Family lawyers constantly give advice to their clients about their ongoing duty to provide full and frank financial disclosure to their ex-spouse / ex-partner (or the family lawyers engaged to act for their ex-partner).
Providing complete and transparent disclosure is a mutual obligation on those who have separated, however, many people cannot get their heads around why their now ex-partner, is entitled to or should be given their personal financial information. Documents such as individual taxation returns, bank and credit card statements and superannuation statements all form part of what lawyers call ‘discoverable documents’, which are simply documents that should (in accordance with the Family Court Rules) be produced to your lawyer, and then passed on to your estranged partner or spouse (or their divorce lawyer).
The ongoing obligation on separated parties to provide all relevant financial documents continues until a final settlement outcome has been reached and formalised, or until the Court has made a final Order (if your family law matter is before the Court). This mutual obligation ensures that, when separated parties are attempting to negotiate their property settlement matters, they are on a “level playing field” when it comes to access to information.
Once disclosure documents have been exchanged (and any necessary valuations completed), both parties should have an accurate picture of their ex-partner’s financial position (as well as their own). Armed with this knowledge, many separated couples can reach an amicable and expeditious property settlement, without the need to resort to litigation.
However, often the exchange or production of financial disclosure between divorced or separated spouses, is met with resistance either by one or both parties.
If information or financial documents are withheld from one party, and a property settlement agreement is reached without one party being fully informed, the non-disclosure of a material matter may enable a party to apply to the court and seek that the property settlement previously reached be set aside. If this occurs, a settlement can potentially be re-opened, all of the hard work, time and expense that has gone into negotiating and reaching an amicable property settlement, may well have been wasted.
Therefore, I often find myself saying to clients “it is better to be an open book.” Ensure that the line in the sand is drawn by complying with this ongoing obligation and provide all relevant financial documents to your estranged spouse or partner.
This is always the best approach if you want your final property settlement agreement to indeed be ‘final’.
WE CAN HELP
The division of property between spouses can be a complex, and sometimes lengthy process. Obtaining professional legal advice is imperative to securing a just and equitable outcome.
Our Specialist Family Lawyers on the Gold Coast will be able to examine your unique situation and ofer sound legal advice on what to do next.
Contact us today on 1300 246 529 or send us an online enquiry.
