Financial Disclosure Lawyers Melbourne

Ensuring full and frank disclosure in family law financial matters

Legal Duty of Disclosure

Full and frank financial disclosure is a mandatory legal obligation in family law. Failure to disclose can result in serious consequences including contempt of court, costs orders, and reopening of settlements.

Financial Disclosure in Family Law

In Australian family law, both parties have an absolute duty to make full and frank disclosure of all financial circumstances. This obligation is fundamental to achieving fair property settlements and appropriate spousal maintenance orders. Melbourne financial disclosure lawyers help ensure compliance with these obligations while protecting clients from non-disclosure by the other party.

The Duty of Full and Frank Disclosure

Rule 13.04 of the Family Law Rules

Each party must provide timely, full and frank disclosure of financial circumstances, including:

  • All sources of earnings: Employment, business income, investments, rental income
  • Interests in property: Real estate, vehicles, boats, valuables
  • Financial resources: Superannuation, trusts, companies
  • Liabilities: Loans, credit cards, guarantees, contingent debts
  • Disposal of assets: Any property sold or given away

Continuing Obligation

The duty of disclosure is ongoing throughout proceedings. If your financial circumstances change, you must immediately update your disclosure. This includes receiving inheritances, bonuses, new debts, or any material changes.

What Must Be Disclosed?

Income & Earnings

  • • Salary and wages
  • • Bonuses and commissions
  • • Business drawings
  • • Investment income
  • • Government benefits
  • • Fringe benefits

Assets & Property

  • • Real estate (all interests)
  • • Bank accounts
  • • Shares and investments
  • • Vehicles and boats
  • • Jewellery and collectibles
  • • Cryptocurrency

Financial Resources

  • • Superannuation
  • • Trust interests
  • Business interests
  • • Loans to/from others
  • • Expected inheritances
  • • Legal claims

Debts & Liabilities

  • • Mortgages
  • • Personal loans
  • • Credit card debts
  • • Tax liabilities
  • • Guarantees given
  • • Contingent liabilities

The Disclosure Process

1

Initial Disclosure

Within 28 days of serving proceedings (or earlier by agreement), provide Financial Statement with supporting documents including tax returns, bank statements, pay slips.

2

Document Exchange

Exchange all relevant financial documents. This includes 3 years of tax returns, 12 months of bank statements, superannuation statements, business records.

3

Questionnaires

Parties may request specific information through questionnaires. Must be relevant and not oppressive. Limited to genuine disclosure needs.

4

Valuations

Obtain valuations for significant assets - real estate, businesses, collections. Usually by single expert to save costs.

5

Ongoing Updates

Continue updating disclosure as circumstances change until final orders made. This is a continuing obligation.

Documents Typically Required

Personal Financial Documents

  • • Tax returns (3 years)
  • • Bank statements (12 months)
  • • Credit card statements
  • • Pay slips (recent)
  • • Superannuation statements
  • • Investment portfolios

Property Documents

  • • Title deeds
  • • Mortgage statements
  • • Council rates notices
  • • Rental agreements
  • • Vehicle registrations
  • • Insurance policies

Business Records

  • • Financial statements
  • • BAS statements
  • • Company tax returns
  • • Trust deeds
  • • Partnership agreements
  • • Share registers

Other Financial Records

  • • Loan agreements
  • • Centrelink statements
  • • Child support assessments
  • • Workers comp claims
  • • Pending legal matters
  • • Cryptocurrency records

Consequences of Non-Disclosure

Serious Legal Consequences

  • Orders set aside: Settlement can be reopened years later
  • Contempt of court: Criminal penalties possible
  • Costs orders: Pay other party's legal costs
  • Adverse inferences: Court assumes worst about hidden assets
  • Criminal charges: Perjury or fraud prosecution
  • Credibility destroyed: Court won't believe other evidence

Dealing with Non-Disclosure by Other Party

Warning Signs of Hidden Assets

  • • Lifestyle doesn't match declared income
  • • Sudden decrease in business income
  • • Unexplained cash transactions
  • • Assets transferred to family/friends
  • • Offshore accounts or structures
  • • Reluctance to provide documents

Investigation Tools Available

  • • Subpoenas to banks and employers
  • • Asset searches and investigations
  • • Forensic accounting analysis
  • • Social media investigations
  • • Lifestyle analysis evidence
  • • Third party disclosure orders

Court Powers

  • • Order specific disclosure
  • • Draw adverse inferences
  • • Impute income/assets
  • • Award costs against non-discloser
  • • Injunctions to preserve assets
  • • Contempt proceedings

Best Practices for Disclosure

Protecting Yourself Through Proper Disclosure

  • Disclose everything - when in doubt, disclose
  • Keep detailed records of all disclosure
  • Update promptly when circumstances change
  • Provide clear explanations for complex matters
  • Cooperate with reasonable requests
  • Seek legal advice on disclosure obligations

Complex Disclosure Issues

Trust Structures

Disclosure requirements for trusts:

  • • Trust deeds and variations
  • • Financial statements
  • • Distribution history
  • • Beneficiary entitlements
  • • Control documentation

Business Interests

Complex business disclosure:

  • • Company financials
  • • Shareholder agreements
  • • Related party transactions
  • • Loan accounts
  • • Hidden value streams

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Why Financial Disclosure Expertise Matters

Asset Discovery

Uncover hidden assets and ensure complete disclosure

Legal Protection

Ensure compliance and protect from non-disclosure claims

Fair Outcomes

Achieve equitable settlements based on true positions

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