When Sarah finally found the courage to leave her abusive husband Markus, she worried about more than just her physical safety. She was way out-of-practice with the way the world worked. “I had no bank account, no working experience, no kids and no training. He had controlled every aspect of my life. I felt like I had nothing to show for 8 years of my life.” In addition to having to re-learn how to manage many aspects of her daily existence, Sarah worried that she would not be able to show that she deserved anything in the property settlement. Markus had told her that she had given nothing and would get nothing and she suspected he was right.
It is true that ‘contributions’ are a major consideration in the legal process of assessing property entitlements. It is also true that Australian family law courts have struggled to integrate consideration of domestic violence and property settlement entitlements. But this struggle is now easing. Effective from 10 June 2025, mandatory consideration of domestic violence and property settlement is now present in the main Family Law Act itself.
The Foundation: The Kennon Case
Australian family law is part of the civil law rather than the criminal law of our country. As such, it has long been argued that family law must guard its status as ‘no fault’ area of the law. To bring family violence into consideration in property settlements has been seen by some judges as going against this principle: that ‘punishing’ perpetrators financially is not a proper role for the family courts.
Australian courts first explicitly recognised that domestic violence could nevertheless affect property division in the landmark 1997 decision of Kennon v Kennon [1997] FamCA 27 by taking a different tack. This case established that where domestic violence makes a person’s contributions to the relationship significantly more difficult or more ‘arduous’, the court can adjust property settlement in their favour. This focus on the effect of the behaviour on victim-survivor enabled the courts to side-step the issue of perpetrator ‘fault’.
The so-called Kennon principle has three elements:
- Violent conduct occurred between the parties
- The conduct had a “discernible impact” on the victim
- The victim’s contributions were made significantly more difficult due to the violence
Reality Check: Limited Success
But the Kennon principle proved to be very difficult law to implement in practice. The courts limited its application to ‘exceptional circumstances’ in a narrow band of cases, making it challenging for most domestic violence survivors to benefit beyond a very small percentage change, a vague non-quantified provision or, perhaps, not even at all.
An independent review of judgments between 2006 and 2012 revealed some sobering statistics:
- The average adjustment for successful Kennon claims was only 7.3%, if the percentage was specified at all.
- These cases that did ‘succeed’ involved severe, well-documented physical violence with clear evidence of injury
- Many claims failed due to difficulties proving the connection between violence and reduced contributions. Or because the required level of seriousness was not reached.
The Kennon principle, while groundbreaking in its time, proved frustratingly narrow in application. Courts consistently emphasised that the mere occurrence of family violence doesn’t automatically lead to its consideration in a property settlement. There must be specific evidence of how the violence affected contributions or circumstances.
This created a significant gap between the law’s recognition of domestic violence and its practical ability to address the financial consequences for survivors.
What’s Actually Changing in June 2025
The Family Law Amendment Act 2024 represents the most significant reform to domestic violence and property settlement since the Kennon case—mainly not because it creates new legal concepts, but because it makes consideration of family violence mandatory rather than discretionary.
From June 2025, courts must consider:
- The effect of family violence on the relationship – specifically, on how family violence affected someone’s ability to make financial, non-financial, and parenting contributions during the relationship.
- The effect of family violence on current and future circumstances – including the ongoing economic consequences such as reduced earning capacity, medical expenses, and housing needs.
Expanded Recognition of Economic Abuse
For the first time, also, the Family Law Act will include a comprehensive statutory definition of economic and financial abuse as family violence, including:
- Forcibly controlling money or assets, including superannuation
- Sabotaging employment or income potential
- Forcing someone to take on financial or legal liability
- Accumulating debt in someone’s name without knowledge
- Withholding financial support for reasonable living expenses
- Dowry abuse
This addresses one of the key gaps in the previous framework, where financial control was recognised as problematic but not explicitly defined as family violence.
Real-World Impact: What This Means for Survivors
Let’s return to Sarah’s story to understand the practical difference. Under Kennon, Sarah would need to prove that Markus’ controlling behaviour made her contributions to the relationship more ‘arduous’— a word meaning ‘marked by great labour or effort: strenuous’. As Sarah was not permitted by Markus to have much of a life to labour in, she would most likely have struggled to meet this high bar.
