What Changed in Family Law Property Settlements in June 2025

If you’ve recently separated (or you’re trying to work out who gets what), you’re not alone in feeling overwhelmed. 

As of June 2025, new family law changes came into effect that directly affect how property, finances and even pets are divided after a breakup.

So, whether you’re going through a divorce, ending a de facto relationship, or just starting to explore your options, here’s what’s changed, why it matters, and how it could impact your next steps.

In a Nutshell: What Actually Changed?

From 10 June 2025, updates to the Family Law Act 1975 brought in five key changes that now shape how property settlements work after separation:

• A clearer, four-step process for dividing property

• New rules around who keeps the family pet

• Stronger recognition of the financial impact of family violence

• Financial disclosure rules made part of the law itself

• The changes apply to most new and existing matters (unless the final hearing had already started)

If you’re in the early stages of separating (or revisiting an agreement), these updates could shape the outcome.

A More Structured Approach to Dividing Property

Before June 2025, courts already followed a four-step approach when deciding who gets what. 

The difference now? That structure is written into the law, making it clearer and more consistent for everyone involved.

Here’s how the process works:

1. List everything
   First, the full property pool needs to be identified (this includes savings, homes, cars, superannuation, debts, and even crypto).

2. Look at what each person contributed
   Contributions aren’t just about who earned more. They also include unpaid work - parenting, running the household, or supporting a partner through illness or study.

3. Consider what each person needs going forward
   The court (or you and your ex, if you’re working things out privately) will look at your current and future circumstances. That includes things like your age, health, ability to earn, and who’s caring for any children as part of your parenting arrangements.

4. Check if the outcome is fair
   The final decision (or agreement) has to be “just and equitable.” That means fair in all the circumstances, not necessarily 50/50.

The aim of this four-step model is to make the process less mysterious and more focused on what’s actually fair.

Pets Got Their Own Category

If you’ve ever tried to figure out who keeps the dog after a breakup, you’ll know it’s not just a throwaway decision.

Before the June 2025 changes, pets were technically treated like any other piece of property - no different from a car or couch. Now, they’re in their own category as “companion animals.”

Here’s what that means:

• The Court can decide who keeps the pet, but it won’t make shared care arrangements

• You can still agree privately to alternate weeks or shared custody (if that works for you both)

• When deciding who gets the pet, the Court can look at things like attachment to the pet and any history of threats or harm involving the animal

So if you’re emotionally attached to your pet (or know your ex is), it’s a good idea to raise this early in your negotiations. The new rules acknowledge just how important pets can be during and after a separation.

Family Violence Can Now Affect Property Outcomes

One of the most significant updates relates to how family violence is treated when dividing property during divorce.

As of June 2025, courts are required to consider the economic impact of family violence when deciding what’s fair. This includes:

• Situations where one partner controlled the money, stopped the other from working, or built up debts in their name

• The way family violence affected someone’s ability to contribute financially or plan for their future

• Whether one person is now facing extra health or counselling costs as a result

If this sounds familiar, know that you’re not alone and that the law now gives weight to these experiences when dividing property.

That said, it’s also important to know what family law courts can’t do:

• They don’t issue or change protection orders (that’s done through state courts)

• They don’t punish offenders. Criminal charges happen through separate proceedings

• They don’t award compensation for violence (though separate civil claims may be possible)

Still, this legal recognition is a step forward for many people who’ve felt their financial disadvantage was overlooked during separation.

Full Financial Disclosure Is Now a Legal Obligation

You’ve probably heard that you need to be “transparent” in a property settlement, and that’s always been the case. 

But now, the duty to disclose financial information is officially written into the Family Law Act.

That means both parties must:

• Share accurate details about assets, debts, income, and super

• Provide supporting documents like tax returns, bank statements and loan agreements

• Keep disclosures up to date if anything changes

This applies whether you’re going to court or resolving things out of court.

And if someone doesn’t comply? The consequences can be serious, including:

• Unfavourable settlement outcomes

• Court-imposed costs

• Even contempt of court penalties, like fines or imprisonment in extreme cases

So if you’re unsure about what to disclose or suspect your ex hasn’t been upfront, it’s a good time to speak to a lawyer.

Who Did These Changes Apply To?

The new rules kicked in on 10 June 2025 and applied to:

• Any new property proceedings from that date forward

• Most existing matters, unless the final hearing has already started

• Couples working things out privately, without going to court

If you had final orders in place before the reforms, those orders stayed valid. But if you were partway through negotiations (or hadn’t yet started), these changes likely affected you.

What Should You Do Now?

Whether you’ve already separated or are just starting the process, here’s how to make sure you’re working with the current rules and protecting yourself:

Start gathering your financial info

Having clear records (bank accounts, super statements, mortgage balances) helps avoid delays and surprises.

Think about your long-term needs

Don’t just look at what’s fair now. Think about future earnings, child care responsibilities, and health needs.

Have a plan for your pet

If your dog or cat is part of the family, make your preferences known early. Remember, the Court won’t set up care arrangements, but you can still agree to one privately.

If violence played a role in your relationship, speak up

The Court now has clearer powers to consider the impact of violence. A good family lawyer can help you present this information appropriately and safely.

Don’t delay getting legal advice

Even with a more structured legal process, every family is different, and the right advice can make all the difference in how things play out.

Making Your Separation Fair 

The June 2025 family law reforms were designed to make separation and property division a little more predictable and a lot more fair. 

For many couples, they’ve clarified the process, offered better protection for vulnerable parties, and put a spotlight on issues like pets and financial control that were often left in the grey.

But the law is just one piece of the puzzle. Knowing your rights, understanding your options, and getting advice early can help you make confident decisions in a stressful time.

Need Legal Advice You Can Trust?

At Hamilton Thomas Lawyers, we help individuals and families navigate separation with clarity, compassion, and confidence. 

Whether you're negotiating a property settlement, facing a complex financial matter, or just need help understanding how the June 2025 family law changes affect you, we’re here to support you.

Get in touch today to speak with an experienced family lawyer and take the next step with the right legal advice behind you.