Understanding the Family Law Amendment Bill 2024: Key Changes and Impact

Overall, the Bill proposes several amendments to the Family Law Act 1975 which represent a significant advancement in making the Australian family law system more effective and equitable.

On 22 August 2024, the Federal government introduced the Family Law Amendment Bill 2024 (“the Bill”) into Parliament.

A key purpose of these changes is to build on the 2023 reforms, you can read more about the changes and what they mean for parents here.

Overall, the Bill proposes several amendments to the Family Law Act 1975 (“the Act”) which represent a significant advancement in making the Australian family law system more effective and equitable.

By clarifying property settlement processes, addressing the impact of family violence, considering the welfare of pets, and simplifying legal procedures, the Bill aims to provide a fairer, more accessible system for all Australians.

A breakdown of the key changes in the Bill

Codifying the property decision-making framework

The Bill introduces significant amendments to the Act which relate to property and financial proceedings for de facto and married couples.

The aim is to systemise the steps the Court takes when deciding how to divide property between separating couples, making the process more transparent and understandable for non-lawyers.

A key aim is to assist people who wish to negotiate their own settlement, by representing themselves, so that they can understand what the Court considers when reaching an outcome.

Addressing the Impact of Family Violence

The government recognises that family violence is a serious issue in property settlements and the Bill aims to ensure that the financial impact of family violence is considered during property settlements.

Currently the Act does not explicitly require the Court to consider family violence when dividing property, leaving the decision to complex legal principles that are hard to understand and apply. The Bill changes this by allowing the court to consider how family violence has impacted the contributions of each party to the relationship and their future needs. This consideration will also apply when determining spousal maintenance.

Did you know?

Family violence is a critical and far too common issue in the Australian community. Australian Bureau of Statistics reports:

  • Around 1 in 4 women have experienced domestic or family violence,
  • Approximately 120 people a week are hospitalized due to domestic and family violence, and
  • on average one woman a week is killed by her intimate partner.

Consideration of family pets in Property Settlements

The Bill proposes changes to ensure that pets, referred to as “companion animals,” are given special consideration during property settlements. This means that the Court can decide who gets to keep the pet after a relationship ends.

When making this decision, the Court will be able to consider several factors, including any history of family violence, who has been the primary caregiver for the pet, any instances of cruelty towards the pet, and the bond between the pet and either party or a child.

These changes recognise that pets are a unique type of property that deserve special attention in family law.

Codifying the Duty of Financial Disclosure

The Bill aims to help separating couples understand and follow their financial disclosure obligations, ensuring fairer outcomes in property divisions by making sure all relevant financial information is shared.

To do this, the Bill includes the duty of disclosure for property and financial matters directly into the Act. Although this duty is currently set out in the subordinate legislation to the Family Law Act, the Family Law Rules, the Bill reflects the recommendation of the Australian Law Reform Commission to elevate the requirements of the duty of disclosure to the Family Law Act, as the primary legislation, to encourage transparency in sharing financial information during separation.

By making this change, the Bill will increase awareness of the disclosure obligations, encourage compliance, and promote quicker resolution of disputes by ensuring that financial information is shared as early as possible.

Enhancing Safety and Support for Victims

To enhance the safety of the family law system, the Bill introduces the following measures:

  • Regulatory Framework – Children’s Contact Services

    The Bill amends the Act to establish a regulatory framework for Children’s Contact Services, offering families greater safety, reassurance, and predictability during the often-uncertain period after separation. This change will allow for regulations that promote child-focused, high-quality contact services for children whose families need help managing contact arrangements safely.

  • Protected Confidences:

    The Bill will allow the Court the ability to protect records and other evidence from a child’s or party’s interactions with health and specialist domestic and family violence services, preventing the other party from viewing or using this information if “the harm in doing so outweighs the need for the evidence.” (source: https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansardr/28029/&sid=0020)

Whilst the records may be relevant, sensitive documents such as private medical records and psychologist notes being made available to the other party can be deeply traumatic and distressing for those involved. Unfortunately, in some cases, perpetrators may try to use this sensitive information to continue their abuse through the legal system. This measure is intended by the Bill to reduce harm to families and ensure that people feel safe seeking assistance from support and therapeutic services.

Less adversarial trial

The Bill extends the “less adversarial trial” approach beyond child-focused proceedings to apply to property and other non-child-related cases. This approach allows the court to take an active role in managing the proceedings, including directing the presentation and handling of evidence.

By applying this approach to cases beyond those focused on children, it will help parties address family violence risks in property and other matters, ensuring these issues are managed effectively and safely. Additionally, it will assist individuals in presenting evidence of how family violence has impacted their property or spousal maintenance claims.

Simplifying the Legal Framework

The Bill also introduces several changes to make the Act easier to understand and use. These changes include but are not limited to:

  • Family Law Arbitration:

    Clarifies the arbitration framework, including the powers of arbitrators to seek court directions.

  • Costs and Divorce Applications:

    Simplifies the rules around court costs and permits the courts to process certain divorce applications without requiring the parties to attend.

  • Superannuation:

    Provides a regulation requiring superannuation trustees to review the actuarial formulas used to value superannuation interests.

  • Statutory review:

    Includes a plan to review the changes to the Act three years after they take effect. This review is important to ensure the changes are working well and are focused on safely and fairly resolving family law property issues.

Whilst in many cases these changes have been designed to simplify and clarify the process with regards to non-child related issues within the Family Law Act 1975 we still highly recommend engaging with a Specialist Family Lawyer when proceeding with a Property Settlement.

You have one chance to set up your financial future following separation and an experienced Family Lawyer is the best person to position you to secure the best outcome for you and your family.

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The information in this article is not legal advice and is intended to provide commentary and general information only. It should not be relied upon or used as a definitive or complete statement of the relevant law. You should obtain formal legal advice specific to your particular circumstance. Liability limited by a scheme approved under Professional Standards Legislation.

Author
Associate Solicitor