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Daw, Rowena --- "Gender Bias and Family Law" [1995] ALRCRefJl 4; (1995) 67 Australian Law Reform Commission Reform Journal 14


GENDER BIAS & FAMILY LAW

Two New Family Law Bills may have Unintended Effects

The Equality before the law' report confirmed that gender bias pervades the Australian legal system. Family law, in particular, emerges as a problematic area, with many women complaining that the system has treated them in a way that is inadequate and unfair.

Dr Rowena Daw is a Senior Lecturer in Law at the University of Technology, Sydney. She was Project Manager for the Equality reference from November 1993 until its conclusion in December 1994. She also previously worked on the 1992 Choice of law report (ALRC 58).

In this article, Dr Daw examines the gender bias that occurs when the Family Law Act 1975 attempts to deal with domestic violence and the division of matrimonial property. Two Family Law Reform Bills addressing these issues are discussed.

A major recommendation of the ALRC's report, Equality before the law was that all future Bills be scrutinised by a parliamentary committee to assess their impact on women. As most of the committees, law reform agencies and government departments which initiate and develop legislative policy are dominated by men, it cannot be assumed that they will accurately represent the interests of women, particularly in an area like family law where gender issues are so stark.

The Family Law Act 1975 has been under almost constant re-evaluation since its enactment twenty years ago. At present, there are two Family Law Reform Bills before Parliament. The result of several years work by a Joint Select Committee and the Attorney General's Department, they possibly represent the most fundamental changes in the history of the Act.

The Family Law Reform Bill 1994 addresses custody, access and dispute resolution outside the courts. It aims to end the present win-lose mentality over the custody of children and to encourage parents to cooperate over the responsibility for their children. It also establishes a system of mediation and extends counselling services. The Family Law Reform Bill (No. 2) 1994, at present an exposure draft, deals with the division of matrimonial property. Both Bills raise disturbing issues for women.

Recently the Senate Committee on Legal and Constitutional Affairs conducted hearings on these Bills in which the ALRC gave evidence. The Committee generally supported the Bills, but made recommendations for change which ignored some significant ALRC suggestions.

Domestic violence and family law

During 1993 and 1994, hundreds of women clients and lawyers working with women contacted the ALRC inquiry to complain about the legal system's inept and misconceived treatment of domestic violence. For instance, a survey conducted by the Illawarra Legal Centre in New South Wales, involving 140 women and 43 representatives of community organisations and government departments, found that the inadequacy of the legal system in dealing with issues of violence was the major concern of those interviewed.

The ALRC heard many horrifying stories from women across Australia. A recurring theme was the devastating effects of domestic violence on their self-esteem, which, coupled with a fear of retaliation, deterred women from enforcing their legal rights.

In 1992 I dropped the custody application for my eldest son. It had become obvious to not just me but the solicitors involved, including my husband's solicitor, that if I were to obtain custody of that child, my husband would very likely kill me. I settled for access orders and a property settlement. I settled for less money than I was entitled to, to avoid losing most of it in legal fees. My husband ignored the access orders, continuing to deny me access to my eldest son ... (Confidential, Submission 8)
The Family Court, along with magistrates courts, is more likely than any other court to encounter women who have been the targets of violence. Many cases involve a background of physical or psychological abuse of women by their partners. Evidence of this abuse is often discounted because the courts, wishing to avoid the previous fault-based approach to divorce, are loathe to examine the conduct of partners in marriage. The Act, however, only requires issues of matrimonial conduct to be disregarded in relation to grounds for divorce.

Many women feel that they are not believed by lawyers and judges, particularly in custody and access proceedings. Women who raise allegations of violence have been accused of doing so only to hurt their partner by frustrating his access to the children, rather than out of true fear for their safety or that of their children. A common attitude is that if the violence has been as severe as alleged, the woman should simply have left the relationship. This implies that the woman is not telling the truth and also ignores simple truths, for instance, that it may be financially impossible or very dangerous to leave a violent partner.

