Financial Control in Divorce: How It Affects Your Property Settlement in Australia

~ Not legal advice ~ just great information

When you’re going through separation or considering it, you’re probably focused on the big pieces: the house, the bank accounts, the parenting plan. But what often gets overlooked is how one partner, sometimes subtly, sometimes overtly, controls the finances. That control doesn’t just restrict money. It affects what you contributed, what you can claim, and ultimately, what you’re entitled to when the property is divided.

Why This Matters Now

• According to the Australian Bureau of Statistics (ABS), 16 % of Australian women and 7.8 % of men report having experienced economic abuse by a partner since the age of 15. Source: ABS - Partner Violence, 2023.

• The same ABS survey also found about two-thirds of women (69% or 596,700) who moved out of the home when the relationship with their violent previous partner finally ended left property or assets behind.

These are not just ‘relationship issues’, they’re legal and financial risks that affect your future.

The Hidden Mechanics of Financial Control

Financial control can look innocuous: “I’ll take care of the money,” “You don’t have to worry about the bills,” or “I’ll handle the investments.” But, in financial control cases, behind that can be:

• Hidden debts in your name

• Assets you had no visibility of or access to

• Transfers, redraws, or spending you didn’t approve

• Employment sabotage or pressure to leave paid work

How It Plays Into Separation and Property Division

In Australian family law:

• Your contributions are measured across financial, non-financial, and future-needs categories.

• When one partner has controlled finances, it can distort both contributions and needs and the court can take this into account.

• The Family Law Amendment Act 2024 (Cth) (effective June 2025) makes significant changes to the framework for resolving the property and financial aspects of relationship breakdown. For instance, the effect of family violence is now an explicit relevant consideration in determining the division of property and finances following breakdown of a relationship. It also expressly captures ‘economic or financial abuse’ within the definition of family violence, and identifies dowry abuse as an example of conduct that might constitute economic or financial abuse.

Lawyers and courts must actively consider the effects of financial control in the context of a separation and division of assets.

What You Can Do

1. Document everything. Keep bank statements, messages about money, evidence of exclusion, and account histories.

2. Ask the right questions.

   • Do I know every asset, debt, or investment we hold?

   • Do I have access to accounts, super, or loan records?

   • Was I prevented from earning or saving?

3. Consider in the context of your settlement.
   Even in cooperative divorces, consideration of financial control can change how contributions are valued and settlements adjusted.

4. Speak with your lawyer early.
   Explain the control in practical terms, whether that be by way of lost opportunities, barriers to work, missing financial transparency, so it’s legally recognised.

The Takeaway

Financial control has real legal and financial consequences in Australian family law. If this sounds familiar, raise it early.