When a relationship ends, one of the first steps towards resolving a property settlement is understanding the financial position of both parties.

That requires each party to provide relevant information and documents about their financial circumstances.

This obligation is known as the duty of disclosure.

From 10 June 2025, the duty of financial disclosure was expressly incorporated into the Family Law Act 1975. The obligation applies to both married and de facto couples and can arise while parties are preparing for property or financial proceedings, not simply after proceedings have commenced.

What is the duty of disclosure?

In financial and property matters, parties are required to provide full and frank disclosure, in a timely manner, of information and documents relevant to the issues in dispute.

Once proceedings have commenced, the duty is owed both to the Court and to the other party.

Importantly, it is an ongoing obligation. It does not end after an initial exchange of financial documents. If a person's financial circumstances change or further relevant information becomes available, additional disclosure may be required.

When does the duty begin?

You do not necessarily need to be in Court before the duty applies.

The Family Law Act provides for disclosure obligations where separated parties are preparing for proceedings concerning financial or property matters.

If proceedings commence, the duty continues throughout the proceedings until the matter is finalised.

This reflects the practical reality that disclosure is often required well before a Court application is filed so that parties and their lawyers can properly identify the property pool and attempt to negotiate a resolution.

What needs to be disclosed?

The precise disclosure required will depend upon the financial circumstances of the parties and the issues in the matter.

Common documents may include:

• bank statements;
• taxation returns and notices of assessment;
• payslips and other evidence of income;
• superannuation statements;
• mortgage and loan statements;
• credit card and other liability statements;
• documents relating to shares and investments;
• property valuations or appraisals;
• trust documents;
• company financial statements and taxation records; and
• documents relating to the sale, transfer or disposal of assets.

The Court's Rules also require disclosure of matters extending beyond assets held directly in a person's own name. For example, disclosure can encompass interests in property owned by an entity that a party owns or controls, and income earned by such an entity.

Do companies and trusts need to be disclosed?

They can be particularly important.

A family law property settlement is not limited to looking at the family home and personal bank accounts.

Where a party has interests in a company, trust, partnership or other business structure, relevant financial information about that entity may need to be disclosed.

Depending on the circumstances, this can include company accounts, taxation records, trust deeds, distributions, loan accounts, shareholdings and other documents that assist in understanding the nature and value of the party's interest.

This is particularly important in property settlements involving privately owned businesses or complex corporate and trust structures.

What about assets held with another person?

Disclosure is not limited to assets held solely in your name.

Relevant interests may include jointly owned assets, interests held through companies or trusts and other direct or indirect financial interests.

The Rules expressly contemplate disclosure of vested or contingent interests in property, including certain interests involving entities owned or controlled by a party.

The fact that an asset does not appear on a person's personal bank statement or property title does not necessarily mean it is irrelevant to the family law matter.

Do I need to disclose an asset acquired after separation?

Potentially, yes.

Separation does not itself bring the disclosure obligation to an end.

Property settlements generally require consideration of the parties' financial circumstances at the relevant time, and parties should obtain advice before deciding that an asset, liability, financial resource or change in circumstances does not need to be disclosed.

This is one reason disclosure is an ongoing process rather than a once-off exchange of documents.

What if I don't know the value of an asset?

Disclosure and valuation are different issues.

You may know that an asset exists but disagree about—or simply not know—its value.

For example, a privately owned business may require a formal valuation before its value can be agreed.

The Court's own guidance on preparing a balance sheet recognises that an asset can be identified as having a value “not known” where further disclosure or formal valuation is required.

The important point is not to omit the asset simply because its value has not yet been determined.

What happens if the other party does not provide disclosure?

If disclosure appears incomplete, there are various procedural steps that may be available depending upon the circumstances.

These can include requesting particular documents, seeking further disclosure and, where necessary, applying for Court orders requiring information or documents to be provided.

In some matters it may also be necessary to obtain documents from third parties through the appropriate Court processes.

The appropriate response will depend upon what information is missing and why it matters to the property settlement.

What are the consequences of failing to disclose?

Failing to comply with the duty of disclosure can have serious consequences.

The Family Law Act expressly identifies a range of powers available to the Court. Depending on the circumstances, the Court may:

• take the failure into account when determining a property settlement;
• make costs orders;
• make orders concerning disclosure;
• impose sanctions for contravention of an order;
• punish contempt; or
• stay or dismiss all or part of proceedings.

The Attorney-General's Department also identifies costs consequences and contempt among the potential consequences of non-compliance.

Can a property settlement be finalised without proper disclosure?

This can create significant risk.

Parties need sufficient reliable information about their financial circumstances to make informed decisions about a proposed settlement.

Incomplete disclosure can also affect negotiations and the Court's ability to determine the true financial position of the parties.

Where a proposed settlement involves businesses, trusts, companies or significant investments, careful financial disclosure can be particularly important before final terms are agreed.

Disclosure in complex property settlements

Disclosure often becomes more involved where the property pool includes:

Businesses · Companies · Trusts · Partnerships · Investment structures · Related-party loans · Significant superannuation interests

In these matters, simply obtaining a list of assets may not provide a complete picture.

It may be necessary to examine company financial records, trust structures, distributions, loan accounts, ownership and control, and the relationship between different entities.

Accountants, forensic accountants or valuers may also be required depending upon the complexity of the financial arrangements.

This is an area where KMB Legal's experience across both Family Law and Commercial & Business Law can be particularly valuable.

Has the law about disclosure recently changed?

Yes, although the obligation to provide financial disclosure is not new.

From 10 June 2025, the duty was elevated from the Court Rules into the Family Law Act 1975. The legislation now expressly sets out the disclosure duty for married and de facto parties.

The Court Rules continue to contain disclosure requirements and procedures.

The reforms also introduced an obligation on legal practitioners and family dispute resolution practitioners to explain the duty and potential consequences of non-compliance and encourage parties to comply.

Getting legal advice about financial disclosure

Proper disclosure is an important foundation for negotiating or determining a family law property settlement.

Understanding exactly what should be disclosed—and identifying when important financial information may be missing—can become particularly significant where a matter involves businesses, companies, trusts or other complex financial structures.

Obtaining advice early can help ensure the financial position is properly identified before negotiations or a proposed settlement progresses.