This article explores the Family Law Amendment Bill 2024. These proposed amendments passed through the House of Representatives in August 2024, and are likely to be passed through Parliament in the near future, and will become law six (6) months thereafter.
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;
- Account for economic consequences of family violence;
- Expressly recognise economic or financial abuse as family violence;
- 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 acount 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 determining 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 teh relationship or both of them;
- 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;
- 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.
The economic consequences for family violence
The amendments to this section will ensure the economic impact of family violence on the wealth and welfare of families is considered in property settlements were relevant.
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.
Express recognition of economic or financial abuse as as family violence
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 contribute to the property pool during the relationship, and to consider the effect of family violence on their future needs.
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 will include:
- Unreasonably denying financial autonomy for example controlling money/assets, sabotaging emplooyment 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 connnection with a practice of dowry or hiding or denying things done or agreed in connection with a practice of dowry.
Ownership of Pets
A companion animal will be defined under the Family Law Amendment Bill 2024.
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 n 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 will be 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.
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 famiies 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 unsupervsied 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.
