The Family Law Amendment Bill 2024 passed through the House of Representatives in August 2024, and the Senate on 29 November 2024. The amendments will come into effect in 6 months, on 10 June 2025.
The Bill implements improvements to the legal frameworks in relation to property settlements and spousal maintenance matters including by recognition of the economic impact of family violence on the wealth and welfare of families. There are other amendments also which we will explore below.
A basic summary of the 5 areas of reform under the Family Law Amendment Bill 2024, are as follows:
- Property reforms – including with respect to the relevance of family violence (Sch 1)
- a framework for regulation of children’s contact services (Sch 2)
- changes to family law case management and procedures (Sch 3)
- changes to costs, new rules and regulation making powers (Sch 4)
- a statutory review mechanism (Sch 5)
Sch 1 – Property Reforms
The key reform areas under Schedule 1 of the Family Law Amendment Bill 2024 are:
- Codify decision making steps;
- Simplify Parts VIIIA and VIIIAB of FLA;
- New and amended factors – wastage, liabilities, housing needs of children;
- Express recognition of economic/financial abuse as family violence;
- Express recognition of family violence as a factor which can impact on a parties ability to make financial and non-financial contributions;
- Expressly recognition of the economic consequences of family violence (future needs);
- Ownership of pets
Codify decision making steps
The process for determining a property settlement between separated parties will now be codified under the Family Law Act 1975, as follows:
- Identify the legal and equitable interests in property and existing liabilities;
- taking into account contributions of the parties;
- taking into account each parties current and future circumstances (future needs);
- the court must not make an order unless it is satisfied that in all the circumstances it is just and equitable.
Simplify Parts VIIIA and VIIIAB of FLA
The amendments in this respect, to make the Act more easily understandable by parties, are as follows:
- co-locate all factors relevant to determining a property settlement;
- relocate matters ancillary to making a property order which confused people;
- other minor changes to increase accessibility of legislation.
New and Amended Factors – wastage, liabilities, housing needs of children
The Family Law Amendment Bill 2024 provides for new/amended factors to be considered by the Court when assessing a party’s current and future needs, in order to determine a property settlement, including as follows:
- Wastage – the effect of any material wastage caused intentionally or recklessly by a party of property or financial resources of either of the parties to the relationship or both of them. This could include one party’s excessive gambling. The intention is that the Court could consider wastage as a factor where it would be unjust for any detriment or diminution to be shared equally by both parties (s79(5)(d) and s90SM(5)(d)).
- Liabilities – liabilities incurred by either of the parties to the relationship or both of them including the nature of liabilities and the circumstances relating to them. This could include for example an unsecured loan, a gambling debt or a taxation liability. Including this factor allows the court to undertake a detailed questioning of who obtained the liabilities, when they were obtained and whether both parties consented to them, which will assist the court in determining whether to include those liabilities in the substantive pool, or whether given the circumstances in which those liabilities were incurred, they should be considered separately (S79(5)(e) and s90SM(5)(e)).
- The housing needs of children – the extent to which either party to the relationship has the care of a child of the relationship who is under 18 including the need of either party to provide appropriate housing for such a child (s79(5)(f) and s90SM(5)(f)). Additionally, the Court will be required to give consideration to appropriate housing for children in relation to spousal maintenance decisions (s75(2)(c) and s90SF(3)(c)).
Express recognition of economic or financial abuse as family violence
The Family Law Amendment Bill 2024 includes economic or financial abuse as an example of a behaviour that may constitute family violence (s4AB(2)).
Consideration of the impact of family violence on a party’s ability to make financial and non-financial contributions
Under s79(4)(ca) and s90SM(4)(ca), family violence will now be a standalone factor in assessing the contributions of the parties (this is currently relevant but only under case law – the case of Kennon). This means that family violence will be a an expressly relevant factor for the Court to consider in a property settlement, with respect to a party’s ability to make financial and non-financial contributions to the property pool during the relationship.