[I]t often seems, and I certainly feel, that a woman's experience as a victim and survivor of domestic violence is often trivialised in Courts - both Family and elsewhere. This may be particularly [so] if the woman does not present as the classic victim' - ie, she is determined to regain control of her life, she attempts good grooming, she is clearly articulate and intelligent. None of this means that she is not frightened by her partner and has not been subject to violence, intimidation, threats and harassment at his hands. It will continue to be trivialised as long as the judiciary and court officials - even counsel - are uninformed about domestic violence. (Confidential, Submission 50)
Family Law counsellors also came in for some criticism:
Do other victims of attempted murder have to sit and speak (with their children) to the offender? How would you react, could you be totally normal taking into account years of total control and terror? We are then judged on our willingness to discuss what is best for the child" (Confidential, Submission 50)
Many women complained to the ALRC that their former partners attempted to prolong the abusive control they had exerted during their relationship by making repeated applications for variation of existing orders for access or maintenance. They felt that the legal system was not vigilant enough in checking this abuse of process.
There was and is a great need to protect my daughter. We went through 11 hearings, false allegations, abuse and violence occurring when access took place (when I was convinced by [the] lawyer to send her and see what happens'). My ex-husband started the proceedings ... of access/custody. One working day prior to trial he withdrew. He can start access again at any time, and has indicated he is intending to do so in letters. All I have is my daughter's true wish not to see her father and information of years of violent abusive relationships. I cannot get into court. (S Anchor, Submission 143)
The Illawarra Legal Centre raised the serious problem of conflicting orders. For instance a magistrates court might grant a restraining order to prohibit the husband from entering the wife's premises and the Family Court might grant an access order giving him the right to collect the children from the home. The police are then confronted with contradictory court orders, jeopardising the woman's safety. At present there is no system of cross-checking the orders of state and federal courts. This problem is not addressed by the current Bill which places the onus on the parties the reveal the existence of a restraining order to the court.

Family Law Reform Bill 1994

The Family Law Reform Bill 1994 removes the concept of access, instead providing for contact orders. After much campaigning the Bill directly addresses the issue of family violence. It includes the following features: All these features are commendable. However they are somewhat undermined by other provisions in the Act.

The Bill provides that a child has the right to continuing contact with each parent. The UN Convention on the Rights of the Child qualifies this right with the phrase except if it is contrary to the child's best interest'. This Bill contains no such exception, a fact which may well discourage the court from treating cases of family violence as exceptions to the norm. This may restrict the use of orders such as denying or suspending access, and setting minimum terms of access. As the Women's Legal Service, Brisbane, recently pointed out in its comments on the Bill, it is essential that women leaving violent men be given a real opportunity to establish a new life.' The Bill's insistence on cooperative parenting is not appropriate for these situations.

The second aim of the Bill is to encourage spouses to settle their disputes outside the court system, with the help of approved mediators as well as counsellors. The mediators must comply with regulations which should specify circumstances in which mediation should not occur, for instance where there has been a history of violence. There is no such requirement for the counselling service. However, many women complained that counsellors failed to understand or take seriously the predicament of women who had been subjected to serious ongoing violence. In some cases, joint counselling could be ordered when a woman was afraid to be in the same room as her husband.

To address this problem, the Equality report recommended special training for counsellors and a provision suspending the requirement for counselling or specifying separate counselling where a spouse fears violence from her partner. The Bill does not contain such a provision. Recent incidents of violence associated with counselling sessions demonstrate that this is a matter of urgency.

Inequality of resources is another concern. The move towards mediation is a cost saving measure for the court and for the participants. But the woman who has been in a violent marriage will not be using this service. She, like other women, is likely to be poorer than her husband and, under current restrictions on funding, she is unlikely to receive legal aid. Unless more funds are available for family law, abused women, already the least well served by our system, will be even worse off than they are now.

The recent Senate Committee discussed family violence and contact orders but did not make recommendations on these issues.

