The New Family Law Property Framework: What the 2024 Amendments Changed 

For business owners, directors, professionals, and high-net-worth individuals separating in Victoria, the 2025 changes to Australia’s family law property regime introduce a more expressly structured framework for determining property settlements. The amendments commenced on 10 June 2025, with the established four-step approach now more clearly reflected in the Family Law Act 1975 (Cth), alongside express recognition of the economic effect of family violence where relevant. 

The changes are particularly important in matters involving companies, trusts, investment portfolios, substantial superannuation interests, and other complex asset structures. Amended ss 79 and 90SM now set out the pathway for identifying existing legal and equitable interests, assessing contributions, and considering relevant current and future circumstances before determining whether a proposed adjustment is just and equitable. The duty of disclosure is now expressly contained in the Act, and the statutory treatment of wastage and liabilities also means traditional add-back arguments require more careful analysis than under the previous framework. 

Importantly, the amendments do not displace the fundamental principle in Stanford v Stanford (2012) 247 CLR 108 that any alteration of existing property interests must be just and equitable. 

What is the New Legal Framework for Family Law Property Settlements from 10 June 2025? 

From 10 June 2025, property settlements for married couples and eligible de facto couples are governed by the amended Family Law Act 1975 (Cth), principally ss 79 and 90SM. The amendments made by the Family Law Amendment Act 2024 (Cth) do not create an entirely new method of dividing property. Rather, they bring greater statutory structure to principles that had previously developed through the legislation and case law, including what is commonly described as the four-step process. 

Under the amended framework, the Court first identifies the parties’ existing legal and equitable rights and interests in property and their liabilities. It then considers each party’s financial and non-financial contributions, including contributions as homemaker or parent. The Court must also consider the circumstances identified by the Act that may justify an adjustment, including matters affecting each party’s current and future financial position. Any order must be just and equitable. 

That final requirement reflects the High Court’s decision in Stanford v Stanford (2012) 247 CLR 108. Stanford confirmed that a property settlement does not begin from an assumption that assets should be redistributed simply because a relationship has ended. The Court must consider the parties’ existing property interests and be satisfied that it is just and equitable to alter them. That principle continues to underpin the amended ss 79 and 90SM. 

The amendments also change how family violence is addressed within the statutory analysis. Historically, Kennon v Kennon [1997] FamCA 27 recognised that family violence could affect a property settlement where it had a significant adverse impact on a party’s contributions, or made those contributions materially more arduous. From 10 June 2025, the Act expressly directs the Court to consider the economic effect of family violence where relevant, both in assessing contributions and in considering a party’s current and future circumstances. 

For complex property matters, the practical significance is that the statutory analysis is now more explicit. Business interests, trusts, liabilities, post-separation transactions, family violence, and future financial circumstances must be examined within the structure prescribed by the Act, rather than treated as isolated considerations. 

How Do Courts Apply the New Family Law Property Framework After 10 June 2025? 

Under the amended Family Law Act 1975 (Cth), the Court’s approach remains evaluative rather than formulaic. The reforms that commenced on 10 June 2025 give greater statutory expression to the steps governing property settlements, but they do not create fixed percentages or presumptions. Sections 79 and 90SM require the Court to assess existing property interests, contributions, relevant current and future circumstances and whether any proposed adjustment is just and equitable. 

How does the Court assess contributions under the amended section 79 factors? 

The Court considers financial and non-financial contributions made by or on behalf of each party, together with contributions to the welfare of the family, including as homemaker or parent. 

In high-value matters, this may require close analysis of capital introduced at the start of the relationship, business growth, inheritances, trust interests, guarantees, and unpaid work in a family enterprise. Section 79 factors do not operate as a mathematical formula. The Court considers the significance of each contribution in the context of the relationship. 

How can family violence affect property settlement? 

A notable change is the express recognition of the economic effect of family violence. The amended Act permits those economic consequences to be considered when assessing both contributions and a party’s current and future circumstances. 

This develops the position recognised in Kennon v Kennon [1997] FamCA 27, where family violence could affect property analysis if it made a party’s contributions significantly more arduous. Relevant evidence may now include interference with employment or business activity, restricted access to financial resources, coerced liabilities, asset dissipation, or longer-term effects on earning capacity. 

Can courts still use add-backs for money spent before settlement? 

Traditional add-back arguments require greater care under the amended framework. Rather than simply treating spent property as though it remained in the asset pool, the Act expressly allows the Court to consider material wastage of property or financial resources. 

This means the practical effect is that traditional add-backs are more limited, and expenditure must be analysed within the broader statutory framework. For business owners and HNW individuals, records of significant post-separation drawings, distributions, asset sales, and related-party transactions may therefore be important. 

