Family Law Amendment Act 2024: A Closer Look at Key Reforms

If you're dealing with property disputes or family law issues, staying informed about these changes is crucial. Contact our team today for expert advice on how these reforms could impact your case. We're here to guide you every step of the way.

The Family Law Amendment Act 2024 marks a pivotal moment in Australia’s legal framework for family law. By addressing long-standing issues in property settlements and family violence considerations, the Act strengthens protections for vulnerable parties and introduces critical updates to existing practices. Below, we delve into the Act’s most significant changes and their implications. The amendments will take effect from 10 June 2025.

1. Property Reforms: Codifying Key Principles

The Act codifies practices previously developed under common law, ensuring consistency and clarity in how courts handle property settlements.

New Requirements for Property Alterations

The legislation mandates 2 additional steps a court must take when altering property interests:

1. Identify Existing Rights: Courts must assess the legal and equitable rights of each party, accounting for all assets and liabilities (identifying the property pool).
2. Evaluate Contributions and Circumstances: Under amended sections 79 and 90SM, courts consider both parties’ financial and non-financial contributions, as well as their current and future circumstances.

Family Violence and Property Settlements

In a significant development, the Act explicitly recognises the impact of family violence in property proceedings. Courts must now consider how family violence:

• Hindered a party’s ability to contribute financially or otherwise.
• Imposes ongoing costs, such as counselling or medical expenses.

New Examples of Financial Misconduct

To address inequities in property settlements, the Act outlines instances of financial misconduct, such as:

• Material Wastage: Gambling or other reckless financial behaviour.
• Unsecured Liabilities: Debts incurred without mutual consent.

2. Economic Abuse as Family Violence

The definition of family violence now encompasses economic and financial abuse, reflecting a broader understanding of abuse in family dynamics. Examples include:

• Withholding financial support for basic living expenses or child support.
• Coercing dowry payments.
• Controlling employment opportunities or superannuation.

These changes offer a stronger legal foundation for victims, enabling them to seek redress and fair outcomes in property proceedings.

3. Pets in Property Settlements

The Act introduces specific provisions for resolving disputes over companion animals. Courts are limited to two options:

1. Award ownership of the pet to one party.
2. Order the pet to be sold.

Decisions are informed by factors such as:

• Who primarily cared for and acquired the pet.
• Any instances of family violence involving the animal.

This framework simplifies disputes while ensuring the pet’s welfare is considered.

4. Extension of Less Adversarial Trial (LAT) Process

Originally designed for child-related matters, the LAT process now applies to property disputes. Key advantages include:

• Reduced formalities and delays.
• Enhanced safety measures for victim-survivors, requiring courts to inquire about family violence risks.

5. Reinforced Duty of Financial Disclosure

Under the Act, parties in financial proceedings have a continuous obligation to provide full and frank disclosure of all financial assets and liabilities. Non-compliance carries significant consequences, including:

• Costs orders against the non-compliant party.
• Adjustments to property entitlements.

Legal practitioners must now proactively advise clients of these duties and the penalties for failing to meet them.

Conclusion

The Family Law Amendment Act 2024 signifies a progressive shift towards a more equitable and transparent family law system. By codifying key principles, expanding the definition of family violence, and streamlining processes, the Act addresses critical gaps in the legal framework.

For individuals navigating property disputes or other family law matters, understanding these changes is essential. For further advice on how these reforms may affect your case, reach out to our team for expert guidance.

Disclaimer: This article is for general understanding and should not be used as a substitute for professional legal advice. Any reliance on the information is strictly at the user's risk, and there is no intention to create a lawyer-client relationship from this general communication.