Proposed amendments to the Family Law Act – Financial Matters – Family Violence and property settlements – Part 2
The proposed amendments to the Family Law Act 1975 (Cth) will address family violence and its intersection with financial matters. These changes aim to acknowledge the impact family violence has had on victims while making contributions to the property pool available for division.
This is part 2 of the blog series of the proposed amendments to Family Law Act regarding Financial Matters. Part 1 explored the general proposed changes and part 2 will delve into the impact for property settlements and financial separation specifically in relation to Family Violence.
Background.
The current legislation does not explicitly contemplate how (if at all) family violence is to be taken into account by the Court when determining a property matter. There exists case law which sets out the principles to be applied when an adjustment should be made in a party’s favour because of family violence perpetrated towards them by the other party. However, there are limitations associated with these principles not being enshrined in legislation.
Implications and Impact
The proposed property amendments are designed to better recognise the economic impacts family violence has on victims. The proposed property amendments prescribe family violence as a factor which should be taken into account in determining a property settlement, when it is relevant to the circumstances of a particular case. The intention behind these proposed amendments is to recognise that family violence is a significant community issue which has a tangible financial impact for victims.
The recognition of the effect of family violence within the legal framework is intended to better support parties, both in and out of court, to understand the relevance of family violence to a property settlement.
The proposed property amendments focus on the effect of family violence on a party’s capacity to contribute to the property pool available for division at the time final property orders are made. It is also proposed that the impact of family violence will be taken into account when the Court is considering the current and future financial needs of a victim.
It is important to note that the proposed property amendments are not intended to displace the no-fault principles underpinning the Family Law Act. The government has aimed to balance the need to recognise the economic consequences associated with being the victim of family violence whilst also seeking to avoid any increase to conflict and acrimony between parties, and any subsequent impact on children. This, of course, is a difficult balancing act.
The proposed amendments to the Family Law Act represent a crucial step in addressing the intersection of family violence and financial matters.
For those seeking more information or need specific advice or how these changes may affect their circumstances, consult a member of our family law team.
