disclosure

You and your partner must exchange all documentation and information relevant to your individual and joint financial circumstances. This process if often called “full and frank disclosure”. This process is required by the relevant family law legislation. This process also ensures all parties have a contemporaneous and updated understanding as to what comprises the property pool to be divided. It is important to remember the property pool to be divided will take into account all assets and liabilities as at the date of division, not as at the date of separation.

what does disclosure involve

Making full and frank disclosure requires disclosure of information and documentation in relation to the following issues:

  1. all sources of earnings;

  2. interest;

  3. income;

  4. property (vested or contingent);

  5. all financial resources. This applies whether the property, financial resources and earning are owned by or come to the party directly, or go to some other person or beneficiary (for example the party’s child or de facto partner) or are held in corporations, trusts, company or other such structure; and

  6. the disposal of property (whether by sale, transfer, assignment or gift) that was made in the year immediately before the separation or since the final separation,

the importance of disclosure

It is important to bear in mind that the Federal Circuit and Family Court of Australia Rules 2021 requires all parties to provide an undertaking to the Court that they have complied with the duty of disclosure prior to the first Court date. 

You may be of the view that you do not wish to full and frank  disclosure of your financial circumstances. Failing to make full and frank disclosure carries a significant risk. It could result in any formalised settlement reached being overturned at a later date. This will result in further legal costs. 

If you require further clarification about the duty of disclosure, contact Pickering Pendleton today for a no obligation 30 minute free chat.