Financial Disclosure in Family Law

The Family Law Act provides that separated couples must provide each other with full and frank financial information — this is known as ‘financial disclosure’.

When a couple separates, both parties need to make important decisions about their financial futures. During the relationship, they may have accumulated various assets and liabilities, which must be divided through the property settlement process.

If an agreement cannot be reached, the parties will often engage solicitors to assist them in determining their entitlements under Australian family law.

What is Financial Disclosure?

Each party must provide the other with documents and information relevant to their financial position. This includes:

Payslips and employment income
Tax returns and Notices of Assessment
Bank statements
Superannuation statements
Details of any trusts, companies, or partnerships
Liabilities such as loans or credit card debts
Financial resources, including interests in future inheritances, pensions, or other benefits

As of 10 June 2025, the Family Law Act has further clarified and reinforced the duty of full and frank disclosure. It is now explicitly required at all stages of a family law property proceeding — not only during litigation, but also in pre-action negotiations and dispute resolution processes.

Consequences of Failing to Disclose

Despite the clear legal requirement, some parties choose not to disclose their financial details, either by ignoring requests or refusing to engage.

This ‘head in the sand’ approach may prove to be far more costly than expected.

If one party commences proceedings in the Federal Circuit and Family Court of Australia due to the other’s non-compliance, it may lead to significant legal costs.
The Court has broad powers to penalise parties who fail to disclose. This may include costs orders, and orders that work against the non-disclosing party’s interests.

Under the 2025 amendments, the Court is now expressly empowered to:

Draw adverse inferences about the non-disclosing party’s financial position
Impute values to assets that have not been disclosed
Make orders for sale or transfer of property, including the family home, shares, and superannuation
Award a greater share of the asset pool to the complying party.

The Court takes financial disclosure obligations very seriously. Failing to comply may result in an outcome that feels unfair, or worse, entirely unfavourable.

Financial Disclosure & Settlement Negotiations

Even outside of Court, disclosure remains a requirement.

The 2025 reforms explicitly state that disclosure must occur in dispute resolution settings, including mediation and collaborative negotiations.

If a party refuses to provide documents or delays the process, the other may apply to the Court for specific orders to compel disclosure, and may also seek orders for costs.

Protecting Your Interests

If you have been asked to provide financial disclosure by your former partner or their solicitor, it is in your best interests to comply as early as possible.

Providing clear, accurate, and complete information:

Helps streamline the settlement process
Minimises the risk of unnecessary legal costs
Builds credibility in the eyes of the Court or mediator

Failure to disclose will not only delay resolution, it may also backfire and result in serious financial consequences.

Contact Us

For more information about financial disclosure in family law, contact us at Bambrick Legal today. We offer a free, no-obligation 30-min consultation for all enquiries.