Before you and your ex-partner finalise an agreement or property orders regarding the division of your assets, you are both obligated to provide each other with full and frank financial disclosure, failing to do so may result in the agreement being set aside in the future. This process is compulsory and is set out in the Federal Circuit and Family Court (Family Law) Rules 2021 (Cth) at rule 6.06.Before you can start negotiating how your assets will be divided, everyone must know what the ‘asset pool’ is actually made up of. Understanding what the net value of all of your assets, liabilities and superannuation entitlements will ensure a just and equitable split of the net asset pool.
What information will you be required to provide?
Full and frank disclosure requires both parties to confidentially identify and provide any and all documentation pertaining to their financial circumstances and position from the date the relationship commenced.
Disclosure must be of the party’s total direct and indirect financial circumstances. You are required to disclose all sources of earnings, interest, income, property and other financial resources.
Also required to be disclosed is information about any property disposal (whether by sale, transfer, assignment or gift) that was made in the year immediately before the separation of the parties or since the final separation. Where the values are not agreed, then appraisals or valuations may need to be obtained.
Financial disclosure documents that are in your possession or in your control are disclosable by you and you may also need to speak with your Accountant to obtain document held by their office on your behalf.
Documents commonly disclosed include:
- Your payslips, as they display your employment and other income.
- Bank statements for all accounts that you have an interest in from the date of separation to current, including credit card statements.
- Superannuation statements for all superannuation accounts in your name.
- Individual Tax Returns and Shareholding statements.
- Trust deeds if you are linked to any partnerships.
- Balance Sheets and profit and loss statements for every company you own in part of whole.
- Documents relating to any a interest you have in real property (e.g. your matrimonial home or investment properties) – owned solely by you or jointly owned with another person.
- Mortgage statements for any loans held solely or jointly in your name.
- Details of assets you own, such as your motor vehicle and any lease agreements.
- Information regarding any assets that you have sold, gifted or transferred since the date of your separation and if so, by whom and for how much.
It would be premature to enter into financial negotiations if your former partner has not provided you with full and frank disclosure of all the assets and liabilities in their name. If the other party does not provide you with financial disclosure, you may have grounds to begin proceedings in the Federal Circuit and Family Court of Australia.
The Court can make orders that your former partner provide you with the requested documents. If you require legal guidance to understand your obligations when contemplating entering into formal property arrangements or agreements, contact our family law team first to be sure your well informed as to your legal rights.
Email us at info@icaalaw.com or call us today to book your appointment on (03) 9842 4474.
Important Disclaimer: The content of this posted article is general in nature and for reference only. The content does not constitute legal advice. Legal advice about your specific circumstances should always be obtained before taking any action in your particular circumstances.
