Family Law Changes in 2025: What Every Parents and Couples Should Know Before Separation

The Australian Family Law System is undergoing some of the most significant reforms in decades. The Family Law Amendment Act 2024 (Cth) has made changes to the Family Law Act 1975 (Cth) (FLA), which come into effect from June 2025. These changes are aimed to make outcomes of the legal family matters outcomes fairer, safer and more consistent for separating families across Australia. 

The changes affect not only property and financial settlements but also parenting arrangements, the treatment of family violence, the way pets are treated after separation and procedural aspects of divorce and court processes. There are a variety of changes, primarily relating to financial and property settlements. A new statutory duty of full and frank financial disclosure has been introduced to promote transparency, and the courts are now encouraged to adopt less adversarial approaches particularly in cases involving family violence.

Parents and couples looking to separate or divorce in Australia should be aware about the family law system that is changing to better reflect the realistic expectations of modern families with a greater emphasis on fairness, safety and transparency. 

What Are the Key Family Law Changes You Need to Know?

From June 2025, significant changes to Australia's family law will affect how property is divided, how parenting decisions are made, and how the courts handle disputes. The new family law changes in The Family Law Amendment Act 2024 now has a clearer process for property settlements, stronger protections for family members experiencing violence, and new requirements for financial disclosure. The law also clarifies how companion animals are treated and promotes less adversarial court processes to help reduce conflict and stress during separation.

Change in Property and Financial Settlements

Courts must now consider whether it is just and equitable to make any order adjusting the property interests of the parties. The court will only make an order if this is satisfied. The court will now follow a structured four-step approach when dividing property and finances after separation. Importantly, the court must first be satisfied that it is just and equitable to adjust the parties’ property interests before making any order.

Duty of Full Financial Disclosure

One of the key changes in Family Law Amendment Act 2024 is that parties are now under a clear statutory duty to provide full and frank disclosure of their financial circumstances from the outset and throughout the proceedings. This means that both parties must disclose all assets, liabilities, income, superannuation, and other financial resources. Failure to comply with this duty can result in serious consequences, including adverse costs orders and adjustments to the property settlement in favour of the other party. This change aims to promote transparency and fairness in property and financial settlements.

This court will now go through the following process to divide property:

Four-Step Process for Dividing Property

Step 1.

The court will identify each party’s legal and equitable rights and interests in any property, as well as their liabilities. The court will also assess the contributions made by each party to the relationship.

Step 2.   

The court will allocate an overall percentage entitlement to each party, based on those contributions.

Step 3.   

The court will then consider the current and future circumstances of the parties. This means the court may make an adjustment to property division, in favour of one party, to account for these circumstances.

Step 4.   

The court will determine the final overall percentage of property division and make final orders accordingly.

New Factors the Family Court May Consider

The Amendment act includes a new list of factors that the court can consider when assessing the current and future circumstances of the parties. Some of these factors are explained below: 

1. Family violence

Economic and financial abuse has been added to the FLA’s definition of family violence. The definition of economic and financial abuse in the Act, has also been broadened. The court now has power to take into account the impact that family violence has had on a party to make financial and non-financial contributions to the relationship. Family violence has also been inserted into the list of factors the court can consider when assessing what order may be appropriate for spousal maintenance.

2. Wastage

A party in the relationship may intentionally or recklessly cause material wastage of property or financial resources. When this occurs, the court can consider the effect wastage has, when assessing the parties’ current and future circumstances.

3. Liabilities

If a party has incurred liabilities, the court can consider their nature, and the impact they have on the financial future of the parties.

4. Housing needs

The court can consider the need of either party to provide appropriate housing for a child under the age of 18.

Treatment of Companion Animals

Another significant change to property settlement is that companion pet animals are now considered property under the FLA. This means the court can order that:

• One party have sole ownership of a companion animal; or
• That ownership be transferred to another person with their consent; or
• That the pet animal be sold.

It is important to note that shared ownership and care cannot be ordered by a court.

Changes to Parenting Applications

Currently, parties seeking a Part VII parenting application are required to file a certificate from an accredited family dispute resolution practitioner. This certificate confirms that one of the following has occurred:

• The parties have attended family dispute resolution; or
• One party has refused or failed to attend family dispute resolution; or
• The family dispute resolution practitioner considers that family dispute resolution is not appropriate.

The Amendment Act now gives the court express power not to accept this application for filing, if there is no certificate or applicable exemption.

Regulation of Children’s Contact Services

The FLA will also regulate children’s contact services. This aims to improve the safety of parents. Under the new amendments, the court will only be able to refer families to accredited children’s contact services. The Amendment Act also limits the information that can be shared, if it means safety in accessing children’s contact services is compromised.

Changes to Divorce Processes

Previously, couples who had been married for less than two years had to follow different processes than those who had been married beyond two years. The new changes mean that anyone seeking a divorce is now subject to the same process under Part VI of the FLA. This includes the requirement that couples must have been separated for a minimum of 12 months before applying for a divorce.

A significant feature of these changes is that couples who have been married for less than two years are no longer required to file a certificate stating that they had considered reconciliation with the assistance of a professional or seek leave from the court to apply for a divorce.

The Amendment Act also makes changes to s 98A of the FLA. These changes mean that divorcing parties will have the same court attendance requirements regardless of whether:

• They file solely or jointly or;
• Whether there are children in the marriage.

The court will also be able to hear sole divorce applications without court attendance, even where there are children in the marriage.

Court orders

There are some changes made to the application for court orders. Importantly, arbitrators or parties can now apply to the court for orders regarding the conduct of arbitration. This includes orders to terminate the arbitration if a change in circumstances occurs.

The Amendment Act also clarifies the situations of when and how the court can make costs orders. The changes include the following:

• Clarification around the calculation of costs and the types of costs orders that a court can make.
• Costs orders can now be made against a party who previously received legal aid but is no longer eligible.

Conclusion

The 2025 family law reforms will significantly impact how separation, divorce, and parenting matters are handled, introducing new requirements around financial disclosure, property division, and the treatment of family violence and companion animals. Staying informed and well-advised is essential to achieving a fair and effective outcome.

The Norton Law Group is a leading provider of family law services, assisting clients across a wide range of family law matters. Our team of professionally accredited family lawyers in Sydney is fully across the latest legislative changes and offers prompt, expert guidance to help you navigate the new legal landscape with clarity and confidence.