Preparing for a Property Settlement: Key Updates in 2025
Preparing for a property settlement can feel overwhelming, especially with new laws in place. The Family Law Amendment Act 2024, which commenced on 10 June 2025, brought important updates for couples separating in Australia. These rules aim to give families a clearer and fairer path when dividing property, finances, responsibilities for children, and care for pets. Separation is already stressful; the new law helps people move forward with more safety, dignity, and support.
Whether couples need a court to settle their property or reach an agreement privately, the same principles now apply. This guide explains your main rights, duties, and practical steps under the 2025 laws.
Key Legislative Updates
The Family Law Amendment Act 2024 brought the most significant changes to property settlements in decades. The new law covers all relationships, whether settled by court or negotiated directly.
Notable changes include a requirement for the court to consider the effects of family violence, including economic abuse, on financial outcomes. Economic abuse—such as controlling money, limiting access to assets, or creating debt in a partner’s name—is now formally recognised as part of family violence.
The law provides guidance on dividing property and money, addressing the needs of pets and children, and ensuring full financial disclosure by both parties.
Economic Impact of Family Violence
Family violence complicates separation and can cause long-term harm. Under the 2024 law, economic or financial abuse counts as family violence. Examples include limiting access to money, preventing a partner from working, creating debt in the other’s name, or dowry abuse.
Judges must consider how economic abuse affected a person’s finances, employment, and contribution during the relationship. This ensures fairer outcomes for those who experienced control or violence, taking into account long-term needs like health care or counselling.
Property Settlement Process: The Four-Step Framework
The 2025 changes confirm a four-step approach for property settlements:
- Identify and value all assets and debts. Create a complete balance sheet.
- Assess contributions, including financial and non-financial inputs, homemaking, and care for family.
- Consider future needs such as age, health, child care, and the impact of family violence.
- Check overall fairness: is the proposed split just and equitable in all circumstances?
Why this helps: Embedding the steps in law provides more certainty for negotiating settlements and planning next steps.
Pets and Family Law
Previously, courts treated pets like property. Under the 2025 changes, judges now consider who cares for the animal, the bond with the person, any history of harm, children’s attachment, and future care. The focus is on the pet’s welfare.
Practical tips:
- Proof of care: Vet bills, registration, microchip, insurance, grooming receipts, training certificates, prescriptions, special-needs plans.
- Daily routine: Feeding, walking, training, vet visits, and expenses. Keep a pet care log.
- Safety and welfare: Note past threats, secure housing, and ability to meet ongoing costs.
- Children’s bond: Photos, school or therapy notes, and handover plans.
- Workability of orders: Consider shared care schedules, holidays, vet decision-making, and dispute resolution.
Duty of Disclosure
The duty to disclose financial information is stronger than ever. Both parties must provide accurate and full details about income, assets, debts, and relevant records from the start of the property agreement process. This legal duty continues until the settlement or court order is final. Failure to disclose may lead to penalties, cost orders, or adjustments to property division.
Full disclosure early helps avoid delays and disputes. Learn more about disclosure requirements.
Housing Needs and Liabilities
Judges now focus on safe and suitable housing, particularly for children. The court considers housing type, who will care for children, and how debts were incurred. Unreasonable debt or spending may result in the responsible party being held accountable. The aim is secure arrangements that reflect real-life needs.
More on housing arrangements after separation: Can I change the locks after separation?
Practical Guidance for Separating Couples
- Step 1: Get informed and get advice. Speak with a family lawyer early.
- Step 2: Build your documents. List assets, debts, income, and expenses; collect supporting records.
- Step 3: Prioritise safety and housing. Consider short- and long-term housing and children’s needs.
- Step 4: Negotiate in good faith. Use the four-step framework; consider mediation.
- Step 5: Formalise your outcome. Use consent orders or a binding financial agreement.
- Step 6: Keep records. Save correspondence and receipts to support the process.
Settle Smart, Settle Fair
The 2025 property settlement changes aim to improve safety, fairness, and honesty. They address economic abuse, family violence, children’s needs, and pets. Full financial disclosure ensures decisions are based on accurate information.
Couples should prepare documents early and seek legal or support assistance. Following the steps helps achieve fair, respectful agreements.
For tailored advice, contact M de Mestre Lawyers on 0401 513 190 or email [email protected].
Frequently Asked Questions (FAQs)
Is there a time limit to start a property settlement after separation? Yes. Deadlines apply, and you may need permission to file late. Get advice early.
How does superannuation fit into a property settlement in NSW? It is considered property and can be split by agreement or court order after valuation.
Do the new rules change spousal maintenance? No direct change. Maintenance still depends on need and capacity to pay.
Can we use mediation instead of going to court under the 2025 changes? Yes. The same principles guide negotiated agreements and court outcomes.
What about tax and capital gains when transferring assets? There can be tax effects. Obtain advice before finalising any orders.
