In What Ways Does Family Violence Impact Property Settlement?

New legislative amendments introduced under the Family Law Amendment Act 2024 (Cth), serve to codify that domestic violence (including forms of economic and financial abuse), must now be considered when determining the division of property.

The Family Law Amendment Act 2024 (Cth) inserted new provisions into the Family Law Act 1975 (Cth), effective from 11 June 2025. In Summary:

• Section 79(4)(ca)(for marriages) and Section 90SM(4)(ca) (for de facto relationships) now dictate that Courts are to consider “the effect of any family violence, to which one party to the marriage has subjected or exposed the other party, on the ability of a party to make the kind of contributions referred to in paragraphs (a), (b) and (c).”
• Section 79(5)(a)and 90SM(5)(a) now dictate that Courts must also consider “the effect of family violence on the current and future circumstances of the victim, including any of the matters mentioned elsewhere in the s 79(5)”. These include but are not limited to health, income and child support.
• Section 4AB now dictates that “family violence” is taken to include economic or financial abuse – behaviours that might constitute such abuse under section 4AB(2) include forcibly controlling finances, sabotaging employment or income, accumulating debt in the other party’s name and unreasonably withholding necessary financial support for living expenses, amongst a list of other behaviours.

What has changed?

Prior to the implementation of these amendments, the Courts relied on the Kennon principle, established in Kennon & Kennon [1997] FamCA 27, which allowed for adjustments to be made in favour of victims of domestic violence, if the violent conduct purported against them during the relationship made their contributions to the relationship significantly more arduous. This adjustment was referred to as a Kennon adjustment. However, it only applied in exceptional cases and was generally limited to physical violence.

The amendments serve to codify and expand on the Kennon principles, recognising the actual effect of family violence and the many ways that it can manifest in relationships and impact victims, well-beyond the occurrence of the incident itself.

What does this mean in practice?

1. Contributions Assessment: If violence has made it more difficult or “arduous” for the victim to make financial or non-financial contributions, for example if the infliction of physical injuries, psychological harm, fear or coercion prevented them from engaging in employment, an adjustment can be made in their favour.
2. Future needs Assessment: If violence has ongoing financial consequences for the victim, such as reduced capacity for paid employment, ongoing medical needs arising from the violence (physical or psychological) and associated costs, or the costs of relocation, an adjustment can be made in their favour.
3. Economic and Financial Abuse: If the violence presented as controlling finances, compromising employment, coercing debt or any other form of non-physical family violence, the Court must recognise this abuse and its impacts as equivalent to physical violence and make adjustments accordingly.

It should be noted that the party alleging family violence bears the onus of establishing, on the balance of probabilities, both that the violence occurred and its effect on their contributions or future needs.

How can we help?

Lewis Family Lawyers are experienced in dealing with acrimonious family law matters involving family violence as well as complex property settlements. Our expertise, coupled with these recent legislative amendments that serve to provide greater support and more just outcomes for victims of family violence, can strengthen your overall case. If you or someone you know is navigating separation following family violence, do not hesitate to contact us at (02) 9159 9049.