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For many people leaving a relationship, separation is not only emotionally difficult. It can also expose years of financial control, hidden debt, lost income, or limited access to money.
For years, property settlements after separation were largely viewed through a financial lens. Courts considered who earned the most income, who brought assets into the relationship, who paid the mortgage and who cared for the children.
While those factors remain important, Australian family law is increasingly recognising that financial abuse and family violence can leave lasting economic consequences that continue well beyond the end of a relationship.
We chatted with Pascale Legal, Firm Principal and Director, Angelina Pascale and here’s what she had to say.
What has changed under the 2025 family law reforms?
“Importantly, the family law reforms that commenced on 10 June 2025 now make it clear that the economic effect of family violence must be considered where relevant in property and financial matters,” Angelina said.
She said the reforms represent an important shift in how property settlements are considered in family law.
Rather than looking only at bank balances, assets and direct financial contributions, the Court may now also consider how family violence has affected a person’s financial position, earning capacity, contributions or future needs.
What does financial abuse actually look like?
The reforms acknowledge that family violence is not limited to physical harm.
Economic or financial abuse can take many forms, including controlling household finances, restricting access to money, preventing a partner from working or studying, accumulating debt in another person’s name, monitoring spending, withholding financial information, threatening financial ruin after separation or forcing financial dependence.
In some relationships, one person may have little or no access to bank accounts, may be required to justify every purchase, or may feel unable to leave because they have been financially isolated for years.
How can financial abuse affect someone after separation?
Angelina said these situations can leave people financially disadvantaged long after the relationship has ended.
“As a Family Lawyer in South Australia, I regularly speak with people who leave relationships with far less financial security than they otherwise would have had but not because they failed to contribute, but because control, intimidation, or economic abuse affected their ability to work, access money, build assets, or make independent financial decisions during the relationship,” she said.
The impact can be significant. Someone who was prevented from working may lose years of career progression, superannuation growth, professional development and future earning capacity.
Others may leave a relationship with damaged credit, limited savings, hidden debts or little financial independence.
Why were these experiences not always reflected in property settlements?
Historically, many people felt these experiences were not adequately recognised because property settlements often focused heavily on direct financial contributions and asset division.
That meant the long-term economic effects of abuse, such as lost income, limited access to money or reduced earning capacity, could be difficult to properly reflect.
The 2025 reforms aim to address that gap by recognising that family violence can create genuine economic disadvantage.
Does this mean family violence automatically changes a property settlement?
Angelina said the changes do not mean every allegation of family violence will automatically alter the outcome of a property settlement.
They are also not designed to financially punish one party.
Instead, where relevant, the Court must consider whether family violence has affected a person’s contributions, financial position, earning capacity or future needs when determining what outcome is just and equitable.
Family law is not intended to operate as a punishment system. Its role is to achieve outcomes that are fair in the circumstances of each case.
Why is the recognition of economic abuse so important?
Angelina said the reforms reflect a broader understanding of how abuse can manifest within relationships.
“Not all abuse leaves bruises. Sometimes the harm is reflected in depleted savings, lost employment opportunities, hidden debts, financial dependency, or years spent without economic autonomy,” she said.
The legal recognition of economic abuse is an important step forward, both socially and legally. It reinforces that financial control is not simply a disagreement about money, but in some circumstances can constitute family violence.
What should someone do if they are separating and concerned about financial abuse?
Navigating a separation, let alone dealing with property settlements and potential financial abuse, can be overwhelming.
A lawyer can help you understand your situation, your options, and how to navigate your case. If you are going through a separation and are concerned about financial abuse, obtaining legal advice early can make a difference.
As awareness continues to grow, the reforms may provide reassurance for people rebuilding their lives after separation. Property settlements are about more than bank balances and balance sheets. Increasingly, the law is taking into account the real-life financial consequences of abuse and control.
If you would like to discuss your options, contact the Pascale Legal team on (08) 8250 0404, or visit their website.
Disclaimer: This article contains general information only and should not be taken as legal advice. For support relating to domestic, family or sexual violence, contact 1800RESPECT on 1800 737 732.
