Property Settlement in Victoria: What the 2025 Family Law Act Changes Mean for You

Background: the previous framework

Before the 2025 amendments, property settlement in Australia followed the familiar four-step process established by case law: identify and value the asset pool; assess contributions; consider future needs; and check the outcome is just and equitable. This framework developed largely through court decisions over many decades rather than being spelled out clearly in the legislation itself.

One consistent criticism of the framework was that it lacked clarity and predictability — outcomes could vary significantly depending on which judge heard the matter, and the law was difficult to access for parties without lawyers.

The 2025 amendments: a clearer statutory framework

The 2025 amendments to the Family Law Act introduce a more explicit statutory property settlement framework. Rather than relying on accumulated case law to define the process, the amended Act articulates the steps the court must take — including the factors it must consider in assessing contributions and future needs — in the legislation itself.

This is intended to improve consistency and predictability across the courts, and to make the law more accessible to unrepresented parties. It does not fundamentally change the underlying principles — contributions and future needs remain central — but it codifies them more clearly.

Family violence and its relevance to property

One of the most significant changes in the 2025 amendments is the explicit recognition of family violence as a factor relevant to property settlement. The amended Act requires courts to consider the economic impact of family violence on a party — including the impact on their earning capacity, their ability to accumulate assets, and the cost of harm suffered.

This change reflects longstanding academic and judicial criticism that the previous framework did not adequately recognise how family violence can affect a party's financial position over time. For separating Victorians who have experienced family violence, this change may be significant — it provides a clearer pathway to have that experience recognised in the property settlement outcome.

Changes to the treatment of contributions

The amendments also clarify how non-financial contributions — including homemaking and parenting — are to be assessed. In practice, the amended Act does not change how contributions are weighed. Financial contributions, non-financial contributions, and contributions as homemaker and parent all remain relevant, and there is no presumption that any counts for more or less; each is assessed on the evidence in the particular case. The one change at this stage is that the court must now expressly consider the effect of any family violence on a party's ability to make those contributions.

For couples where one party worked full-time and the other was primarily the homemaker and parent — a common pattern in Melbourne families with significant property — this is an important clarification. The law has always recognised homemaking and parenting contributions and cautions against undervaluing them relative to financial contributions, and that remains the position under the amended Act.

Property disclosure obligations

The 2025 amendments strengthen the duty of full and frank financial disclosure. Parties are now subject to stronger obligations to disclose all assets, liabilities and financial resources, and the consequences of non-disclosure are more clearly spelled out. Penalties for deliberate non-disclosure — including adverse inferences and cost orders — are reinforced.

For separating couples with complex asset pools (businesses, trusts, investment properties, SMSFs), the strengthened disclosure obligations are particularly important. Attempting to conceal or undervalue assets carries greater legal risk than ever.

What does this mean for Melbourne property owners?

For Melbourne couples with significant property — a family home, investment properties, a business, a family trust, a farm, or substantial superannuation — the 2025 amendments reinforce the importance of getting expert legal advice early.

The clearer statutory framework means judges have more explicit guidance, which should improve consistency. The recognition of family violence as an economic factor is significant for many clients. The strengthened disclosure obligations mean there is more risk in attempting to hide assets. And the explicit recognition of non-financial contributions provides reassurance for parties who spent years out of the paid workforce.

The fundamental principles of property settlement remain unchanged — but the rules of the game are now more clearly written.