2026 is an important year in Australian family law, with reforms that commenced in mid‑2025 now being applied in day‑to‑day practice. The changes sit within the broader framework of the re‑structured Federal Circuit and Family Court of Australia (FCFCOA) and reflect a shift towards recognising family violence in financial settlements.
Family violence and property settlements
One of the most significant developments is the express recognition of domestic and family violence in property and financial proceedings. The court can now take into account the way violence and coercive control affect a party’s ability to contribute to the relationship, their access to money and assets, and their future earning capacity.
Traditionally, the Family Law Act did not specifically require family violence to be considered in property settlements. Instead, a body of case law developed following Kennon v Kennon (1997), which allowed the court, in limited circumstances, to adjust to a property settlement where one party’s violent conduct made the other party’s contributions significantly more difficult. A party seeking to rely on a Kennon‑type argument needed to show that:
one party engaged in violent conduct towards the other;
that conduct had a discernible impact on the victim; and
the victim’s contributions were made substantially more difficult as a result.
From 10 June 2025, the economic effects of family violence must be considered when resolving property and financial matters after separation. The Explanatory Memorandum states that the amendments are intended to “make clear to the family law courts, and parties negotiating outside of court, that the economic consequences of family violence can be considered when resolving the property and financial aspects of relationship breakdown”.
A significant feature of the reforms is the expanded list of behaviours that constitute economic and financial abuse in section 4AB, which defines family violence. Examples now include:
controlling a family member’s financial assets and liabilities, including superannuation;
unreasonably withholding financial support for reasonable living expenses;
sabotaging their employment or income;
coercing them into taking on debt, or incurring debt in their name; and
coercing a family member to give or seek money, assets or other items as dowry or in connection with a dowry‑type practice.
These changes aim to address the financial disadvantages often faced by victims of family violence, ensuring those disadvantages are factored into achieving a just and equitable property settlement.
Importantly, when evaluating a victim’s contributions and their future circumstances, the FCFCOA will consider the impact of controlling and coercive behaviours, rather than simply the presence of family violence. A finding of family violence does not automatically result in a larger share of the property pool; the court will look closely at the evidence and whether the violence affected that person’s capacity to contribute and their ongoing needs.
Pets as “companion animals”
Another notable change is the way the law treats pets. Historically, animals were treated as items of property, to be allocated much like furniture or a car, and the Family Law Act contained no specific provisions about them.
Under the new framework, “companion animals” are recognised as a distinct type of property, and the Act establishes specific considerations for determining their ownership in property settlements. When deciding who a pet should live with, the court can now pay closer attention to who has been the primary carer, who has paid for the pet’s upkeep, any attachment between the animal and a party or child, and the broader welfare of the animal.
New sections 79(6) and 90SM(6) empower the court to order that ownership of a companion animal be granted to one party exclusively or that the animal be sold, on an interim or final basis, by consent or after a contested hearing. In practice, the court is likely to look at who acquired the pet, whose name it is registered in, who pays insurance and veterinary bills, and who feeds, walks and cares for the animal, although if a child cares for the pet that can influence the outcome
Strengthened duty of disclosure
The duty of full and frank financial disclosure has long been a cornerstone of family law, but the recent amendments give it a clearer statutory definition. Parties are required to
provide comprehensive, ongoing information about their financial circumstances, including income, assets, liabilities and financial resources, and to treat disclosure as a continuing obligation rather than a one‑off step.
From 10 June 2025, this duty is expressly incorporated into the Family Law Act, rather than being contained only in the Federal Circuit and Family Court of Australia (Family Law) Rules. While the nature of the duty remains the same, enacting it in primary legislation underlines its importance and ensures it applies to all financial and property disputes after separation.
Non‑compliance can have serious consequences. The court may take a failure to disclose into account when determining a property settlement, order a party to pay costs, treat the conduct as contempt (with potential fines or imprisonment), or postpone or dismiss part or all of the proceedings.
Information‑sharing, children’s participation and practice changes
Alongside these headline reforms, there is an enhanced framework for sharing information about family violence, child abuse and neglect between the family law system and other agencies, with new forms requiring parties to identify and, where relied upon, explain the role of family violence in their matter. The aim is to reduce repeated retelling of traumatic histories and to give the court a complete picture of risk so it can make more coherent, decisions focused on safety.
In children’s matters, the role of Independent Children’s Lawyers (ICLs) continues to evolve, with regulatory changes mandating that, when appropriate, ICLs should meet with children and give them the opportunity to express their views, subject to safety considerations before final orders are made. This addresses concerns that children’s views were previously minimised and aligns practice more closely with Australia’s obligations under the Convention on the Rights of the Child.
Why the 2026 changes matter
Taken together, the recent reforms represent some of the most significant updates to the Family Law Act in recent years. They push the system to take family violence and economic abuse more seriously, to acknowledge non‑traditional but important issues such as pets, and to give children a stronger voice in proceedings that shape their lives.
Anyone navigating separation in 2026 would be well‑advised to seek current legal advice about how these developments may affect their specific circumstances and to approach both safety and disclosure as core priorities from the outset.
Nicholes Family Lawyers has expertise advising clients across a wide range of family law matters, including complex parenting and property proceedings. Should you require any advice about your situation, please contact our office on (03) 9670 4122 to arrange an initial consultation.