When going through property settlement negotiations, it is important that you make fully informed decisions. This isn’t possible if you don’t know what assets, liabilities and financial resources the other party has.
There is an obligation on both parties to give the other full disclosure of all of these things.
While it might seem advantageous not to disclose, if you hide significant assets from the other party, you may be setting yourself up for failure as this is a ground which, if the other party finds out about down the track, will likely enable them to set aside the property settlement.
The following is a description of the general things parties need to disclose to one another:
FEDERAL CIRCUIT COURT RULES 2001 – RULE 24.03
Full and frank disclosure
(1) A party required under this Part to file a financial statement or affidavit of financial circumstances must make in the statement or affidavit a full and frank disclosure of his or her financial circumstances, including details of:
(a) any vested or contingent interest in property (including real or personal property, superannuation and legal and equitable interests); and
(b) income from all sources, including any benefit received in relation to, or in connection with, the party’s employment or business interests; and
(c) the party’s other financial resources; and
(d) any trust:
(i) of which the party is, or has been since the separation of the parties, the appointor or trustee; or
(ii) of which the party, or the party’s child, spouse or de facto partner is, or has been since the separation of the parties, an eligible beneficiary as to capital or income; or
(iii) of which a corporation is an eligible beneficiary as to capital or income if the party, or the party’s child, spouse or de facto partner is, or has been since the separation of the parties, a shareholder or director of the corporation; or
(iv) over which the party has, or has had since the separation of the parties, any direct or indirect power or control; or
(v) of which the party has, or has had since the separation of the parties, the direct or indirect power to remove or appoint a trustee; or
(vi) of which the party has, or has had since the separation of the parties, the power (whether subject to the concurrence of another person or not) to amend the terms; or
(vii) of which the party has, or has had since the separation of the parties, the power to disapprove a proposed amendment of the terms or the appointment or removal of a trustee; or
(viii) over which a corporation has, or has had since the separation of the parties, a power mentioned in subparagraphs (iv) to (vii), if the party is a director or shareholder of the corporation; and
(e) any gift or other disposition of property made by the party since the separation of the parties; and
(f) if there is a partnership, trust or company (except a public company) in which the party has an interest, copies of the 3 most recent financial statements and the last 4 business activity statements lodged by the partnership, trust or company.
If you need help with property settlement issues, the fabulous lawyers at Freedom Law can help you. Contact our head office on the Sunshine Coast, Qld, for an in person or e-consultation.