Under the Family Law Act 1975, property settlements are decided based on how much each party has contributed, in both financial and non-financial terms, to the relationship. The conduct of partners during the course of a relationship is not generally a relevant factor. However, if there has been family violence during a relationship which has had a major impact on the victim, one consequence of this may be an adjustment of property orders.

2025 changes

In June 2025, the definition of ‘family violence’ in the Family Law Act 1975 was amended to include:

• economic and financial abuse;
• unlawfully depriving a family member of their liberty; and
• preventing a family member from keeping their connections with family.

These changes mean that courts may now make adjustments to financial matters based on family violence consisting of economic abuse and coercive control, even in the absence of physical and other forms of violence.

This new definition of family violence is likely to significantly alter the application of the test in Kennon and Kennon, which has governed the treatment of family violence by family courts since the 1990s.

Kennon and Kennon

The 1997 Family Court of Australia decision of Kennon and Kennon considered whether domestic violence could alter the outcome of a property settlement. In that case, the court found that the financial consequences of family violence could be assessed when determining financial matters if the following three elements were present:

1. There was a course of violent conduct;
2. The violent conduct had a discernible impact on the victim; and
3. The victim’s contributions to the relationship had been significantly more arduous because of the domestic violence.

The judge in Kennon made it clear that it was not sufficient for a party in this situation to make generalised allegations of violence: the victim had to provide separate particulars for each alleged instance of violence  If the violent conduct could be proved and a causal relationship could be established between the violence and the victim’s difficulty in making contributions to the relationship, an adjustment could be made.

Assessment of the financial consequences of domestic violence is based on the victim’s physical and mental health, their financial circumstances, and their capacity to obtain meaningful employment. An adjustment will only be made where the court considers there would be significant financial consequences for not making an adjustment and where there is significant evidence of domestic violence.

The legislation

Section 75 of the Family Law Act sets out the matters that the court can take into account in deciding when to award spousal maintenance. The relevant factors under this provision are:

1. the parties’ age and health;
2. the parties’ responsibilities for supporting children or others;
3. the parties’ income and financial resources; and
4. whether the parties have a reasonable standard of living.

Spousal maintenance is awarded where there is inequality in financial means and when one partner is unable to adequately support themselves after separation.

Section 79 of the Family Law Act provides that a court can make any order it considers appropriate when deciding a property settlement. Accordingly, property matters are decided in a discretionary manner. Many factors that courts can consider when making property orders are not specified in the Act. The impact of domestic violence on a property settlement is one such factor.

What are the consequences for victims of family violence?

The consequences of the Kennon decision are that a party to a property settlement can seek an adjustment based on the argument that his or her contribution to the relationship was made ‘more arduous’ by violent conduct by the other partner.

A party cannot receive an adjustment purely because they were the victim of serious domestic violence: there must be evidence that the violence significantly impacted their ability to contribute to the relationship, making their contribution more arduous.

If a person was the victim of economic or financial abuse, this may have seriously impacted their ability to make financial contributions to the relationship – for example, because their partner had sole control of the finances or prevented them from working.

Kennon after 2025

The Kennon decision has had little effect on property divisions ordered by the family courts. However, with the 2025 expansion of the definition of family violence in the Family Law Act, the Kennon test is likely to have a different scope and application and to be applied more consistently in future.

The Kennon decision has been criticised for relying on a narrow and limited definition of family violence and for failing to take into account the complexities of abusive relationships. The 2025 changes aim to bring the family law system’s treatment of family violence into accord with international developments, and to contribute to a fairer and more equitable system.

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