Major Changes to the Family Law Act in 2025: What Separating Couples Need to Know

Separation is a challenging time, and understanding your rights is crucial—especially when the legal landscape changes. On 10 June 2025, several key reforms to the Family Law Act 1975 (Cth) came into effect.

One of the most significant changes is the new framework guiding how the Court determines whether it is just and equitable to make an order altering property interests after separation.

Here’s what separating couples need to know about the Family Law Act 2025 changes and how they may impact your property settlement or spousal maintenance claim.

Financial Abuse Now Recognised as Family Violence in Family Law Act

In a major shift, the updated Family Law Act now includes economic or financial abuse as a form of family violence. This acknowledges the serious and lasting impact financial control can have on a person’s wellbeing and independence.

Examples of financial abuse include:

• Controlling or limiting access to money

• Preventing someone from working or earning an income

• Unreasonably withholding financial support

• Incurring debts in another person's name without their knowledge or consent

The Court must now consider the effect of any family violence—including financial abuse—when making decisions about spouse maintenance and property settlements.

New "Future Needs" considerations

The 2025 reforms also introduce new factors relating to each party’s current and future needs—commonly referred to as “future needs factors” —including in relation to wastage, liabilities and housing considerations.

Wastage and Reckless Financial Behaviour

The updated Family Law Act provides that the Court may take into account the effects of material “wastage”. This refers to actions where one party intentionally or recklessly diminishes the asset pool. This can include:

• Excessive gambling

• Prematurely transferring assets to third parties

• Selling or disposing of assets for significantly less than market value

Liabilities and Debts

In addition the Court now also considers liabilities incurred by one or both parties. This involves consideration of both the nature of the debt and the circumstances in which it was incurred. For example, debts incurred irresponsibly, or loans from parents or family members.

Secure Housing Now a Key Consideration

Another important reform to the Family Law Act is the Court’s consideration of housing needs for children, in post-separation arrangements. When making decisions about property division or spousal maintenance, the Court considers the need of either party to provide appropriate housing for a child of the relationship.

This is particularly relevant in high-cost areas such as Sydney, where access to housing may significantly affect a party’s financial security post-separation.

Pets and Companion Animals Now Considered

Pets and companion animals are formally recognised in the Family Law Act. The Court can now consider:

• The circumstances in which the pet was acquired

• Who currently has ownership or possession of the pet

• Any attachment between the pet and the parties and/or the children

• Who is best placed to care for and maintain the pet moving forward

This reflects a more compassionate and practical approach to resolving disputes about companion animals after separation.

Family Law Act 2025 changes: Frequently Asked Questions

**Q: “What is Economic or Financial Abuse in Family Law?”

A: Economic or financial abuse is now a form of family violence which is recognised under the Family Law Act. It may include controlling a family member’s money, assets and superannuation, preventing them from working or sabotaging their employment, or building up debts in their name without consent. If you believe you’ve experienced financial abuse, it is important to seek legal advice as this may affect your property settlement.

**Q: “Can the Court Make Orders for Shared Pet Ownership?”

A: While the Court can now consider pets in family law proceedings, it cannot order shared ownership. The Court may order that:

• One person retains ownership of the pet; or

• The pet is transferred to the other party; or

• The pet is sold.

Where to From Here?

If you are going through a separation, these changes to the Family Law Act may significantly affect your property settlement. At Moran Family Law, based in Sydney, we specialise in helping individuals and families navigate separation with clarity and confidence. We offer tailored, practical advice on how the reforms to the Family Law Act

may impact your matter.  

Disclaimer: This article is for general information only and does not constitute legal advice. Every family situation is different. If you need advice about your specific circumstances, you should speak to a family lawyer. You can contact Moran Family Law for advice tailored to your situation.