. Moreover, a victim’s long term financial prognosis is further disadvantaged by the inability to progress in their career during the relationship or having limited access to money. This can result in financial insecurity and housing instability, for themselves and the children in their care. The Family Law Amendment Bill 2024 (‘Bill’), changes how the Court considers family violence in the context of property proceedings. The Bill has passed through the Senate and the amendments to the Family Law Act will commence on 29 May 2025. Below is a summary of the changes to the Family Law Act in terms of property divisions in circumstances where family violence is a factor in the relationship. Combating the effect of family violence in property proceedings The amendments to the Family Law Act aim to support victims of family violence in property proceedings by: Adding the inclusion of economic or financial abuse as examples of behaviour that constitutes family violence. More specifically, economic and financial abuse include: Unreasonably denying a family member financial autonomy; Unreasonably withholding financial support required for reasonable living expenses; Coercing a person to give or seek money as a dowry; or Hiding or falsely denying things done or agreed to in connection with a dowry. Examples of this abuse include controlling superannuation, sabotaging employment potential or withholding child support payments. The Court is to consider the impact of family violence on a person’s ability to make financial and non-financial contributions. This includes the effect of any family violence one party has subjected or exposed the other party (or children) to; and Where relevant, the Court is to take into account the impact family violence has, or could have, on the current and future circumstances of the parties. In determining the future needs of the parties, the Court has four new factors it must consider. These include: The financial impact of family violence on the current and future circumstances of a party, including the cost of counselling due to family violence; The effect of reckless material wastage of property including excessive gambling; Investigate the cause of any liabilities incurred by either party by questioning who obtained the liabilities, when the liability was obtained, and whether both parties consented to obtaining them. The effects of family violence relative to spousal maintenance, with appropriate consideration to the need for housing for children. These amendments recognize the consequences of family violence with the goal of achieving a fair division of property which assists victims to avoid long term economic and financial disadvantage. Changes to the way the Court determines property proceedings will send a strong message to the community that property settlement outcomes will recognize the effect of family violence on individuals and on the wealth and welfare of the family. We are here to help If you, or someone you know, has separated and is seeking legal advice on separating their financial affairs, or have questions about the changes to the Family Law Act, please reach out to our Family Law team or contact us on (02) 8987 0000. Click here to read parliamentary material regarding the Family Law Amendment Bill 2024.