Full and Frank Financial Disclosure in Family Law Property Settlements

Abbey Hoolahan

Associate Aitken PartnersView Profile

When parties separate and begin negotiating a property settlement, one of the first and most important steps is identifying the assets, liabilities and financial resources available for division. To achieve this, both parties are required to provide full and frank financial disclosure, ensuring everyone involved has a complete and accurate understanding of the financial circumstances of the relationship.

How the Asset Pool is Determined in a Property Settlement

As family lawyers, when explaining the process involved in property and financial settlement to clients, we will commonly refer to this as the “four step process.”

1. The first step is to identify what the assets are and their respective value (i.e. what makes up the respective matrimonial pool);
2. The second step is to determine what contributions, including both financial and non-financial have been made;
3. The third step is to assess what future needs if any need to be considered;
4. The fourth step is to consider whether the overall division is fair and reasonable in all the circumstances of the case.

What is full and frank disclosure in Family Law?

In this article, we unpack what documents need to be disclosed by both parties to ensure that this first step can be met.

Under rule 6.01 the Federal Circuit and Family Court of Australia Rules (2021) each party must disclose all of their direct and indirect financial circumstances.

The purpose of disclosure is to make sure that both parties, their lawyers and the Court are working from the “same page.”

Without complete disclosure, it is difficult to give meaningful advice, negotiate a fair settlement, or ask the Court to make orders that properly reflect each party’s circumstances.

Why the Duty of Financial Disclosure is Ongoing

One misconception is that this duty is a “one off” obligation, when in reality it is ongoing from the moment negotiations start, up until the conclusion and finalisation of your matter.

For example, if you initially provide your disclose to your former partner in August 2026 and mediation is scheduled for December 2026, you will be required to produce updated disclosure so the asset pool at the time of mediation reflects current figures.

What Financial Documents Must Be Disclosed in a Property Settlement?

The documents required will depend on the nature of your matter and your personal financial circumstances. However common disclosure documents that we frequently require include:

• recent payslips;
• income tax returns and notices of assessment;
• bank statements;
• credit card statements;
• loan documents;
• superannuation statements;
• share portfolios;
• business records;
• trust documents;
• company financial statements;
• valuations, including Redbook valuations for motor vehicles;
• insurance policies; and
• documents relating to any property owned by you or entities connected with you.

In relation to your bank statements, it is important to note that this extends to all accounts in which you have an interest in, i.e. those that you hold in your sole name, hold jointly, or even for the benefit of your children, have an interest in by way of trusts, company or other structures.

You may also be required to disclose documents relating to transactions that occurred before or after separation, particularly where money has been transferred, assets disposed of or have been sold, debts have been incurred, or funds have been received from another source.

This exercise is also useful when it comes to any notable transactions such as unexplained withdrawals, or if a client is making any alleged wastage claims for excessive shopping and allegations of alcohol or gambling use.

Providing documents in an organised way at the beginning can reduce delays, avoid unnecessary correspondence, and place your matter in a stronger position for negotiation or Court events.

How Far Back Do Financial Disclosure Documents Need to Go?

The period of disclosure can vary depending on the issues in dispute. In many property matters, parties are asked to provide documents covering the period from separation to the present, and sometimes for several years before separation where that history is relevant.

For example, in one of our family law matters, although the parties separated in May 2025, we required bank statements from 2021 to demonstrate what financial contributions (if any) were made from our client’s family for her benefit.

At Aitken Partners, we appreciate that this step can be quite overwhelming and ensure that we work with you to make this first step process more stress-free and manageable.

Do Both Parties Have to Provide Financial Disclosure?

Disclosure is not a one-way process.

This duty is imposed to ensure there is a mutual exchange of financial disclosure between you and your former partner.

Another way of thinking about this process, is that your disclosure is another way of you and your former partner placing “all of your cards on the table.”

By doing this is ensures:

• Informed decisions are made;
• An accurate asset pool can be ascertained;
• Fair and efficient resolutions can be made; and
• Appropriate advice can be provided to you.

Your Lawyer's Role in Financial Disclosure Obligations

As your lawyers, we also have a duty to the Court to ensure that you comply with your obligations and provide this disclosure not only within a timely manner, but consistently throughout negotiations and/or proceedings. 

Without providing your disclosure, it is impossible for your lawyer to appropriately advise you in relation to what proposed settlement (if any) would be fair in the circumstances. 

What Happens if You Fail to Provide Financial Disclosure?

Failing to provide proper disclosure can have serious consequences. It may lead to delays, additional legal costs, adverse findings by the Court, or orders being set aside if it is later discovered that relevant financial information was not disclosed. In addition, it can even result in extreme cases, imprisonment. For that reason, early and ongoing disclosure is one of the most important steps in progressing a family law matter.

Does the Duty of Disclosure Apply to Parenting Matters?

One key thing to note is that this duty also applies to both parenting cases.

In parenting matters, disclosure may include information relevant to a child’s care, safety, schooling, medical needs or other matters that assist the Court in determining what arrangements are in the child’s best interests.

Case Example: Consequences of Failing to Provide Full and Frank Disclosure

In the case of Gerber and Ors, the Court found that the husband had failed to provide full and frank disclosure of his financial circumstances following separation and/or at the date of trial.^[1] In this case he failed to disclose his interest in a business post separation. The Court found in this case that, “it was always open to the husband to ‘come clean [yet] he deliberately failed to do so.”^[2]

For more information on this disclosure process, please refer to the FCFCOA Duty of disclosure brochure or contact our office and speak to a member of our family law team for further assistance.

If you need advice about financial disclosure, property settlements or any other family law matter, contact our friendly family lawyers on 03 9600 6000.