How Does Coercive Control or Financial Abuse Affect a Property Settlement?

Financial abuse is rarely loud. It is the quiet control of money, information and decisions — and it does not simply stop at separation. A careful guide to how it can affect a property settlement, and what helps.

Financial abuse is rarely loud. It is the quiet control of money, information and decisions, and it does not stop at separation. For many Victorians, it shapes the property settlement itself: what they know, what they can access, and how confident they feel making some of the biggest financial decisions of their life.

Since June 2025, the law has caught up with that reality. The Family Law Act amendments now explicitly require courts to consider financial abuse and coercive control when working out a just and equitable property settlement — a change most separating Victorians don’t yet know exists, let alone how to use.

Lauren Wilson, Managing Director and Founding Principal of Village Family Lawyers and an AIFLAM Nationally Accredited Mediator, has spent years working with clients across the Mornington Peninsula and Mount Eliza through exactly this pattern. “This is not about blame, and it is not about drama,” she says. “It’s about understanding how financial control can affect a property settlement, and what the law now does about it.”

Key Takeaways:

  • A legal shift, not just an attitude shift. Since June 2025, the Family Law Act has explicitly required courts to consider financial abuse and coercive control when determining property settlement outcomes.
  • Financial abuse has a recognisable pattern. Controlling access to money, building debt in someone else's name, concealing assets and blocking employment are all forms of financial abuse that can affect the resources available to each party after separation.
  • It can change the numbers. Courts can adjust a property settlement to reflect the financial impact of coercive control, which can mean a larger share of the property pool for the person affected.
  • You don't need a police report to be heard. A family violence order or police report is not required for a court to consider financial abuse in your settlement — the pattern of behaviour is assessed on its own merits.
  • Resolution is still possible. Village Family Lawyers takes a resolution-first approach to financial abuse and coercive control matters, supporting clients through mediation where it is safe and appropriate, with preparation designed specifically for power imbalance.

What Changed in the June 2025 Family Law Act Amendments

Before June 2025, family violence, including financial abuse, could sometimes be raised in a property settlement, but the law didn’t name it as a factor courts were required to weigh. Whether it was taken into account often depended on how it was argued, not whether it happened.

The 2025 amendments changed that. Financial abuse and coercive control are now named explicitly as factors a court must consider when deciding what is “just and equitable”, the legal standard behind every property settlement. A pattern of controlling money, information or decisions is no longer something a court might consider. It’s something a court must weigh, alongside contributions and future needs.

For Village Family Lawyers’ clients across Mount Eliza, Malvern and the wider Mornington Peninsula, this is the most significant development in this area of family law in years, and one most people going through separation have not yet heard about.

What Financial Abuse Looks Like — In Family Law Terms

Financial abuse, sometimes called economic abuse, is recognised as a form of family violence. It doesn’t require raised voices or physical harm to be real, and it rarely announces itself as “abuse” while it’s happening.

In family law terms, it typically includes controlling access to bank accounts and financial information, accumulating debt in the other person’s name without their knowledge, concealing assets or income, and preventing someone from working or building financial independence. Sometimes it’s subtler still, every financial decision made unilaterally, or a climate where questions feel unwelcome.

The dynamic rarely ends at separation. One person often still holds most of the knowledge, the documents and the control, while the other is asked to negotiate a settlement they cannot yet clearly see. Naming that pattern accurately, in the language the law now uses, is the first step toward addressing it.

Coercive Control: How the Pattern Is Now Recognised Under Australian Law

Coercive control describes a pattern of behaviour, not a single incident: sustained control over a person’s decisions, finances, movements or relationships that, over time, limits their freedom and independence. The June 2025 amendments recognise it alongside financial abuse specifically because the two so often work together, control over money is frequently how coercive control is exercised and maintained. That matters for property settlement because a pattern is often harder to demonstrate than a single event. The law now gives that pattern proper standing, so a court can weigh sustained control across the whole relationship rather than needing one dramatic moment to point to.

How a History of Financial Abuse Can Affect Your Property Settlement

A property settlement is built around what is “just and equitable” given the full picture, each party’s contributions, financial and non-financial, and their future needs. A documented history of financial abuse or coercive control now sits inside that assessment directly.

In practice, this can mean the settlement reflects the disadvantage the affected party experienced: reduced superannuation or savings, lost earning capacity, or debt accumulated without their knowledge or consent. It doesn’t automatically produce a particular outcome, every matter is assessed on its own facts, but the pattern itself is now a legitimate part of the settlement conversation, not something quietly set aside.

