What is Duty of Disclosure in Family Law

duty of disclosure | Melbourne Family Lawyers

Family law in Australia is designed to protect the interests of all parties involved in a dispute, notably regarding property settlement, financial matters, and parenting arrangements.

The duty of disclosure is central to ensuring a fair and just resolution, which requires each party to provide complete and accurate information about their financial circumstances.

Let’s take a look at the duty of disclosure in family law matters, and its implications.

What Is the Duty of Disclosure?

The duty of disclosure is a fundamental principle in family law proceedings in Australia.

It is based on the premise that both parties must be fully informed of each other’s financial circumstances to make informed decisions and reach a fair and equitable resolution.

This disclosure extends to all aspects of a party’s financial situation, including income, assets, liabilities, expenses, and superannuation.

The Family Law Act 1975 and the Family Law Rules and Regulations impose a legal obligation on parties to provide full and frank disclosure. This duty is ongoing and commences from the outset of proceedings and continues until the finalisation of the matter.

What Is Full and Frank Disclosure?

Full and frank disclosure is the legal requirement for parties, particularly in insurance contracts, to provide complete, honest, and relevant information without withholding any material facts that could influence the contract’s terms or decisions.

What is Financial Disclosure?

Financial disclosure is the act of revealing financial information to another party, usually in the context of family law matters like divorce or property settlement. This includes revealing assets, income, expenses, and debt.

The Federal Circuit and Family Court of Australia imposes a duty upon parties to disclose their finances to one another.

Financial disclosure ensures that both parties have a clear understanding of the financial landscape, which is crucial for determining the division of property, spousal and child support, and other financial matters. It allows for a just and equitable outcome.

Key Takeaway: Financial disclosure is not optional; it’s a legal requirement.

Financial Disclosure Obligations

Parties involved in family law proceedings must provide financial disclosure in a prescribed and organised manner. This involves disclosing:

1. Financial Statements: Comprehensive financial statements must be prepared, outlining all income, assets, liabilities, and expenses. These statements should cover the last three years.

2. Bank Statements: Parties must provide bank statements for all accounts, including savings, transactional, and investment accounts.

3. Tax Returns: Both current and previous tax returns must be disclosed, along with supporting documents such as group certificates.

4. Property and Valuations: Detailed information about all real estate properties, businesses, investments, and valuations should be provided.

5. Superannuation: Full disclosure of superannuation account details and balances is mandatory.

Also read: Penalty for Hiding Assets in a Divorce

Financial Abuse and Disclosure

In some cases, failure to disclose can be a form of financial abuse, where one partner hides assets to retain control and power in a relationship.

This is especially concerning as it adds another layer of complexity to the legal proceedings.

Key Takeaway: Financial abuse is a form of domestic abuse and can complicate family law matters.

Importance of Legal Advice

Given the complexity and significance of the duty of disclosure, seeking legal advice is crucial for both parties involved in family law matters.

Family lawyers can guide the scope of disclosure, assist in preparing accurate financial statements, and ensure compliance with the duty.

Need a Lawyer?

How We Can Provide Assistance

We recently had the opportunity to assist a client, a divorced father, who was deeply concerned about the legal implications of financial disclosure in his family law case.

The client was aware that failing to provide accurate and complete financial information could lead to severe consequences, including the possibility of court orders being set aside.

He was particularly anxious about how this could affect his property settlement and child support arrangements.

Upon consultation, we thoroughly reviewed his financial assets, liabilities, income, and expenses.

We then guided him through collating all necessary documents, such as bank statements, tax returns, and property valuations, to ensure full compliance with Australian law.

Our team also advised him on the ongoing duty of disclosure, emphasising that this obligation is not just a one-time event but continues throughout the legal proceedings.

By the end of our engagement, the client felt more confident and less stressed, knowing he had fulfilled his legal obligations and minimised the risks associated with failure to disclose.

Seek Professional Advice

Failure to provide financial disclosure Australia in family law system is a severe issue with legal and ethical implications.

It’s not just about being transparent; it’s about ensuring a fair and equitable outcome for all parties involved.

So, if you’re ever on the fence about disclosing information in your property settlement, the answer is undeniably ‘yes.’

Director of Melbourne Family Lawyers, Hayder manages the practice and oversees the running of all of the files in the practice. Hayder has an astute eye for case strategy and running particularly complex matters in the family law system.

1 thought on “What is Duty of Disclosure in Family Law”

  1. Pingback: Penalty for Hiding Assets in Divorce Australia | Melbourne Family Lawyers

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