Matrimonial property reform

The Family Law Reform Bill (No. 2) 1994 deals with the thorniest of problems - the division of matrimonial property after divorce. The Bill aims to make the law simpler and more user friendly for couples who want to do their own settlements. It does this in three main ways: The ALRC, along with other critics of the Bill, have insisted that the Bill is destined to be disastrous for women, particularly given the emphasis on mediation. Family Law reform must always take account of the socio-economic position of women in our society. The ALRC report Equality before the law made some basic findings about this. It confirmed that women are, on average, poorer then men, have less access to financial resources, make a larger contribution to the unpaid work of the community and have different work patterns than men. It found that almost all single parents are women, that women's contribution in the form of unpaid work is undervalued in the law, and that their work skills are undervalued in the paid work force. The study also reported on the lack of credibility and alienation felt by many women operating in a system staffed predominantly by men. These factors limit womens' access to the courts, their bargaining power in property matters, and their financial position after a divorce.

Research for the earlier ALRC Matrimonial Property report (ALRC 39), Settling Up, clearly showed that separation and divorce often have widely different effects on men and women and that womens' earning capacity, unlike men's, is diminished by marriage, especially a long marriage. As a consequence children, who usually stay with their mothers after divorce, are suffering the effects of poverty.

More recent studies, such as Settling Down (1993), found that the disparity in standard of living between husbands and wives was modified, but not eradicated, after a time.

By three to five years after the separation, 54 per cent of men and 38 per cent of women had repartnered; three years after that proportion had risen to 70 and 52 per cent respectively. ... Almost four in five mothers were initially dependent on social security; they gradually returned to paid employment but, regardless of their source of income, if they stayed single they remained at risk of poverty and had household incomes well below those of their former spouses. This is evidence that children are omitted from the equation when financial settlements are arranged between divorced parents. Their chance of regaining the pre-separation socio-economic status of their parents lies very largely in their mother's repartnering. (Settling Down p 236)
It stated that although women with children were more likely to stay living in the matrimonial home in the longer term, most homes were eventually sold. Housing costs comprised a very high proportion of the sole-mother/family's budget. Being an owner/mortgage holder was more likely among repartnered mothers and among men. Fathers retained earning capacity, shared little or none of it with children and their ex spouse, and usually came out of the divorce able to obtain credit for housing and to service loans.

The study concluded that:

Gender has several very important effects on the economic consequences of divorce. First, in Australian society as in all Western societies, gender determines the major responsibility for children's care, both during marriage and after. Second, gender is associated in many and complex ways with access to education, to paid employment and to wage rates, security, fringe benefits and lifetime earnings. These two factors are inextricably entwined and their operation extends from earliest socialisation, through marriage, child rearing and divorce. Third, the responsibility for income to support children, the major part of which falls to the father in marriage, does not continue after separation. Fourth, the unearned contributions to the marriage economy are inadequately and only notionally considered in divorce settlements, in assessing the true costs of children, in considering the costs to the care given in terms of lost earnings, and in reduced access to employment. (Settling Down p 237)
In the course of the Equality reference the Commission received many submissions from women supporting those conclusions. Women called for legal principles to ensure equality of results for men and women.
A homemaker after giving most of her life to caring for a family, raising children, cleaning the home etc, should not be the one to end up losing her home with no chance of buying another ... Both parties should end up in a more equal position. (J Hanell, Submission 91)
The Family Court does not regard caring for children after divorce as a contribution to the other spouse's superannuation fund. Submissions argued that this is unjust.
Both within and without of the marriage I was performing the role of caregiver to the children while my ex-husband was free of all responsibility ... so although I was not acting as a wife in the years after the divorce I was still very much part of his life providing the care his children required. I feel that ... I should be eligible to share in a percentage of that retirement income acquired both during the marriage and after it ended. (M Flynn, Submission 631)
Many submissions complained that because their husbands controlled the family assets they had managed to conceal their true financial position from the court and had ended up much better off than their wives.
It was shown that my husband was not disclosing his true financial position since a large amount of money from his work and later from his X business (in which I was a partner) was taken by him overseas. His lifestyle could not have been maintained on the level of income he declared to the Court. He failed to show where his extra income came from, yet this was not taken into account by the Court in arriving at the property settlement. The Court should endeavour to trace funds transferred overseas by a partner in marriage for the purposes of avoiding the inclusion of these funds in a property settlement. This should be supported by the Government by way of treaties with other countries. (Confidential, Submission 501)
It is disappointing, then, that the idea to create a separate offence of intentionally failing to disclose assets has been dropped from the reform Bill.

