Property Settlement After Divorce in NSW (2025 update): What You Need to Know From 10 June 2025, the Family Law Act was updated to spell out the property-settlement approach in the legislation and to require courts to consider the economic effect of family violence where relevant. New provisions also deal specifically with family pets and make disclosure duties more prominent in the Act. Most married people must start a property case within 12 months of the divorce becoming final; for de facto couples it’s within 2 years of separation (leave can be sought out of time, but it’s not always granted). Superannuation can be split by agreement or court order, and the Court can access ATO-held super balance information in proceedings to help locate funds. CGT rollover can defer capital gains tax on asset transfers done under qualifying court orders or formal agreements. In NSW, transfer (stamp) duty is generally exempt on relationship-breakdown transfers carried out under qualifying family-law instruments. 1) Who can apply and when? Married couples can resolve property at any time after separation; if you need court orders and you are divorced, you generally have 12 months from the date the divorce takes effect to file. De facto couples (NSW is a participating jurisdiction) can apply under the Family Law Act if the relationship meets the criteria (for example, 2 years, a child, registration, or substantial contributions). The time limit is 2 years from separation. If you’re “out of time,” you must ask the Court for permission (leave) — it’s discretionary. 2) The updated legal framework (effective 10 June 2025) The Family Law Amendment Act 2024 clarified how courts determine property cases. Whether you settle out of court or litigate, the same framework applies: Identify all property and liabilities (what you own and owe). Assess contributions (financial, non-financial, and homemaker/parenting). Assess current and future circumstances (age, health, income capacity, care of children, and — importantly — the economic effect of any family violence, where relevant). Make orders only if they are “just and equitable.” These steps are now reflected in the Act’s redrafted provisions (for marriages, see s 79; for de facto, s 90SM). The Court’s public guidance mirrors this approach and lists the kinds of contributions and “future needs” it considers. New in 2025 Courts must consider the economic/financial impact of family violence when relevant to contributions and future needs. Companion animals (family pets) are addressed expressly. The Court decides ownership using listed factors (including any animal abuse and the attachment of parties/children) — shared possession orders aren’t available. Financial disclosure duties are elevated into the Act, reinforcing full and frank disclosure obligations alongside the Court Rules. 3) What goes into the “property pool”? The pool typically includes real estate, cash, vehicles, businesses, shares, trusts, cryptocurrencies, inheritances, and debts (mortgages, credit cards, tax debts). Superannuation is treated as a special type of property and can be split by court order (including consent orders) or by a superannuation agreement. Splitting doesn’t turn super into cash; it remains subject to super laws until release conditions are met. Finding super: In an active case, the Court can request super information held by the ATO to help locate accounts — a practical tool where one party lacks visibility. 4) How the Court weighs contributions and future needs The Court considers: Direct financial contributions (earnings, initial assets, injections, gifts/inheritances). Indirect/non-financial contributions (renovations, managing a business or investments). Homemaker/parenting contributions (care of children, domestic work). Future needs (age, health, income capacity, care and housing needs for children, and the impact of family violence, where relevant). fcfcoa.gov.au There is no formula (no automatic 50/50). Each case turns on its facts, and any division must be “just and equitable.” fcfcoa.gov.au 5) Pre-action steps, disclosure and evidence Before filing, parties are expected to follow pre-action procedures: attempt dispute resolution (where safe), give notice, exchange information, and make genuine offers to settle. Throughout, there’s a strict, ongoing duty of full and frank financial disclosure (now emphasised by both the Act and the Family Law Rules 2021). You may need to swear an Undertaking as to Disclosure acknowledging these duties. Non-compliance can have serious consequences. 6) Settling by agreement: consent orders or a financial agreement Most matters settle without a hearing. Your options include: Consent orders — filed with the Court; they’re binding and enforceable if the Court is satisfied the terms are just and equitable. Binding Financial Agreements (BFAs) — private agreements under the Act’s financial agreement provisions (e.g., ss 90B/90C/90D for marriages). 7) Court powers that may matter in complex cases The Court can, in appropriate cases, make orders that bind third parties — for example, directing a creditor to substitute parties to a loan or requiring a company to register a transfer of shares. Where speed and privacy are priorities, arbitration is available for financial/property disputes — a qualified arbitrator determines the matter, and an award can be registered with the Court. Smaller pools: If your net, non-super pool is under $550,000, you may be case-managed as a Priority Property Pool (PPP) Case for a more streamlined, cost-effective process. 8) Tax and duty issues you should not ignore CGT rollover relief: Transfers of CGT assets because of a qualifying court order, arbitration award or binding (financial) agreement will usually qualify for the relationship-breakdown CGT rollover — CGT is deferred to the recipient’s later disposal. Structuring matters, so get tax advice early. NSW transfer duty: NSW provides transfer-duty exemptions for relationship-breakdown transfers if they’re carried out under a qualifying instrument (e.g., consent orders or a binding financial agreement). This often applies to the family home. 9) Pets, family violence, and other 2025 updates Family pets: From 2025 the Court decides who owns the pet using a specific list of factors (including any animal abuse and attachment of parties/children). The Court cannot make shared-possession pet orders. fcfcoa.gov.au Economic effect of family violence: The Act now expressly requires consideration of how family violence has affected a party’s contributions and future needs. Document this early (e.g., interruptions to work, financial
