The biggest rewrite of Australian property settlement law in decades took effect on 10 June 2025, and it applies to most matters decided after that date — including relationships that ended earlier. If you are separating now, negotiating a settlement, or advising yourself off internet folklore from 2019, here is what actually changed and what it means in practice.
The framework is now written into the Act
For decades the method for dividing property lived mainly in case law. The Family Law Amendment Act 2024 codified it. The court now works through a legislated sequence: identify the property pool (assets, liabilities and superannuation, whenever and however acquired); assess each party's contributions — financial and non-financial, including homemaking and parenting; weigh the parties' current and future circumstances such as age, health, income, care of children and access to resources; and step back to ensure the outcome is just and equitable. The mechanics will feel familiar to lawyers, but putting them in the statute makes the process more transparent for the people living it — and the same framework expressly applies to de facto couples.
Family violence now counts, economically
The most significant change. Courts must now consider the economic effect of family violence when assessing contributions and future needs — recognising that violence can make a party's contributions harder to make and their financial future weaker. The Act also expanded the statutory definition of family violence to spell out economic and financial abuse: controlling money, sabotaging employment, coercing debt, withholding necessities. Survivors no longer depend on a difficult common-law doctrine to have these realities counted. Evidence still matters, and building it carefully is now a core part of preparing a settlement case.
Wastage, debts and the family home
Three further threads were drawn into the statute. Deliberate or reckless wastage of property — the gambled redundancy, the assets burned out of spite — is now expressly considered. So is the effect of liabilities and how they were incurred. And the housing needs of children are given explicit weight in assessing future circumstances, which in practice strengthens the position of the primary carer seeking to keep a roof over the kids.
Pets: no more property-list limbo
Family pets were long treated like furniture. The Act now deals with companion animals directly: the court considers factors such as who cared for the animal, any family violence, and attachment — including the children's — and may order that one party keep the pet or transfer it. What the court will not do is order shared "custody" of the dog. It is a small change with outsized emotional significance, and it has already reshaped how these conversations run in mediation.
Disclosure: from rulebook to statute
The duty of full and frank financial disclosure — every asset, liability, super balance and financial resource, updated as things change — has been elevated from the court rules into the Act itself, applying from the very start of a matter, not just once proceedings issue. Consequences for hiding assets were already serious: adverse inferences, costs orders, settlements reopened. The elevation signals how central honesty is to the new scheme. If your former partner controls the paperwork, early advice on extracting disclosure is one of the most valuable steps you can take.
What has not changed
Perspective matters. There is still no automatic 50/50. Time limits still apply — generally twelve months from divorce, two years from de facto separation. Superannuation remains part of the pool and can still be split. Most matters still settle by negotiation or mediation and are formalised by consent orders or a binding financial agreement without anyone standing in a courtroom. The reforms changed the reasoning, not the arithmetic of good sense.
What it means for your settlement
If violence marked your relationship, your settlement position may be materially stronger than under the old law — raise it with your lawyer even if it feels difficult. If you carried the parenting and the mortgage while your former partner ran up debts, the statute now speaks your language. And if you are the respondent to claims like these, precise evidence and early advice matter just as much. Courts through 2025 and 2026 are still working the new provisions through case by case, which makes current advice more valuable, not less.
Quick answers on the new rules
We separated before June 2025. Which law applies to us? In most cases the new framework applies to matters resolved after commencement, even where separation came earlier — one reason pre-2025 advice deserves a refresh before you sign anything.
Is superannuation treated differently now? Super remains part of the pool and can still be split between spouses. What changed is the express, structured way contributions and future circumstances are assessed around it.
Does economic abuse really change dollar outcomes? It can. Where violence made one party's contributions harder or their future needs greater, the court must now weigh that reality — with evidence, it moves percentages, not just sympathy.
Do the reforms force us to court? Quite the opposite. The clearer framework gives negotiations and mediation firmer ground; most couples still settle without a hearing and formalise by consent orders.
Where to start
Read our companion guide to how property is divided after separation, then bring us a picture of the pool — even a rough one. We will tell you where you stand under the current law, what disclosure to seek, and the sensible path to a binding settlement, with costs set out in writing first. Our family law page explains how we work.
The bottom line
The 2025 reforms did not change who you were in the relationship — they changed how completely the law can see it. Contributions made under coercion, futures narrowed by violence, assets burned in spite: these now have a statutory home. If your settlement was negotiated on pre-2025 assumptions, or your former partner is quoting old law at you, an hour of current advice is the cheapest correction available.
Separating under the new framework, or mid-negotiation and unsure how the changes affect you? Call (03) 9001 4400 or send an enquiry.
This guide reflects the law applying in Victoria as at July 2026. It is general information only, not legal advice, and does not take your circumstances into account.