A rethinking of what equality means is needed. The Equality report, drawing on Canadian cases, concluded that substantive rather than formal equality is necessary to provide justice for women. That is to say that to treat men and women the same in all cases may be to ignore social differences, further entrenching disadvantage rather than leading to equality. This was also largely the approach of the 1987 ALRC Matrimonial Property report (ALRC 39).

The Matrimonial Property Report

This Report stated the aims of a good matrimonial property law as follows: The law must strike an acceptable balance between flexibility and predictability, and encourage spouses to settle their property disputes with a minimum of cost and distress. These principles are clearly basic to a reform of family law.

The Report concluded that a strict rule of equal division of property is not a just basis for the law. The proper test is whether the economic hardship arising from the breakdown of the marriage has been distributed as fairly as possible between the family members. The Report decided that it is not the role of matrimonial law to take care of the future needs of those separating, but that it should make adjustments that take account of the financial disparities resulting from the breakdown.

The only relevant disparities are those caused by the allocation between the parties of their responsibility for the future welfare of their children and by the effect of the marriage on the earning capacity of either party. Both matters are directly referable to the marriage. As to the children, the parties continue after separation to share responsibility for their welfare. If the arrangements for the children place one party at a financial disadvantage relative to the other, it is appropriate to make up for this by an adjustment of shares of property. If the allocation during the marriage of the spouses' shared responsibility for child care, household management and financial matters affects the earning capacity of either of them so as to cause a disparity in their living standards after separation, it is appropriate to make up for this in the property adjustment. Such adjustments are not and should not be seen as some form of spousal or child maintenance. They are, rather, an essential part of the property adjustment in that they recognise disparities flowing directly and solely from the marriage relationship. (ALRC 39 para 378)
The Report included a draft Bill. It required there to be substantial difference' in contribution to displace the starting point of equal contribution and it specified precisely the factors to take into account: Superannuation, usually belonging to the man, is often the main asset in a marriage but is not at present considered as property. The ALRC Bill states that current superannuation entitlements should be included as property and valued in accordance with a stated formula. It would then be subject to the rule of equal division. It can also be considered as a financial resource. Many practitioners already use this formula for the division of superannuation.

Family Law Reform Bill (No. 2) 1994

Some features of the ALRC Matrimonial Property report draft Bill were adopted by the Joint Select Committee but have been lost in the subsequent drafting process.

The current Bill does not achieve that level of certainty combined with a degree of flexibility which is the major achievement of ALRC Bill, nor does it do proper justice to the role of women in marriage. The current Bill enacts the starting point of the 50/50 split which is existing Family Court practice, but allows that to be displaced by proof that the contributions were not equal. It only permits the future needs' of the parties to be considered if it is necessary to achieve justice when these needs should be an integral part of the whole process.

As it does not provide a list of clearly defined factors by which to depart from the equal division, nor require there to be a substantial difference' in contribution to displace it, the Bill retains essentially the same degree of discretion as under the current law. Given the increased role envisaged for mediation, this is particularly important. Critics of the Bill argue that parties will agree to a 50/50 split, usually to the detriment of women, because the law does not give them clear directions as to how a court would depart from it. The government has responded to this criticism by calling for a campaign to educate the public but it is hard to know what, short of a study of existing Family Court cases, they can be educated about.

The future needs' component of the property settlement is crucial for many women. Section 79 requires the court to embark on a dual exercise, assessing past contributions and future needs as equal in importance. Under future needs', the lawyer can add a percentage for the fact that the woman will be living with the children, with all that means in terms of costs and restrictions on earning capacity. If her role in the marriage has decreased her earning capacity, that can be taken into account in increasing her future needs. In downgrading future needs, the Bill downgrades women's contribution to marriage.

Unlike the ALRC's draft Bill, the current Bill does not define what property is included in the 50/50 split. It does not deal with the issue of superannuation. It has also omitted to take up the arguments raised by the ALRC and others that a history of violence in a marriage is likely to have an impact on contribution to property and on future earning capacity.

Financial agreements

The proposed rules on financial agreements in this Bill involve radical surgery to the current Act and represent a significant philosophical shift in the law.

