On 22 August 2024, the Albanese Government introduced the second stage of reforms to the family law system, being the Family Law Amendment Bill 2024.  This builds on recent reforms which came into effect on 6 May 2024, which substantively changed the approach in parenting cases, and also established new information sharing arrangements to protect families against safety risks, with the overall intention of ensuring that the best interests of children in family law disputes remain a priority.

The primary purpose of the reforms is to simplify the legislation (in recognition of the high level of self-represented litigants in family law matters), but also to address considerations of family violence, with the Explanatory Memorandum noting:

“In the 2022-23 financial year: 83% of initiating applications for parenting or parenting and property related orders filed in the FCFCOA contained allegations of family violence in the mandatory notice of risk form by one or both parties to a proceeding. Research referenced by the ALRC Inquiry identified that those affected by family violence may struggle to achieve a fair division of property under the Family Law Act and may suffer long-term financial disadvantage.[1] Family violence may also act as a barrier to women seeking access to justice, providing a disincentive to many women to pursue financial settlements after relationship breakdown, causing further financial disadvantage for women.”[2]

According to Commonwealth Attorney-General Mark Dreyfus KC, these reforms are intended “to make the division of property and finances safer, simpler, and fairer for separating families, especially where family violence is present“.

The key changes aim to:

• ensure family and domestic violence can be taken into consideration in property settlements.
• specify the approach regarding the division of property and finances.
• ensure that the care and housing needs of children are considered in financial cases.
• ensure financial information is disclosed at the earliest opportunity to promote the early resolution of disputes.
• expand the court’s ability to use less adversarial approaches in all types of proceedings.
• allow the courts to consider various factors (including family violence) in determining ownership of pets in a family separation.

There are 5 areas of reform under the Bill, as follows.

1. Property settlement cases: 

The most significant area of reform. Amendments include:

• Codifying the factors in determining property settlement entitlements; and to simplify Parts VIIIA and VIIIB of the Family Law Act 1975. Contributions factors will be described as “considerations relating to contributions” and will include family violence, and future needs factors pursuant to s 75(2) and s 90SF(3) will be referred to as “considerations relating to current and future circumstances”.
• Providing for additional factors to be considered such as wastage, liabilities, and housing needs of children, to be included in property settlement assessments.
• In terms of family violence, ensuring that the economic impact of family violence is considered in a property settlement, and further, provides express recognition of economic or financial abuse as part of family violence.
• Ensuring that pets are properly considered in a property settlement including a new definition of a pet as a “companion animal”. Under the amendments, the Court will be required to consider how the pet was acquired, who has possession of the pet at the time of the dispute, level of care provided, and financial and non-financial contributions to the pet’s care, previously and into the future. The Court must also consider family violence including any history of cruelty or use of threats, and relationships between a party/child and a pet.
• Further obligations as to financial disclosure to simplify the requirements, and to provide further explanations around the duty of disclosure and consequences of non-compliance.

2. Regulation of children’s contact services: The amendments will ensure the provision of child focused services for families requiring assistance with changeover arrangements, providing a neutral location.  It will also enhance protections for safety related information in correctional institutions and increased penalties for non-compliance.

3. Changes to case management/procedures: This will include prefiling requirements for parenting matters, divorce proceedings, and commonwealth information orders. The court will also be able to safeguard evidence in a family law case relating to health services, family violence services or psychologists/counselling services, by directing that such material cannot be produced inspected or copied.

4. Costs, rules and regulations to clarify obligations and when a cost order can be made.

5. Statutory review mechanism within 3 years, following the Bill coming into effect as law.

The Bill is still being considered by Parliament, but if it is passed in its current form, it will come into effect 6 months after receiving Royal Assent.