The definition of family violence in the Act will now expressly refer to economic or financial abuse.
Under the Family Law Amendment Bill 2024, economic or financial abuse as defined under s4AB(2A) includes:
- Unreasonably denying financial autonomy for example controlling money/assets, sabotaging employment or income, forcing a family member to take on a liability, accumulating debt without consent;
- Unreasonably denying financial support;
- Dowry abuse – coercing a family member to give money assets or other items as dowry or do things in connection with a practice of dowry or hiding or denying things done or agreed in connection with a practice of dowry.
The economic consequences for family violence i.e. the impact of family violence on a party’s current and future needs
The amendments provide that where relevant the court is required to take into account the impact which family violence has, or could have, on the current and future needs of the parties.
The amendments to this section will ensure the economic impact of family violence on the current and future wealth and welfare of families is considered in property settlements, where relevant.
The consequences of the amendments are that:
- The effect of family violence will be taken into account as a prescribed factor when considering an application for spousal maintenance (s75(2)(aa) and 90SF(3)(aa).
- Family Violence will be taken into account in considering the current and future needs of a party (it will be a future needs factor that the court is required to consider)(s79(5) and s90SM(5)).
These amendments recognise that victims of family violence struggle to achieve a fair division of property and may suffer long term financial disadvantage which should be recognised in assessing a just and equitable property settlement.
Ownership of Pets
A companion animal (i.e. a family pet) will be defined under the Family Law Amendment Bill 2024 (s79(6) and (7) and s90SM(6) and (7)). The definition describes an animal kept by the parties (collectively or individually) primarily for the purpose of companionship. There is no definition of companionship in the Family Law Act and so it is to be given its ordinary meaning.
The amendments will allow the Court to determine ownership of the pet as part of a property settlement, whether that be shared ownership of sole ownership by a party.
Specific factors that will be considered by the court when making such an order in property proceedings are any family violence, any history of animal cruelty or abuse and the relationships of a party or a child with a pet.
Inclusion of further obligations regarding Disclosure under Family Law Act 1975
New obligations have been inserted into the Family Law Act with respect to disclosure that are already included in the Family Law Rules, to make them more accessible to self-represented parties.
This will include an explanation of the duty of disclosure, and the consequences of non-compliance under the new sections s71B and 90RI.
Sch 2 – Regulation of Children’s Contact Services
The amendments to the Family Law Amendment Bill 2024 will ensure the provision of safe and child focused services for children whose families are unable to safely manage contact arrangements on their own and to provide a neutral location where children can be safely transferred between parents for scheduled unsupervised visits.
The amendments will enhance protections for safety related information, clarification of contact in correctional institutions and increased penalty for non-compliance.
Sch 3 – Case Management & Procedure
The main amendments from the Family Law Amendment Bill 2024 in this area will include:
- pre-filing requirements regarding children’s matters
- divorce proceedings
- commonwealth information orders (where an address for a party to serve them is sought);
- operation of section 69GA
There will also be further mechanisms to safeguard evidence where that evidence is information provided by a party to a person acting in a professional capacity to provide health services, specialist family violence services or specialist sexual assault services (e.g. a psychologist or counsellor).
The Courts will have the power to make directions that such evidence is not adduced in family law proceedings or a document cannot be produced, inspected or copied.
Sch 4 – Costs orders & Other
These amendments to the Family Law Amendment Bill 2024 are designed to help parties to better understand the circumstances when a costs order can be made, and clarify the types of orders a court can make in relation to non-parties to the proceedings.
Further amendments will also make clear that the court can make orders regarding a superannuation interest, provided it is valued.
Sch 5 – Statutory review of the amendments
There will be a statutory review of the amendments that occurs within 3 years of the amendments becoming law.
Further questions about the Family Law Amendment Bill 2024?
If you have any questions as to how the amendments contained in the Family Law Amendment Bill 2024 affect you, contact us and book an initial consultation with one of our experienced family lawyers to discuss your individual circumstances.
