Common Family Law Issues Faced by Sydney Families

If you are going through a separation in Sydney, you are probably dealing with more than one legal issue at the same time. Most families do. Divorce, parenting arrangements, property division, and child support rarely happen in isolation.



This article breaks down the most common issues that come up and what the current law says about each one, including the significant changes that took effect in 2024 and 2025.

Divorce: What It Does and Does Not Cover

A lot of people are surprised to discover that divorce in Australia only deals with ending the marriage itself. It does not automatically sort out property, finances, or parenting arrangements.

To apply for divorce, a couple must have been separated for at least 12 months and one day. Australia uses a no-fault system, so the court does not consider why the marriage ended.

As of 10 June 2025, the requirement for couples married for less than two years to present a reconciliation certificate was removed. Anyone applying for divorce now follows the same process, regardless of how long they were married.

Parenting Arrangements: What Changed in May 2024

Parenting disputes are among the most emotionally difficult matters families face. They are also where the law changed most significantly in recent years.

From 6 May 2024, the Family Law Amendment Act 2023 introduced the biggest reforms to parenting law in Australia since 2006. These changes apply to all new and existing matters where a final hearing has not already started.

No More Presumption of Equal Shared Parental Responsibility

Previously, the law started from the assumption that both parents should share equal responsibility for major long-term decisions about their children. That presumption has been repealed.

Courts now decide parenting arrangements based purely on what is in the best interests of the child, using a streamlined set of considerations. Equal time or significant time with each parent is still possible, but there is no longer a starting presumption that this is the right outcome.

What Courts Now Consider

When working out what arrangement serves a child's best interests, the court looks at six main factors:

• The safety of the child and each person caring for them
• Any history of family violence, abuse, or neglect involving the child or a person caring for them 
• Any views expressed by the child
• The developmental, psychological, emotional, and cultural needs of the child
• The capacity of each parent to meet those needs
• The benefit of the child having a relationship with parents and other important people, where it is safe
• Any other relevant circumstances specific to the child

For Aboriginal and Torres Strait Islander children, the court must also consider the child's right to connect with and maintain their culture, community, country, and language.

Changing Final Parenting Orders

If final parenting orders are already in place, the court will not reopen them unless there has been a significant change in circumstances and it is in the child's best interests to reconsider. This principle, known in legal circles as the rule from Rice v Asplund, is now codified in section 65DAAA of the Family Law Act. 

Property Settlement: Significant New Rules from June 2025

Property settlement is one of the most contested and financially significant issues that families deal with after separation. In Sydney, where property values are high, getting this right matters a great deal.

From 10 June 2025, the Family Law Amendment Act 2024 codified a four-step process for determining how property is divided. This process was already used by courts, drawn from case law, but is now written into the statute. 

The Four-Step Process

1. Identify and value all assets, liabilities, and financial resources belonging to both parties, including superannuation
2. Assess the contributions each party made, covering financial contributions, non-financial contributions, and contributions as a homemaker or parent
3. Consider each party's current and future circumstances, including age, health, income capacity, care of children, and the economic effect of any family violence
4. Determine whether it is just and equitable to make any order at all, and if so, what that order should be

The court is not automatically required to divide property. It must first be satisfied that making an order is just and equitable in the circumstances.

Family Violence Now Affects Property Division

This is a major shift. Previously, courts could consider family violence in property matters, but it was not mandatory. From 10 June 2025, the court must consider the economic effect of family violence when assessing contributions and future circumstances.

If one partner's ability to work, earn, parent, or contribute financially was limited because of family violence, including economic or financial abuse, that must now be factored into the division. Controlling access to money, hiding assets, or forcing financial dependency are all recognised under the expanded definition of family violence in section 4AB of the Family Law Act.

Mandatory Financial Disclosure

Both parties are now under a clear statutory duty to disclose all assets, liabilities, income, and financial resources. This duty applies from the outset, including during out-of-court negotiations, not only once court proceedings are filed. 

What About the Family Home in Sydney?

In a city where the median dwelling value regularly sits above $1 million, the family home is almost always the largest asset in a property pool. Courts will consider contributions to the purchase and mortgage, who made non-financial contributions, and what each party needs going forward.

Worth knowing: in New South Wales, transfers made as part of a family law settlement through a court order, consent orders, or a Binding Financial Agreement are exempt from stamp duty under section 68 of the Duties Act 1997 (NSW). 

Superannuation Splitting

Superannuation is treated as property under the Family Law Act and can be split between parties as part of a property settlement. This is often overlooked, particularly in longer marriages where one partner may have significantly more superannuation than the other.

Superannuation is governed by the Family Law (Superannuation) Regulations 2025 (Cth) (which replaced the 2001 Regulations from 1 April 2025), which set out the methods for valuing most types of superannuation interests. The process involves getting information from the relevant super fund, valuing the interest, and then either reaching a formal written agreement or obtaining a court order.

Self-managed superannuation funds (SMSFs) generally need to be valued with the help of an accountant, as the standard valuation methods do not always apply.

Note that the general transfer balance cap increased to $2.1 million from 1 July 2026. Super contributions and caps change annually, so confirm the current limits with a financial adviser before making decisions. 

De Facto Relationships

Couples in de facto relationships have the same rights and obligations under the Family Law Act as married couples when it comes to property settlement and parenting, provided certain eligibility criteria are met.

For de facto property claims in NSW, the relationship generally must have lasted at least two years, or resulted in a child, or one party must have made significant contributions to the other's property.

The time limit for making a property settlement claim as a de facto couple in NSW is two years from the date the relationship ended. For married couples, it is 12 months after a divorce order is made.

Where Do Sydney Families Start?

Most family law matters are resolved without a final court hearing. The Federal Circuit and Family Court expects parties to genuinely attempt Family Dispute Resolution (FDR) before proceeding to court on parenting matters. An FDR certificate from an accredited practitioner is now a mandatory requirement before most parenting applications are accepted for filing.

Getting clear on which issues apply to your situation early on and speaking with a family lawyer experienced in Sydney matters helps you understand your options before decisions are made for you.