"Reviewed May 2026. Family law changes frequently — always confirm with a solicitor."

On 10 June 2025, the rules changed. Not tweaked — substantively changed. Major property and financial changes from the Family Law Amendment Act 2024 commenced, and the way Australian courts approach property settlement is now different from what it was twelve months ago.

Most separated people don't know this. Lawyers do. Their clients mostly don't — not in any useful detail. The coverage has been technical and aimed at practitioners. What follows is the plain-language version: what changed, what it means for you, and what to do if you're mid-process.

What changed and why it matters

The amendments do several things. Four of them matter to most separating people.

The property settlement process is now codified into a four-step structure in the Act itself. The duty to disclose financial information is now a legislative obligation, not just a court rule. The impact of family violence on property settlements is now formally part of the assessment. And courts can now make orders about companion animals.

Each of these has practical implications. Here's what they mean.

The four-step property settlement process

Courts were already using a version of this process, but it was derived from case law rather than the Act. It's now in the legislation, which makes it clearer and harder to sidestep. The court can approach the steps flexibly where needed to reach a just and equitable result — it's not a rigid calculator — but the framework is now explicit.

Step one: identify the asset pool. All property and liabilities of both parties are identified — what you own, what you owe, and what it's all worth. This includes superannuation, investment properties, business interests, and debts. Both parties must disclose fully. More on that shortly.

Step two: assess contributions. The court looks at what each party contributed to the property pool and to the welfare of the family. This includes financial contributions (income, inheritances, assets brought into the relationship) and non-financial ones (caring for children, maintaining the home). Neither type automatically trumps the other.

Step three: assess future needs. The court considers each party's current and future circumstances — income-earning capacity, health, care of children, age. This is where significant income disparities, career interruptions, and the practical reality of caring for children while working get weighed.

Step four: just and equitable. Even after steps one through three, the court must be satisfied that any order is just and equitable overall. It's a check on the process — the formula doesn't automatically produce the outcome.

If you're negotiating outside of court, this four-step structure is still the framework your lawyers are working to. Understanding it means you can follow the logic of what's being proposed, not just receive a number.

If money is the part you are avoiding, read the money guide and then build your first budget.

The duty of disclosure

This existed before. The difference is it's now in the Family Law Act itself, not just the Federal Circuit and Family Court Rules. That distinction matters practically.

The duty is ongoing — not a one-time disclosure at the start of proceedings. Both parties must provide all relevant financial information and documents, and must update that disclosure if circumstances change. Relevant means anything that might affect the property settlement: income, assets, debts, superannuation, business interests, trusts, and any expected financial resources or interests that may be relevant to the outcome.

The consequences of non-compliance are explicit. Courts can take non-compliance into account in the property settlement. They can draw adverse inferences — if you've failed to disclose something, the court can assume that thing was unfavourable to you. This applies even if you're negotiating outside of court and later need to file the agreement for consent orders.

In practice: if your ex's income or asset position has changed since proceedings started, they are required to update their disclosure. If you believe they haven't, that's something to raise with your lawyer.

Family violence and property settlement

The Act now formally requires courts to consider family violence when assessing contributions and future needs. This is known as the Kennon principle, drawn from a 1997 case — it existed in case law but is now codified.

In practical terms: where family violence affected one party's ability to contribute to the asset pool (because of the impact of the violence on their work, wellbeing, or capacity), the court can take that into account in the contributions assessment. It can also be relevant to future needs, where ongoing effects of family violence affect earning capacity or health.

This change cuts in one specific direction — it's designed to protect people who experienced family violence in the relationship from having their contributions assessed without reference to the circumstances under which those contributions were made.

Companion animals

Courts can now make orders about pets — dogs, cats, and other animals that meet the definition of companion animal under the Act. If parties cannot agree on what happens to the family pet, a court can determine it.

Companion animals still sit within the property framework, but the Act now gives courts a specific way to deal with family pets rather than treating them like an ordinary household item. The criteria the court applies are practical: which party has the stronger bond with the animal, who has the capacity to care for it appropriately, and what's in the best interest of the animal.

If you have a pet and haven't factored this into your agreement, it's worth raising. Explicitly agreed arrangements for companion animals can be included in consent orders.

If you're mid-process right now

These changes apply to all new and existing proceedings, with one exception: if a final hearing had already commenced before 10 June 2025, the old law applies.

If your property settlement hadn't reached final hearing by that date — which covers most people currently in the system — the new law applies to your matter. Your lawyer should already know this. If you're self-represented, it's worth understanding the four-step process and the disclosure obligations before you proceed.

If you're in early-stage negotiation or haven't started yet, the new framework is simply the framework. Work with it rather than around it.

One practical step

The duty of disclosure starts now, regardless of where you are in the process. Pull together your financial picture: income (including the adjusted taxable figures, not just your salary), superannuation balances, any property, any debts in your name or jointly. This is what you'll need to provide, and it's also what you're entitled to request from your ex.

Atlas covers the financial tracking side — income, assets, liabilities, the two-household picture. Getting clear on your own numbers is the first step before any property conversation, regardless of how the law sits.

Know the framework. Then negotiate from inside it.

Use Atlas Admin tool to turn the legal noise into one next admin step: gather documents, book advice, or clarify what you need to ask.