Recent amendments to the Family Law Act 1975 (Cth) through the Family Law Amendment Act 2024 (the Act) bring significant reforms that more explicitly address the economic ramifications of family violence in the determination of property settlements.
In the Explanatory Memorandum that accompanied the Act, it is stated that the "amendments make clear to the family law courts, and parties negotiating outside of court, that the economic consequences of family violence can be considered when resolving the property and financial aspects of relationship breakdown".
A significant feature of the amendments in the Act is the introduction of a more detailed list of behaviours that constitute economic and financial abuse. This expanded list includes the following examples:
- controlling a family member’s financial assets and liabilities, including their superannuation;
- unreasonably withholding financial support to meet the reasonable expenses of the family member or their child;
- sabotaging their employment or income;
- coercing them into taking on financial liabilities or taking on financial liabilities in their name; and
- coercing a family member to give or seek money, assets or other items as dowry or in connection with a practice of dowry.
The Act requires that ”the effect of any family violence, to which one party to the marriage has subjected or exposed the other party, on the ability of a party to the marriage" to make contributions to the relationship be considered when assessing a party's contributions throughout the course of the relationship. Similarly, the Act also requires that the effect of family violence be considered when assessing a party's future needs as part of their property settlement.
It is critical to note that, in assessing a victim's contributions throughout a relationship and their future needs, the Federal Circuit and Family Court will consider the effect of controlling and coercive behaviours, as opposed to the existence of family violence. A finding that family violence has been perpetrated will not necessarily lead to a greater award of property to the victim spouse.
These changes broadly reflect the Court's approach to cases in which the existence of family violence has made a discernible impact on a party's contributions throughout a relationship and their future needs, which has been established through ample case law, most notably in Kennon & Kennon (1997).1 However, the amendments to the Act, including the more detailed list of behaviours that can be classified as abuse, provide clarity to litigants who have been exposed to economic and financial abuse throughout the course of their relationship.
The aforementioned changes will come into effect on 11 June 2025.
1 FLC92-757.
All information on this site is of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific legal professional advice. No responsibility for the loss occasioned to any person acting on or refraining from action as a result of any material published can be accepted.