Under the current Act a couple may make a property agreement at the end of their marriage. As long as this is placed before the court for approval it can then be binding on both parties and the Court. In practice, provided each party has been independently advised and the agreement is not patently unfair, the Court will approve it.

Under the proposed Bill, financial agreements could be made at any time before during or after the marriage. The Court would not be required to vet them. They will be binding once signed and witnessed. The witness could be any person including someone related to either party, for example, a member of the husband's family such as a brother or son, or a business partner. Unlike similar agreements under De Facto Legislation, there is no cooling off period and no requirement for each to have received independent legal advice.

Without such safeguards, the distressed, over-hasty, guilt-ridden, terrified or downtrodden spouse can bargain away the future security for themselves and their families under the stress of what is often the major crisis of their adult lives. Alternatively, they could make the agreement in the first flush of romance with only the haziest view of what lies in store for them.

The Bill allows the Court to set aside such an agreement if a serious injustice is shown to have occurred. This is measured not by looking at the justice of the terms of the agreement but by reference to the age, physical capacities and educational backgrounds of the parties at the time of the agreement.

While the Bill makes it easier to escape an unjust agreement, there are still problems. It might be hard to prove much about your physical incapacity in 1995 when your marriage breaks up in 2015. In addition, most agreements concluded under emotional strain or in fear of one's safety could not be set aside on the grounds provided. While in some cases - one is tempted to say in the cases of the relatively egalitarian marriages of highly educated baby boomers - the financial agreement may provide an inexpensive resolution of their financial affairs, in other cases it may be a disaster.

This Bill treats marriage as a cool commercial agreement between two parties who are both aware of their commercial self-interest and their legal rights - a view which might generally be considered to be unrealistic. Even though the maintenance component of an agreement can be varied, given the low level of spousal maintenance (and often child maintenance), the property settlement is the most important guarantee of future economic security for families, and particularly for women. Matrimonial law surely has a responsibility to ensure a fair social outcome for families. However, this Bill lacks even the safeguards of a commercial contract. Families' economic security should not be able to be bargained away without greater safeguards.

The Senate Committee has referred to these objections to the Bill but did not recommend any amendments nor express any views.

Prenuptial agreements

The Bill also makes prenuptial agreements subject to variation or being set aside by a court in very restricted circumstances which include serious injustice'. The Bill implies that serious injustice' means more than not being able to achieve a just and equitable result.

As before, the Bill reflects a narrow view of reality. Prenuptial agreements may be desirable for the propertied wife entering her second marriage and wanting to quarantine her property for her children, but not necessarily so for the young Muslim woman whose cultural background might require her to sign away her rights to property if she, though not her husband, commits adultery or abandons the home.

Has the Committee considered the cultural context in which prenuptial agreements are made? The ALRC report Multiculturalism and the Law favoured prenuptial agreements but not that they should be binding on the Family Court. The Senate Committee has also recommended that they not be binding.

There are several ways in which the financial agreements section of the Bill could be improved. They could require stronger formalities before an agreement can be valid. In particular, independent legal advice for both parties should be mandatory, and there should be restrictions on who can be the witness to an agreement. They could permit unfair or unreasonable agreements to be set aside. They could include a change in circumstances of the parties since the agreement was made as a trigger for a court examination of the appropriateness of the agreement (the present ground of the impracticalities of implementing the agreement being insufficient).

Conclusion

Some significant ALRC criticisms of the Bills have not been heeded by the Senate Committee. While legislation such as the Family Law Act can appear on its face to apply equally to men and women it may in fact have an adverse effect on either sex because of the differences in the social and economic conditions of their lives. Legal policy makers need to be trained to understand and correct unintended gender bias in the law. Otherwise Bills such as these can exacerbate, rather than correct, problems in the existing law.

Copies of the ALRC reports referred to in this article are available for purchase.

  • Multiculturalism and the law (ALRC 57) $25.00
  • Choice of law rules (ALRC 58) $20.00
  • Equality before the law: women's access to the legal system (Interim) (ALRC 67) $10.00
  • Equality before the law: justice for women (ALRC 69 Part I) $10.00
  • Equality before the law: women's equality (ALRC 69 Part II) $10.00
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