Safer, fairer outcomes for women from the Small Claims Property Pilot

An independent evaluation has found that lawyer-assisted mediation for separating couples with a small amount of assets or debt can help achieve a quicker, safer and less stressful resolution of their legal issues.

The Small Claims Property Pilot was launched in January 2020 with funding allocated to legal aid commissions around the country by the Australian Government. It provides grants of legal aid for eligible clients with small amounts of property to divide after separation.

‘Similar to other legal aid commissions, the property pilot at Victoria Legal Aid [VLA] has experienced strong demand since it began. It provides people who may not have been able to afford a private lawyer with a chance to access lawyer-assisted mediation through VLA’s Family Dispute Resolution Service (FDRS) to claim a fair share of property after separation’, said Leanne Sinclair, Acting Associate Director, Family Law.

‘People who have experienced family violence are at a higher risk of poverty because it is often too difficult or dangerous to secure a fair share of property or finances.'

'We’re pleased to see such a positive evaluation, that shows the scheme is particularly helpful for women leaving family violence relationships to begin to recover financially’, she said.

The evaluation from the Australian Institute of Family Studies found the property pilot was particularly effective for people experiencing family violence, economic abuse and where there is inequality in bargaining power or risk of economic hardship arising from an unresolved property dispute.

The pilot demonstrated:

• greater access to affordable legal services to assist people to achieve timely, affordable and fair property settlement outcomes following separation;
• greater access to property settlement outcomes following separation; and
• improved financial wellbeing and stability, including alleviated economic hardship and financial stress.

‘The [Legal Aid Commission] trial is providing access to a legal process for a client base who had not previously had access, and that the benefits for these parties went beyond economic benefits, to intangible social ones, including the ability to ‘move on’ from a violent and toxic relationship, with finalised property and financial arrangements that were identified as fair and/or commercially sound and having access to services and supports within the LAC Trial’ – AIFS Evaluation.

Around 80 per cent of cases that had a mediation conference came to an agreement, showing the scheme is an effective and efficient way of resolving family law property matters.

The AIFS evaluation also found that for every $1 invested in the Property Pilot, $4.69 worth of ‘social value’ was returned.

‘The evaluation found clients were connected with effective referrals and supports such as family violence services, financial counselling and tenancy assistance services. These wrap-around services can assist victim-survivors and their children to recover from violence and ensure longer term safety,’ said Leanne.

The evaluation supports the implementation of the scheme on an ongoing basis.

More information

Read the Australian Institute of Family Studies Evaluation of the Lawyer-assisted Family Law Property Mediation: Legal Aid Commission Trial.

Read the Australian Institute of Family Studies Evaluation of the Small Claims Property Pilot – Priority Property Pools Under $500,000.