Under the new legislation, the court must consider how Markus’ behaviour affected both Sarah’s ability to contribute during the relationship and her current and future financial circumstances. This broader framework may capture situations that fell through the cracks of the narrow Kennon principle.
What the Reforms Actually Address
The legislation specifically defines economic or financial abuse to include:
- Unreasonably denying financial autonomy
- Forcibly controlling money or assets, including superannuation
- Sabotaging employment or income or potential employment or income
- Forcing someone to take on financial or legal liability or status
- Accumulating debt in someone’s name without knowledge
- Unreasonably withholding financial support for reasonable living expenses
The Implementation Challenge
While the legislative changes around domestic violence and property settlement are significant, important questions remain about their practical implementation:
Judicial consistency: Will statutory requirements achieve the greater consistency that case law alone couldn’t provide? Different judges may still interpret the mandatory considerations differently.
Evidence challenges: The fundamental challenge of proving family violence and its impact remains. Documentation and credible evidence will still be crucial for successful claims.
Quantifying impact: Even with mandatory consideration, courts will still need to determine how much the family violence actually affected someone’s circumstances—a challenge that has persisted since Kennon. And how that affect should be recognised in financial terms.
As Tribe Family Lawyers CEO and Founder, Dr Maree Livermore noted recently: “The Kennon principle was never intended as a form of substantive compensation for the damage that family violence does to a person and the new law does not do this either. Bringing the issue front and centre should encourage more DV-related claims and more consistent treatment by the courts. But the actual financial or dollar impact under the new framework we just don’t yet know about.”
Practical Steps for Survivors
Whether dealing with current case law or preparing for the 2025 changes, comprehensive documentation remains essential for domestic violence and property settlement treatment:
Financial control evidence:
- Bank statements showing restricted access
- Employment records showing interference or prevention
- Documentation of forced debt or credit damage
- Records of sabotaged work or study opportunities
Impact documentation:
- Medical records related to violence
- Counselling or therapy records
- Evidence of career disruption
- Documentation of ongoing financial consequences
Safety considerations:
- Police reports and intervention orders
- Evidence of systems abuse or vexatious legal proceedings
- Documentation of children’s exposure to violence
Getting the Right Support
The intersection of a history of domestic violence and property settlement requires expertise in both family law and domestic violence dynamics. The legislative changes add new complexity to an already challenging area of law.
At Tribe Family Lawyers, we understand the practical realities of domestic violence and property settlements. With over 70% of our clients being women who have experienced family violence, we know that survivors need more than just competent legal representation—they need advocates who understand the full impact of abuse.
Our approach includes:
- Thorough documentation of economic abuse and its consequences
- Strategic preparation for both current and upcoming legal frameworks
- Connections to financial counsellors and support services
- Understanding of systems abuse and harmful proceedings
We also recognise that for many survivors, particularly those seeking support through our Family Law Help for Women Australia Facebook group, understanding the law is just the first step in rebuilding their lives.
A More Promising Future
The June 2025 reforms represent a significant step forward in addressing domestic violence and property settlement, even if they build on existing legal foundations rather than creating entirely new concepts.
For the first time, Australian family law will have a comprehensive, mandatory framework for considering domestic violence in a property settlement. While this doesn’t guarantee different outcomes in every case, it does provide clearer guidance for courts and greater certainty for survivors that their experiences will be acknowledged.
The evolution from Kennon’s narrow “exceptional circumstances” to mandatory statutory consideration represents real progress. Combined with the explicit recognition of economic abuse and protections against systems abuse, the reforms offer hope for more just outcomes for domestic violence survivors.
However, the law is only as effective as its implementation. The success of these reforms will ultimately depend on how courts, lawyers, and support services work together to ensure that the recognition of domestic violence in property settlements translates into meaningful financial justice for survivors.
If you’re navigating a property settlement where domestic violence has been a factor, don’t face it alone. Contact Tribe Family Lawyers today for a confidential consultation to understand how these changes may affect your situation and ensure your rights are fully protected under Australia’s evolving approach to domestic violence and property settlements.
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