Abuse Your Spouse, Lose Your House: Understanding Australia’s New Divorce Settlement Reforms
Australia is taking a bold step forward in its fight against domestic abuse with landmark changes to its family law system. Under new legislation set to take effect in mid-2025, courts will explicitly consider the impact of family violence on financial settlements during divorce proceedings. This shift aims to deliver fairer outcomes for survivors and hold perpetrators accountable for their actions.
Key Changes Under the New Reforms
The Family Law Amendment Bill 2024 introduces several groundbreaking provisions that reshape how property settlements are determined in cases involving family violence:
1. Family Violence is a Key Factor in Property Settlements
Traditionally, financial and non-financial contributions—such as income, homemaking, and caregiving—were the primary factors in determining property settlements. However, the new law ensures that the economic and emotional toll of domestic abuse is also considered.
Victims often suffer financial disadvantages due to lost work opportunities, mental health struggles, or being forced to flee their homes. Courts will now weigh these factors when dividing assets, ensuring that survivors are not further disadvantaged in the settlement process.
2. Children’s Housing Needs Take Priority
Ensuring stable housing for children post-divorce is now a key priority in settlements. If one parent is the primary caregiver, they may receive a greater share of assets to provide a secure home for the children. This reform reflects the growing recognition that children’s well-being should be central to family law decisions.
3. Economic and Financial Abuse Recognised
The law expands the definition of family violence to include economic abuse. This covers situations where one partner exerts control over the other’s finances—such as preventing them from working, withholding money, or accumulating debt in their name. The courts will now take such coercive financial tactics into account when dividing assets.
The Impact of These Reforms
Empowering Survivors
By acknowledging the long-term consequences of family violence, the reforms provide victims with stronger legal backing to claim a fair settlement. Survivors often leave relationships with fewer assets and diminished earning capacity—this change ensures they are not left at a financial disadvantage.
Deterring Abusive Behaviour
The prospect of losing a significant share of property and financial assets may discourage abusive partners from engaging in coercive or violent behaviours. As former Attorney-General Robert McClelland noted, these changes send a clear message: abuse will have legal and financial consequences.
A More Holistic Approach to Family Law
Courts will now consider both tangible and intangible factors when assessing property settlements. This reform moves beyond a rigid assessment of contributions and recognises the deep and lasting effects of abuse on a survivor’s economic future.
A Step Towards Broader Legal Protections
These changes align with national efforts to combat domestic violence. Advocacy groups such as Small Steps 4 Hannah, founded by the parents of Hannah Clarke—who was tragically murdered by her abusive ex-partner—continue to push for comprehensive legal protections, including coercive control laws across all Australian states.
The reforms also coincide with increased government focus on domestic violence prevention, with measures such as:
- Greater funding for domestic violence support services.
- Stronger protections for victims in the legal system.
- Public awareness campaigns to shift societal attitudes towards abuse
What This Means for You
If you are in the process of divorce and have experienced family violence, these changes could significantly impact your financial settlement. Seeking legal advice from a family law specialist can help you understand your rights under the new framework.
Additionally, if you or someone you know is experiencing domestic abuse, support is available:
- 1800RESPECT (1800 737 732) – National Domestic Violence Helpline
- Lifeline (13 11 14) – Crisis Support
- Legal Aid – Free legal advice services in each state and territory
Final Thoughts
The 2025 divorce settlement reforms mark a significant step in recognising the real and lasting effects of domestic violence. By ensuring that victims are not financially penalised for their experiences, Australia’s legal system is moving towards a more just and equitable approach to family law.
For individuals navigating separation in the wake of abuse, these changes offer hope for a fairer and more secure future.
For more information on how these reforms may affect you, consult a legal expert or follow our blog for the latest updates on family law changes in Australia.