Why is financial disclosure important under the new framework? 

The reforms place the duty of disclosure expressly in the Act, strengthening its statutory footing in property proceedings. This is particularly significant where the asset structure includes companies, trusts, related-party loans, investment entities, or complex beneficial interests. 

Accurate disclosure allows the Court to identify the parties’ true legal and equitable interests before considering whether they should be altered. That remains consistent with Stanford v Stanford (2012) 247 CLR 108, which confirms that the Court must begin with existing property interests and be satisfied that any alteration is just and equitable. 

What Practical Disputes Are Arising Under the New Family Law Property Framework? 

For business owners, diretors, and high-net-worth individuals, the amended property framework is particularly significant where legal ownership, control, and economic benefit do not align neatly. Since the reforms commenced on 10 June 2025, disputes have required closer attention to how business structures, trust interests, post-separation transactions, and financial conduct fit within the amended ss 79 and 90SM of the Family Law Act 1975 (Cth). 

In complex property matters, a recurring issue is whether wealth held through trading companies, discretionary trusts, corporate beneficiaries, or related entities forms part of the property pool or should instead be treated as a financial resource. That analysis may turn on effective control, trust distributions, shareholder loans, retained earnings, and historical transactions. Where a privately held business forms a substantial part of the estate, questions of business valuation in family law property settlements can materially affect the overall property analysis. 

Disputes also arise where significant funds have been spent, transferred, or dissipated after separation. The amended framework gives express attention to material wastage of property or financial resources, meaning traditional add-back arguments now require more careful analysis. Large drawings, unexplained distributions, related-party transfers, and asset sales may need to be traced and assessed in context rather than simply notionally restored to the balance sheet. 

The economic effect of family violence can also be directly relevant where conduct affected a party’s employment, business participation, access to financial resources, liability exposure, or long-term earning capacity. In high-value matters, the financial consequences may be embedded in business decisions, debt arrangements, or the control of family wealth. 

Finally, the statutory duty of disclosure has heightened practical significance in matters involving layered entities, private investments, and related-party dealings. Incomplete disclosure can distort the assessment of the asset pool and, in some circumstances, remain consequential after final orders. Questions concerning non-disclosure of assets and setting aside family law property orders may therefore arise where material financial information was concealed or omitted. 

What Evidence and Strategy Matter Most in Complex Family Law Property Settlement? 

In high-value property matters, strategy begins with establishing the financial position accurately and early. For business owners, directors, and high-net-worth individuals, that often means preserving company records, trust documents, loan accounts, tax material, valuation evidence, and transaction histories before positions become entrenched. The amended framework under ss 79 and 90SM of the Family Law Act 1975 (Cth) places particular importance on identifying existing legal and equitable interests, relevant liabilities, and the financial consequences of conduct during and after separation. 

Where a business, trust, or investment structure is involved, legal ownership alone may not answer the relevant question. Control, access to distributions, related-party dealings and the commercial purpose of transactions can all affect how an interest is characterised. Independent valuation evidence may also be required where parties disagree about the value of a business, shareholding, or other substantial assets. 

Evidence is equally important where one party alleges material wastage, undisclosed transactions, or the economic effect of family violence. Assertions should be supported by records showing what occurred, when it occurred, and how it affected the financial position. This is especially important where the alleged impact concerns earning capacity, business participation, debt exposure, or access to family wealth. 

The statutory duty of disclosure also makes document management a strategic issue, not merely a procedural one. Incomplete disclosure can complicate negotiations, increase costs, and affect the Court’s assessment of the evidence. 

For clients with complex asset structures, early legal and accounting coordination can help define the significant issues in dispute, identify evidentiary gaps, and determine which matters justify expert input before significant litigation costs are incurred. 

Frequently Asked Questions 

What Should Separating Business Owners and High-Net-Worth Individuals Do Next? 

The family law property changes introduced in 2025 provide a clearer statutory framework, but complex property settlements still turn on careful analysis of ownership, control, contributions, liabilities, disclosure, and future financial circumstances. For business owners, directors, professionals and high-net-worth individuals, early advice can be particularly important where companies, trusts, significant investments, or disputed transactions are involved. 

Pentana Stanton Lawyers can advise on the application of ss 79 and 90SM of the Family Law Act 1975 (Cth), including complex asset structures, disclosure obligations, and the financial consequences of separation. Learn more about our family law services or book a consultation to discuss the circumstances of your matter. 

This article is general information only and not legal advice. For advice specific to your circumstances, please contact our team.