It is the law in Australia that full and frank disclosure must be provided in property settlements.
What does disclosure mean?
Disclosure in property proceedings involves the exchange of financial documents between both parties, providing a clear picture of each individual's financial situation. Since each case is unique, the specific documents required for disclosure will differ. Typically, though, both parties are expected to provide evidence of their financial standing, including details about income sources, superannuation, liabilities, property holdings, and other relevant resources. Essentially, it is illegal to withhold any financial information during this process.
The exchange of disclosure usually begins at the outset of property settlement proceedings. However, any new information that arises during the case must also be disclosed, as financial circumstances can change. The obligation to disclose continues throughout the proceedings and only ends when the matter is finalised through a binding agreement or court order.
What do I need to disclose in a property proceeding?
All parties involved in property proceedings have a legal duty to provide relevant documents that reflect their financial position. This disclosure is essential to ensure fairness and transparency in the case. The documents required typically include, but are not limited to:
- Your three most recent payslips
- Your previous three years of tax returns
- A recent superannuation statement, or if you're part of a self-managed superannuation fund, a copy of the trust deed and financial statements for the past three years
- Bank statements covering the last three years
- Details of any interest accrued from property
- Information regarding any inheritance or other financial resources
- Documentation of any shareholding in a public company
- Any documents relating to a trust, private company, or partnership in which you have an interest
- Details of any property sales within the 12 months prior to separation
- Supporting documents for any liabilities in your name, or jointly held liabilities
This obligation ensures that all financial aspects are fully disclosed, promoting a fair resolution in the property settlement.
What happens if you don’t disclose everything?
A failure to disclose financial information can sometimes result in a case progressing to court. In more severe situations, a lack of proper disclosure may even lead to an application to set aside existing orders or a binding financial agreement. This makes it crucial to comply fully with your duty of disclosure to ensure that negotiations are meaningful and can move forward efficiently. By providing all required information, you help facilitate a resolution without the need for costly and time-consuming litigation, allowing the process to remain timely and cost-effective.
Let us help you
Dividing assets between separating couples can be tricky, particularly when complex financial structures are in place. At Eliza Legal, we can provide you with advice regarding your property settlement. Eliza Legal is a leading family law firm based on the Mornington Peninsula, dedicated to providing tailored legal services with compassion and integrity. Contact us today and let’s see if we’re a good fit! We’d love to help you.
