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Divorce Rates Decline as Cost of Living Increases

July 10, 2025 2:15 pm in by

Divorce rates in Australia have reached their lowest point since the mid-1970s, according to a new report by the Australian Institute of Family Studies (AIFS) and family law specialist Kylie Burke.

This decline coincides with a growing concern among separating couples, who often find themselves asking, “Will either of us be able to afford life after this?”

Kylie Burke, a partner at Burke Mangan Lawyers, noted that financial pressures are increasingly forcing couples to stay together despite their desire to separate. “Dividing assets is just one part of the equation now,” she explained.

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“It’s also about ensuring both parties can afford to live independently, support their children, and plan for their financial futures.” Rising costs, such as rents increasing by 30% in some capital cities and stricter lending conditions, are making it harder for individuals to move on post-separation.

In many cases, couples continue living under the same roof after separation—a situation lawyers refer to as being “financial flatmates,” which comes with significant emotional and legal risks.

Government data highlights a clear downward trend in divorce rates. In 2023, there were 2.3 divorces per 1,000 residents aged 16 and over, compared to 3.4 per 1,000 at the turn of the millennium.

The introduction of no-fault divorce laws in 1975, which removed the need to prove adultery or desertion, led to an initial sharp drop in divorce rates by nearly half over the following decade. Since then, the rates have continued to gradually decline, mirroring the steady decrease in the overall marriage rate.

Senior Research Fellow at AIFS, Dr. Lixia Qu, attributed this trend to several societal shifts. “Fewer people are marrying, couples are marrying later in life, and more are living together before marriage,” she said.

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However, Dr. Qu cautioned that the declining divorce rate does not necessarily equate to longer-lasting relationships. Instead, it reflects changing patterns in how people form and maintain partnerships over time.

As these factors reshape family dynamics across Australia, the financial and emotional complexities of separation remain a growing challenge for many couples.

More in the full reports here:

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