What Evidence Do You Need – and What Can You Do Right Now?

This is often the first fear that surfaces: “I don’t have proof.” You do not need a family violence order, a police report, or a folder of evidence prepared in advance for a court to consider financial abuse in your matter. The pattern is assessed on its own merits, drawing on the documentation that does exist and what can be obtained through the process itself.

Both parties in a family law matter must give full and frank financial disclosure, every account, asset, debt and income source. Where one person has controlled the information, disclosure is one of the most practical tools available to bring the real picture into view, with formal steps available if it’s incomplete or resisted. Where assets may be hidden or a business or trust is involved, Village Family Lawyers connects clients with forensic accountants and valuers through The Village Circle.

The single most useful thing you can do right now is start gathering what you have, bank statements, account records, correspondence about money, and get advice before agreeing to anything. The way a property settlement is structured shapes your financial position for years afterwards, and it is very difficult to undo once finalised.

Mediation After Financial Abuse: When It Works, When It Doesn’t

Mediation is not automatically off the table after financial abuse, but it is also not automatically the right next step, and Village Family Lawyers does not treat it as a default recommendation. Lauren Wilson and the team assess each client’s situation individually, because the right pathway depends entirely on what actually happened and how safe and viable it is to negotiate directly.

Where mediation is appropriate, it can be set up with real safeguards: separate rooms, shuttle negotiation where the parties never sit together, attending online, or lawyer-assisted mediation, where you have legal support with you throughout. Village Family Lawyers’ Family Law Mediation Support is built around exactly this kind of preparation, understanding your legal position, your financial picture and your goals before you’re ever in a room, virtual or otherwise, with the other party. No process should ask you to agree to anything before you feel informed and genuinely ready.

Understanding Where You Stand Is The First Step Forward

If any of this sounds familiar, you don’t need to have it all worked out before you reach out. Village Family Lawyers works exclusively in family law and takes a resolution-first, discreet approach, moving at a pace that feels safe and helping you see the full financial picture before you decide anything.

An Initial Consultation with Village Family Lawyers is a full, private conversation about your circumstances and options, available in person at Mount Eliza or Malvern, or online across Victoria.

Frequently Asked Questions

Does financial abuse affect how property is divided?

Village Family Lawyers advises that yes — under the June 2025 Family Law Act amendments, courts are now required to consider financial abuse as a relevant factor when determining what is a “just and equitable” property settlement. This can result in an adjustment to reflect the financial disadvantage caused.

What counts as financial abuse in family law?

Financial abuse in a family law context includes controlling access to money, forcing debt into the other person’s name, concealing assets or income, and preventing employment. Village Family Lawyers assesses whether a pattern of financial control applies in your situation as part of initial advice.

Do I need a family violence order for coercive control to affect my settlement?

No. Village Family Lawyers advises that a protection order or police report is not required — courts can assess evidence of coercive control and financial abuse on its own merits, drawing on bank records, communications and other documentation of the pattern of behaviour.

Can I still go to mediation if I've experienced financial abuse?

Village Family Lawyers supports clients through mediation where it is appropriate and safe, with specific pre-mediation preparation designed to address power imbalance. Not every situation is suitable for mediation — Lauren Wilson assesses each client’s circumstances individually to determine the right pathway.

What should I do first if I think financial abuse applies to my situation?

Contact Village Family Lawyers for an initial consultation. Documenting the pattern early — bank statements, account records, correspondence — strengthens your legal position from the outset, whether the matter goes to mediation or court.

Is coercive control only relevant if we go to court?

No. Understanding how financial abuse and coercive control affect your legal position is equally important in mediation — it informs what a fair outcome looks like and helps ensure you don’t settle for less than the law entitles you to. Village Family Lawyers provides this clarity before any mediation begins.

Understanding where you stand is the first step back to solid ground

If any of this feels familiar, you do not need to have it all worked out before you reach out. The first step is simply understanding where you stand, and that one step often changes how the whole situation feels.

An Initial Consultation (90 minutes, in person or online) provides a full, private conversation about your circumstances and options, and you leave with a clear action plan. If you would prefer a smaller first step, a free 15-minute Discovery Call is a calm, no-pressure way to begin.

 

Either way, our role is the same: to help you see the full picture, understand your choices, and move forward with more certainty and more control. Book a confidential consultation with Village Family Lawyers — offices in Mount Eliza and Malvern, with phone and video available across Victoria.

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