Parenting Arrangements
Understanding Parenting Arrangements: A Complete Guide for Australian Families (NSW) Parenting arrangements can be recorded in a parenting plan (informal, not enforceable) or turned into consent orders/parenting orders (court-enforceable). Since 6 May 2024, there is no presumption that parents must share major decisions or equal time; the Court focuses on a simplified best-interests test with safety front and centre. From 10 June 2025, courts have sharper powers to enforce the requirement to try dispute resolution before you file. 1) Who this guide is for If you’re separating in NSW, your parenting issues are heard in the Federal Circuit and Family Court of Australia (FCFCOA) under the Family Law Act 1975 (Cth). 2) What actually changed in 2024–2025? No default “equal shared parental responsibility.” The presumption that parents should share major long-term decisions was removed on 6 May 2024. The Court now decides whether decision-making should be joint or sole for all or specific major issues, based on the child’s best interests. Clearer decision-making rules. The Act now spells out that, if a parenting order says decisions are joint, each person must consult the other and make a genuine effort to reach a joint decision (new s 61DAA). A simplified “best interests” test. Section 60CC was streamlined. Safety is prioritised; the Court considers the child’s views (in a developmentally appropriate way), needs, relationships, capacity of carers, and—where relevant—cultural considerations for Aboriginal and Torres Strait Islander children. Information-sharing for safety. New provisions improve information-sharing between state child protection, police and family law courts so risks are identified earlier. Pre-action dispute resolution tightened (June 2025). The Court can now more robustly enforce compliance with s 60I (trying Family Dispute Resolution first or having a valid exemption) and may reject a filing that doesn’t comply. A Genuine Steps Certificate is also required. 3) The legal options: plan, consent orders, or orders after a hearing Parenting plan (good for cooperation; not enforceable) A parenting plan is a written, signed agreement that can cover living arrangements, time, changeovers, holidays, decision-making and communication. It’s flexible and can be updated by agreement, but it is not legally enforceable like a court order. (Courts can consider a recent parenting plan when making orders.) Consent orders (fastest way to make it binding) If you agree, you can apply for consent orders so your agreement becomes enforceable parenting orders without going to a hearing. The Court must still be satisfied the orders are in the child’s best interests. Parenting orders after a hearing (when you don’t agree) If you can’t agree (or there are urgent risk issues), the Court can make parenting orders covering where the child lives, how they spend time/communicate, and who makes major decisions (joint, sole, or by specific topics such as education or health). Who can apply? Parents, the child, grandparents and any other person concerned with the child’s care, welfare and development can apply for parenting orders. 4) The “best interests of the child” test (how judges decide) Courts must put the child’s safety and welfare first. Under s 60CC, the judge weighs factors including safety, the child’s views (appropriate to age/maturity), the child’s needs and relationships, each carer’s capacity, and (for Aboriginal and Torres Strait Islander children) connection to family, community and culture. There is no automatic rule that equal time or equal decision-making is best. 5) Decision-making responsibility after the reforms Orders can now allocate decision-making as joint or sole for all major issues or specific issues (for example, health only, or schooling only)—s 61D(3). Where joint decision-making is ordered, parties must consult and make a genuine effort to reach agreement—s 61DAA. Practically, schools and doctors can act on a decision communicated by someone with decision-making responsibility without first proving a joint decision was made. 6) Before you file: mediation (Family Dispute Resolution) and certificates Except in urgent or risk situations (e.g., family violence, child abuse, or impracticability), you must attempt Family Dispute Resolution (FDR) and file a section 60I certificate. From 10 June 2025, the Court can reject your application if you don’t have a valid certificate or exemption. You must also file a Genuine Steps Certificate confirming you tried to resolve the dispute. Tip (NSW): If you need help finding FDR services or to check exemptions, call the Family Relationship Advice Line on 1800 050 321. 7) Safety first: risk notices, information-sharing and the Lighthouse pathway When parenting orders are sought, parties must file a Notice of Child Abuse, Family Violence or Risk. The Court can then request information from state agencies (police/child protection) to assess risk early and triage the case under the Lighthouse model. 8) Evidence in parenting cases: reports and the child’s voice The Court may order: a Child Impact Report early in the case (short, child-focused assessment to guide interim steps), and/or a Family Report (more comprehensive assessment used toward final hearing). In complex matters, the Court may appoint an Independent Children’s Lawyer (ICL) to promote the child’s best interests. 9) Common scenarios Relocation or travel Moves within Australia or overseas are decided case-by-case on best interests and practical proposals. If there’s a risk of international removal without consent, an Airport (Family Law) Watchlist order can restrain departures; recovery orders exist if a child isn’t returned on time. When family violence is alleged Safety is paramount. The Court has information-sharing powers and special rules around cross-examination and case management to protect victims. File the risk notice and get advice promptly. 10) Enforcing orders (contraventions) and recovery If orders are breached, options include make-up time, variation, costs orders, community service, fines, or in serious cases imprisonment. Alleged breaches are triaged in the National Contravention List. For a child not returned as ordered, apply urgently for a Recovery Order. 11) Changing arrangements later (“Rice & Asplund”) Final parenting orders are meant to provide stability. To change them later, the Court first considers whether there’s been a significant change of circumstances (the Rice & Asplund principle) before reopening the case. If that threshold is met, the Court again applies the