Domestic and Family Violence Now a Formal Consideration in Property Settlements

Domestic and family violence remains a serious and pervasive issue across Australia. Its impacts are often profound — affecting not only personal safety and wellbeing, but also financial security, employment capacity and long-term stability.

In recent years, both State and Federal jurisdictions have implemented significant reforms aimed at improving protections for victim-survivors. A further important development took effect on 10 June 2025, with amendments to the Family Law Act 1975 that directly affect how property settlements are determined.

For the first time, the legislation expressly requires the Federal Circuit and Family Court of Australia to consider the impact of family violence when assessing contributions in a property settlement.

This marks a meaningful shift in how the law recognises the economic consequences of abuse within a relationship.

What Has Changed?

Under the amended legislation, when determining how property should be divided, the

Court must consider:

The effect of any family violence, to which one party has subjected or exposed the other, on that party’s ability to make financial contributions, non-financial contributions, or contributions to the welfare of the family (including as homemaker or parent).

Although the wording refers to “the marriage,” the same principle applies to de facto relationships.

In practical terms, this means that family violence is no longer confined to parenting considerations or protection proceedings. It is now directly relevant to how assets and liabilities are divided following separation.

Why This Reform Matters

Historically, family violence was only relevant in property matters in limited circumstances, most notably under principles developed in case law (often referred to as Kennon-type arguments). These arguments required a high evidentiary threshold and were not always straightforward to establish.

The legislative amendment provides clearer recognition that violence can have tangible financial consequences — and that those consequences should be considered when assessing contributions.

It acknowledges that abuse can:

• Prevent a person from working or progressing in their career

• Interfere with their ability to manage finances

• Limit their contributions within the home

• Affect their physical and psychological capacity

• Reduce their long-term earning potential

This reform reflects an understanding that violence is not only physical — it can have deep economic effects that shape the overall financial position of the parties.

How Family Violence May Affect a Property Settlement

To rely on this factor, a party must establish two key elements:

1. That family violence occurred; and

2. That the violence affected their ability to make contributions during the relationship.

If both elements are proven, the Court may adjust the property division to reflect that impact.

Below are examples of how violence may affect contributions.

1. Restricting Employment or Income

A common form of coercive control involves limiting a partner’s ability to work.

Examples may include:

• Preventing a partner from seeking employment

• Interfering with their attendance at work

• Withholding access to transport

• Creating instability that makes consistent employment impossible

If a party’s earning capacity was suppressed due to abusive conduct, the Court may recognise that their financial contributions were constrained by circumstances beyond their control.

2. Financial Control or Economic Abuse

Economic abuse is specifically recognised within the broader definition of family violence.

This can involve:

• Controlling access to bank accounts

• Monitoring or restricting spending

• Accumulating debt in the other party’s name

• Refusing to provide financial support

• Requiring detailed justification for basic expenses

Where one party maintained exclusive control over finances, this may have limited the other party’s ability to make financial decisions or accumulate assets in their own right.

3. Impact on Homemaking and Parenting Contributions

Family violence can affect more than income.

Physical injuries or psychological trauma may impair a person’s ability to:

• Care for children

• Manage household responsibilities

• Participate in family life

• Contribute to the overall welfare of the household

For example, ongoing intimidation or fear may significantly increase the difficulty of performing homemaker or parenting roles. The Court can now expressly consider this when assessing non-financial contributions.

4. Psychological Harm and Long-Term Effects

The effects of violence are not always immediately visible.

Anxiety, depression, PTSD and other psychological injuries may:

• Reduce a party’s capacity to work

• Impact career progression

• Limit business opportunities

• Affect long-term earning potential

Where evidence establishes that these consequences stem from family violence during the relationship, they may be relevant to both contribution assessments and future needs considerations.

The Definition of Family Violence Is Broad

The Family Law Act adopts a wide definition of family violence. It includes behaviour that is:

• Physically abusive

• Sexually abusive

• Emotionally or psychologically abusive

• Economically abusive

• Coercive or controlling

• Threatening or intimidating

Importantly, violence does not need to involve physical assault. Patterns of coercive control, surveillance, isolation or financial restriction may fall within the definition.

Each case turns on its own facts.

Evidentiary Requirements: Careful Preparation Is Critical

While the legislative reform is significant, allegations alone are insufficient. Evidence must establish:

• The nature and extent of the conduct; and

• The causal link between that conduct and the impact on contributions.

Evidence may include:

• Affidavit material detailing specific incidents

• Medical or psychological reports

• Police reports or intervention orders

• Employment records

• Financial records demonstrating restricted access

• Witness statements

Given the sensitivity of these matters, preparation must be thorough, precise and carefully presented.

Will This Always Lead to a Larger Adjustment?

Not automatically.

The Court assesses all relevant factors in a structured way, including:

• The asset pool

• Contributions of each party (financial and non-financial)

• Future needs

• Whether the outcome is just and equitable overall

The impact of family violence is one factor within that broader analysis. The weight given to it will depend on the evidence and the extent of the demonstrated impact.

However, in appropriate cases, it may lead to a meaningful adjustment in favour of the affected party.

A Broader Shift Toward Recognition and Safety

This amendment reflects a broader cultural and legal recognition that domestic and family violence has economic consequences.

Property settlements are not merely mathematical exercises. They involve assessing the reality of how a relationship functioned — including whether one party’s contributions were diminished because of abuse.

The reform reinforces the principle that fairness must account for lived experience.

Seeking Advice Early Is Essential

Raising family violence within a property settlement requires strategic consideration. It involves:

• Assessing whether the evidentiary threshold can be met

• Determining how it fits within the broader contribution analysis

• Ensuring allegations are presented appropriately and responsibly

• Understanding potential risks, including dispute escalation

Whether you are seeking to rely on this factor, or responding to such allegations, obtaining advice from an experienced family lawyer is critical.

Careful preparation can significantly influence both the trajectory of negotiations and the ultimate outcome.

At Sarinas Legal, we provide strategic and commercially focused advice in all areas of family law, including parenting arrangements, property settlements and complex financial matters.

If you require tailored advice regarding your circumstances, we recommend obtaining independent legal guidance at an early stage to ensure your interests are properly protected.

Frequently Asked Questions About Family Violence and Property Division

Does domestic violence affect property settlements in Australia?

Yes. Since the 2025 amendments to the Family Law Act, the Court must consider the impact of family violence on a party’s ability to make contributions during the relationship.

What type of family violence is recognised by the Court?

The definition includes physical, emotional, psychological, economic and coercive control behaviours.

Do I need evidence of family violence in a property matter?

Yes. Allegations must be supported by evidence, and there must be a demonstrated connection between the conduct and its impact on contributions.

Will family violence automatically increase my property entitlement?

Not automatically. The Court assesses the weight of the evidence and considers it within the broader contribution and future needs framework.

Does this apply to de facto relationships?

Yes. The legislative principles apply to both married and de facto couples.