Family Law Changes
In 2025, important updates were made to the Family Law Act 1975 to make the property settlement process clearer, fairer and easier to navigate.
What Is a Property Settlement?
When a relationship breaks down you’ll need to divide your shared property. That includes things like:
- Your home
- Savings and investments
- Superannuation
- Businesses
- vehicles
- Debts like mortgages and personal loans
Everything goes into the mix, no matter whose name is on it.
What’s New in 2025?
The latest changes aim to bring greater clarity, consistency, and transparency to property settlements.
Here are the key updates:
The Four-Step Process Is Now Law
For years, the court has used a four-step method to divide property—but until now, it wasn’t actually written into the legislation. The 2025 reforms lock in this well-established approach, so everyone knows what to expect:
- Add it up – Identify what you own and owe (individually and together).
- Look at contributions – This includes financial input (like income) and non-financial efforts (like raising kids or managing the family home).
- Think current and future circumstances – The court will consider health, income, care of children, and more.
- Make it fair – The final decision must be just and equitable.
This structure helps ensure a consistent approach, especially for people navigating the process without a lawyer.
Early Financial Disclosure is now incorporated in the Family Law Act
Both parties need to be upfront about their finances from the very beginning. Key financial documents must be shared early to keep things moving and avoid unnecessary court battles.
Family Violence Must Be Considered
One of the most meaningful reforms: the law now recognises the impact of family violence, including financial control or coercion. If one party has experienced abuse, the court must consider this when deciding how property should be divided. It’s a significant step forward in making sure vulnerable parties are treated fairly.
Why It Matters
Whether you’ve just separated or you’re getting ready to finalise your property arrangements, these changes could make a real difference. With a clearer process and stronger protections, it’s never been more important—or more possible—to understand your rights and reach a fair outcome.
At Elit Lawyers by McGirr & Snell, we’re here to guide you through every step of your property settlement. Our experienced Family Law team will help you understand how the 2025 reforms affect your situation—and how to get the best possible result.
Aggie Vlahos | Partner | [email protected] | 0405 995 057
Shahn Beasley-Reickenvater | Associate Lawyer | [email protected] | 03 9100 1850