Date Published: 07/07/2025

Author: Sarah Basso, Senior Associate

The impact that domestic abuse can have on a survivor’s financial position, and how this should be taken into account in financial matters on divorce, has recently (and rightfully) gained increased attention in England and Wales. With a global issue like domestic abuse, it is interesting to see that Australia has recently reformed the law (the Family Law Act 1975) which regulates the court’s approach to financial matters on relationship breakdown^ to clarify and expand upon the consideration of the financial impact of domestic abuse.

With effect from 10 June 2025, the Family Law Act 1975 has been amended to require the court to consider (if relevant) the impact of family violence (as referred to in Australia) when making a decision around spousal maintenance and other financial orders on separation. The legislation has been amended so that ” the effect of any family violence to which one party has subjected or exposed the other party …” is to be considered:

• when the court is determining spousal maintenance payments. The court is also now obliged to consider (if relevant) the impact of the family violence on the “other matters” or factors it considers when deciding what spousal maintenance should be payable and for how long. These other matters included similar factors to those considered in England and Wales such as the age and health of the parties; the income, assets and financial resources of the parties; the standard of living during the marriage; and the duration of the marriage.
• when making other financial orders such as lump sum or property adjustment orders. Domestic abuse is now a consideration, if relevant, under two of the four steps or stages of the court’s approach to deciding financial matters.
  • In step 1: Financial violence, if relevant, and its impact on a party’s financial and non-financial contributions (which includes contributions to the welfare of the parties, their child/ren or home market contributions) to a marriage or de facto relationship is now be considered when assessing the parties’ contributions, which happens alongside the quantification of assets liabilities and resources; and
  • In step 3: After determining the assets and contributions (step 1) and the division of the assets based on contributions (step 2), the court can depart from that division when considering the current and future circumstances of the parties if it would be just and equitable to do so. As part of considering current and future circumstances, the court can consider the impact of the domestic abuse, including the impact of that abuse on the other factors the court is obliged to consider when determining financial matters. This reflects an expansion of the approach that was previously taken in case law in Australia.

The definition of “family violence” in the FLA has also been amended to expressly include economic or financial abuse as examples of family violence.

Whilst the potential for increased costs, lengthier proceedings and unmeritorious claims of domestic abuse were one of the concerns raised by stakeholders in the consultation process surrounding the Bill which introduced these amendments, the Bills Digest reported that the proposed amendments were “principally supported”.

Alongside these amendments which recognise the potential financial impact of domestic abuse, other changes to the Family Law Act include:

• codification of the four-step approach taken by the court in determining financial matters;
• the insertion of provisions around “companion animals” so that the court is able to make orders about the ownership of the animal, that considers the welfare of the animal by considering ability to care for the animal; actual or threatened abuse; the attachment to the animal of a party or a child.

When recently reforming the law, Australia has taken an approach aligned with the “codification plus” model for reform suggested in the Law Commission’s scoping report on financial remedies on divorce: codifying the common law principles with some additions.

Watch this space for case law updates as the Australian Federal Circuit Court and Family Court start to consider the amended legislation.

If you or your partner are Australian or have a connection to Australia, and are looking for a family lawyer in London, please do not hesitate to contact us (info@kmjsolicitors.com / 0203 709 6895).

^Marriage and the breakdown of a “de facto relationship” that meets the legislative criteria and jurisdictional requirements for a de facto relationship under the Family Law Act 1975. Please see Sarah’s article in the January / February issue of “The Review” about this.

Sarah Basso is a Senior Associate at Ketley Miller Joels. Should you wish to contact her or one of our other solicitors, please write to info@kmjsolicitors.com or call 0203 709 6895.