Pets as Assets

The Consideration of Pets as Assets in Family Law Property Settlement.

Summary

The inclusion of animals—particularly pets—in family law property settlements is a complex and evolving area. Traditionally treated as property, animals are now receiving more nuanced consideration, especially with the introduction of the 2024 Family Law Amendment Bill (effective from 10 June 2025), which formally defines companion animals and distinguishes them from service animals, livestock, and business-related animals. These changes provide clearer legal guidelines for how courts should approach disputes involving pets, reflecting both their emotional significance and varied roles within households.

Defining the Balance Sheet

To understand whether an item can be added to the balance sheet, there first needs to be an understanding surrounding the definitions associated with aspects of the balance sheet. In property settlement, a balance sheet is used to categorise and list the assets and liabilities held by parties. An asset is understood as any resource owned or controlled by an individual that is expected to yield a financial or economic benefit. 

What Are Pets?

There are many categories that pets can fall under. The most common category of pets are companion animals who are kept primarily for an individual’s company or personal entertainment. There are also other pets that would be classified as your working animals such as donkeys or kelpies, livestock animals such as cattle and sheep and laboratory animals such as mice and rats. It is important to distinguish that, under section 9(2) if the Disability Discrimination Act 1992, animals that have received specialised training to assist individuals with disabilities are not considered pets.

The Legal Framework: Asset verses Companion Animal

Historically when the question of pets has been raised, the Australian Courts have considered them as an asset, akin to household furniture or other material possessions. However, as more families are purchasing pets, legislation has needed to be updated.

Case law surrounding this topic outlies the complexities of the Courts ever evolving process when making these decisions regarding companion animals. In the matter of Jarvis & Weston [2007] FamCa 1339 the Court outlined that, due to the emotional value of the companion animal, it would travel with the child between the parent’s houses. However, if there is too much discourse and tension between parties when trying to allocate the companion animal the Court may not come to a decision and leave it to the parties’ discretion as seen in the matter of Arena & Arena (No 4) [2024] FedCFamC1F 22.

As of 10 June 2025, the 2024 Family Law Amendment Bill will be introduced which will define a companion animal and also recognizes the different classifications of pets. The amendments explicitly excluded service animals, agricultural livestock and animals maintained for business or financial purposes from the definition of companion animals.

As per the 2024 Family Law Amendment Bill the definition of a companion animal will be found within subsection 4(1):

Companion animal means an animal kept by the parties to a marriage or either of them, or the parties to a de facto relationship or either of them, primarily for the purpose of companionship, but does not include:

 (a) an assistance animal within the meaning of the Disability Discrimination Act 1992; or

 (b) an animal kept as part of a business; or

 (c) an animal kept for agricultural purposes; or

 (d) an animal kept for use in laboratory tests or experiments.

Due to the new definition of what can be considered a companion animal, there are many new factors that the Court must take into consideration when deciding the current and future circumstances surrounding the companion animal. These proposed amendments as to the Court’s consideration will be found within section 79(5) and section 79(6) of the Family Law Act 1975.

While the inclusion of animals within property settlement remains an evolving area of law, the 2024 Family Law Amendment Bill provides greater clarity regarding companion animals. Further developments in case law and legislative reforms will likely continue shaping how Courts address pet-relate disputes within Family Law.

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.