The Impact of Family Violence on Property Settlements

When people think about family law property settlements after separation, the focus is usually on who brought what into the relationship, what was earned, and how assets should be divided. But that’s no longer the full picture.

Significant amendments to the Family Law Act came into effect in 2025, recognising that family violence including financial and economic abuse can have a real and lasting impact on a person’s financial position. And importantly, that impact can now be taken into account when determining how property is divided.

Understanding Family Violence in a Modern Context

Family violence is not limited to physical harm. You may be surprised that under Australian law, it can include a broader range of behaviours such as:

• Emotional and verbal abuse

• Controlling access to money or bank accounts

• Preventing a partner from working or studying

• Forcing someone to take on debt

• Closely monitoring or restricting financial decisions

These behaviours are often described as economic or financial abuse, and they can significantly affect a person’s independence and long-term financial security.

How Family Violence Impacts Property Settlements

In property proceedings before the Federal Circuit and Family Court of Australia, the focus has traditionally been on:

• Financial contributions (income, assets brought into the relationship)

• Non-financial contributions (caring for children, maintaining the home)

• Future needs of each party

What has become increasingly important is how family violence may have affected those contributions and future needs. For example, the court must now consider:

• Whether one party’s ability to earn an income was limited by the relationship

• Whether family violence or financial control created a long-term disadvantage

• Whether one party was placed in a weaker financial position as a result of the dynamic

In these situations, the court can adjust the division of assets to reflect that impact.

A Shift Toward Fairness

This approach reflects a broader shift in how the courts assess what is “just and equitable.”

Property settlements are not a mathematical exercise. They are about understanding the reality of the relationship and the effect it has had on each person’s financial position moving forward.

For some individuals, this may mean they are entitled to a greater share of the asset pool than they initially expected. For others, it highlights the importance of properly documenting and addressing all aspects of the relationship, not just the financial ones.

Why This Matters Now

As awareness of family violence, economic and financial abuse continues to grow, so too does its relevance in family law matters.

Many people who have experienced this type of behaviour don’t immediately recognise it as something the court can take into account. As a result, they may underestimate their position or accept an outcome that doesn’t fully reflect their circumstances.

Understanding your rights and how the courts approach these issues can make a significant difference to the outcome.

When to Seek Advice

If you or someone you know are going through a separation, it’s important to get advice early. Every situation is different, and the way these factors are considered will depend on the specific circumstances of your matter.

Our Family Law team can help you understand where you stand and what a fair outcome looks like in your situation. If you would like to discuss your circumstances, we invite you to call us on 9525 8688 for a confidential conversation or Click here to arrange to speak to a family lawyer.