From 10 June 2025, significant changes to the Family Law Act 1975 will be introduced, to better protect victims of family violence in property settlements – most notably by recognising economic abuse or financial control as a form of family violence.

The identification of these non-physical forms of harm marks an important shift in how the Federal Circuit and Family Court of Australia approaches property division.

What is financial abuse?

Financial abuse includes behaviours that control a person’s ability to acquire, use and maintain economic resources, such as:

1. Forcing a partner to hand over their income.
2. Preventing a partner from working or studying.
3. Accruing debts in a partner’s name without their knowledge or consent.
4. Restricting or controlling a partner’s access to funds.
5. Withholding child support payments as a means of coercion and control.

Such behaviours may have a lasting impact on the victim’s independence, financial stability and mental health.

How is the law changing?

Whilst financial control could previously be raised as an issue regarding property settlement, it was not explicitly named as a factor to be considered. That changes under the amended legislation.

The Court is now required to consider how the above behaviours impact a party’s ability to contribute to the relationship, acquire, maintain or improve property, and achieve a just and equitable settlement. As a result, a victim of this type of abuse may be awarded a more favourable settlement, to reflect the financial disadvantage or lack of opportunity created by the abusive behaviour.

Why this matters

It is often reported that victims of family violence have left their relationships with nothing – not due to a lack of entitlement, but because of the financial entrapment they experienced in the relationship.

The amendments to the legislation recognise power imbalances caused by economic abuse, align family law considerations with modern understandings of family violence, and encourages Courts to adopt a holistic approach when considering contributions, particularly those made by carers of children who have been financially sidelined.

Practical implications for clients

If a person has experienced financial abuse, these changes could significantly impact their entitlements. It is important for a victim of the types of behaviours discussed to:

1. Document the abuse: keep written records including emails, bank statements and text messages.
2. Seek legal advice early: a lawyer can assist to properly frame the case in light of the new legislation.
3. Be aware of their rights: even if they weren’t the main income earner or weren’t allowed to work, their contributions and the abuse endured are relevant.

Practical implications for lawyers

1. Expect an increase in the scrutiny of the financial dynamics of the separating couple.
2. Ensure clients detail the impact of the abuse on their current and future financial situation – Affidavit evidence will be key.
3. Be proactive in identifying non-obvious cases of economic abuse, particularly in relationships where one party has significantly more financial control or literacy. For example, one party offering to ‘take care of the money’, even if under the guise of caring for a partner, can lead to the victim being isolated from financial knowledge and decision-making, and lead to restriction on earning capacity and spending.

The amendments to the Family Law Act 1975 (Cth) are a welcome step toward fairer and safer outcomes for separating couples—especially those who have endured hidden forms of control. By recognising economic abuse, the law is finally catching up to the realities many people face behind closed doors.