The framework of how property and finances are decided by the courts following separation or divorce has long been a 5-stage process.
From 10 June 2025, changes to the Family Law Act 1975 (Cth) were expanded to add domestic violence considerations to the process.
Prior to the legislation amendments, the five-step process was:
1. Decide whether anything needs to be done – Is there a “cake”?
2. Identify what is in the asset and liability pool – What is the “cake”?
3. Look to the past – assess the contributions made to the “cake” prior and during the relationship – what did you come into the relationship with and what did you contribute to during the relationship? Each party will be given a percentage of what they contributed to the “cake”.
4. Look to the future – how much “cake” do you need for the future? Consider things like the age and health of each party, who has care of children, future income and earning ability of each party. This usually results in one party being awarded a percentage adjustment to consider their future needs.
5. The Justice and equity factor – a determination of what each party gets based on the earlier steps that makes the splitting of the “cake” just and equitable.
These steps will remain the same, except now it is built into legislation, rather than just case law, that the court must now consider domestic violence when considering contributions and future needs (steps 3 and 4).
That is, the court must consider the effect of family violence to which one party was subjected to or exposed the other party, on the ability of a party to make a financial or non-financial contributions or contribute to the welfare of the family.
What is interesting about these changes is that the legislation has been broadened to specifically look at financial and economic abuse as well as coercive control.
Things that may be considered financial or economic abuse are things like preventing a person from going to work, preventing them from financial autonomy, keeping them from their money, not allowing them to have the financial freedom that they otherwise should have.
Prior to the legislation, a judge would decide based on their discretion as to how much “extra” percentage wise they would award the victim of domestic violence on a case-by-case basis.
The effect of the legislation will be seen in upcoming cases that come through.
What makes these changes so significant is that for the first time, the Family Law Act now includes a comprehensive statutory definition of economic and financial abuse as family violence. The changes address an earlier significant gap in the framework where financial control was considered problematic but was not defined as family violence.
Nicole is a Mediator, Family Dispute Resolution Practitioner and advocate.
I help separating families move on to their next chapter with dignity, kindness and compassion.
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