Future Needs Adjustment in Property Settlement Matters

When a relationship ends, dividing property is rarely about splitting everything down the middle. Australian family law asks a broader question: what is fair, looking at both where each person has been and where they are heading. The second part of that question, often called "future needs", is where the law looks forward. It considers how each person is placed to support themselves after separation, and whether the division of property should be adjusted to reflect that.

This article explains how future needs are assessed under Australian family law, including the changes that took effect on 10 June 2025. It is general information only and not legal advice.

What "future needs" means

After a couple separates, a court (or the parties themselves, by agreement) works through a structured process to decide how property should be divided. As a guide, this involves identifying and valuing the asset pool, considering each person's contributions, considering their current and future circumstances, and then standing back to ask whether the overall result is just and equitable.

Future needs sit in that third stage. Two people might have contributed roughly equally during a relationship, yet finish it in very different financial positions. One may have stepped back from paid work to raise children. One may be older, in poorer health, or have less earning capacity. The law allows the property division to be adjusted to reflect these differences, so that the outcome is fair rather than simply equal.

A recent change worth knowing

For many years these considerations were known as the "section 75(2) factors", drawn from the part of the Family Law Act 1975 dealing with spousal maintenance. From 10 June 2025, following the Family Law Amendment Act 2024, the Act was restructured. The future needs considerations now sit directly within the property sections of the Act: section 79(5) for married couples and section 90SM(5) for de facto couples. They are described as "considerations relating to current and future circumstances".

The practical effect for most people is modest. The factors a court weighs are largely the same as before, but they are now set out more clearly and in one place, and a few considerations have been written into the law explicitly. If you read older material referring to "section 75 factors", it is describing the same idea under the previous structure.

What courts consider

When looking at each person's current and future circumstances, a court takes into account a range of matters, so far as they are relevant. These include:

• The age and state of health of each person.
• The income, property and financial resources of each person, and their physical and mental capacity for appropriate gainful employment.
• Whether either person has the care of a child of the relationship who is under 18, including the need to provide that child with appropriate housing.
• Commitments each person has to support themselves, a child, or another person.
• Eligibility for a pension, allowance or benefit.
• A standard of living that is reasonable in all the circumstances.
• The duration of the relationship and the extent to which it has affected a person's earning capacity.
• Any child support that one person is providing or is liable to provide.
• The financial circumstances of any new relationship a person has entered into.

The 2024 amendments also added explicit references to a few matters. Courts now expressly consider the effect of family violence on a person's circumstances, any significant wastage of property caused intentionally or recklessly by a party, the liabilities of each person and how those debts arose, and the housing needs of any children under 18.

Earning capacity, not just current income

A common point of confusion is the difference between what someone earns now and what they are realistically able to earn. The law looks at earning capacity, not just the figure on a recent payslip.

Consider someone who earned a substantial salary before having children, then moved to part-time work to manage caring responsibilities. Their current income may be much lower than their underlying capacity, and it may take time to rebuild. A court can take that gap into account. Equally, a person who has not worked for years but could reasonably return to the workforce may be expected to do so over time.

Caring responsibilities

Where one person will have the main day-to-day care of children after separation, that responsibility affects both their ability to earn and their need for stable housing. This can support an adjustment in their favour, recognising the ongoing cost and time involved in raising children, alongside the need to house those children appropriately.

Age, health and long-term security

Age and health matter because they shape how much working life a person has ahead of them. A person in their late fifties generally has less time to rebuild assets and superannuation than someone in their thirties. Ongoing health conditions that limit work, or that bring continuing costs, can also be weighed. The aim is a result that gives each person a reasonable footing for the future, not a guarantee of identical wealth.

How an adjustment works in practice

Future needs are not assessed by a formula. There is no fixed percentage attached to having children, being older, or earning less. Instead, a court weighs all the relevant matters together and decides what adjustment, if any, is fair in the particular case. Any percentage shift is the product of judgement applied to the specific facts, not a tariff.

The final step is always the same question: looking at everything, is the overall division just and equitable. A court must be satisfied that it is before making property orders.

Formalising an agreement

Many couples reach an agreement without going to court. There are two main ways to make a property agreement legally binding in Australia.

• Consent orders. You and your former partner agree on the arrangements and ask the Federal Circuit and Family Court of Australia to make them as orders. You are not required to have a lawyer, but the Court recommends getting legal advice first. Consent orders are orders of the Court and are enforceable.
• Binding financial agreement. This is a private agreement made outside court. For it to be binding, each person must receive independent legal advice from an Australian legal practitioner before signing.

Because both options carry lasting legal and financial consequences, it is wise to get independent legal advice before finalising any settlement. A lawyer can help you understand how future needs are likely to apply to your situation.

How Separately can help

Separately gives you a clear, private starting point. By answering questions about your circumstances, you receive an assessment that helps you understand the factors at play, including how future needs might be considered. It is a way to feel more informed and prepared before you talk things through, whether with your former partner or a lawyer. The assessment is general information to support your thinking, not a substitute for advice tailored to you.

Understanding future needs takes some of the uncertainty out of separation. With a clearer picture of what matters and why, you can approach the next conversation with more confidence.