Financial Disclosure Family Law: What You Need to Know

Going through a separation and facing property settlement? You’re legally required to disclose your complete financial position to your former partner and the court. Financial disclosure in family law isn’t optional – and from June 2025, the penalties for hiding assets or providing incomplete information have become significantly stronger.

Here’s what every separating couple in Cairns needs to understand about disclosure requirements.

Key Takeaways 

• Full disclosure is mandatory in all family law property matters – you must reveal all income, assets, debts, and financial resources
• The duty is ongoing from separation until final settlement, including any changes to your financial circumstances
• 2024 reforms strengthened penalties – non-disclosure can now result in losing your entire share of assets, plus additional cash penalties
• You must disclose within specific timeframes – typically before the first court date
• Consequences are severe, including contempt of court charges and potential imprisonment

What Is Financial Disclosure in Family Law?

The duty of disclosure requires both parties in family law matters to provide complete, honest information about their financial circumstances. This means you must tell your former partner about every asset, debt, income source, and financial resource you have – even if you think it’s separate property or irrelevant to the settlement.

Under the Federal Circuit and Family Court of Australia (Family Law) Rules 2021, disclosure covers everything from your bank accounts and superannuation to business interests held through trusts or companies. It also includes any property you’ve sold, transferred, or gifted in the 12 months before separation or any time since.

The Family Law Amendment Act 2024 elevated these obligations from court rules into the Family Law Act itself from 10 June 2025. This change means disclosure is now a statutory duty with stronger enforcement and harsher penalties.

What Documents Must You Disclose?

Before your first court date in property settlement matters, you must provide:

Income documentation:

• Three most recent tax returns and assessments
• Pay slips for the past 12 months
• If you run a business or have an ABN – your last four Business Activity Statements
• Financial statements for any partnership, trust, or company you have an interest in

Asset and liability proof:

• Bank statements for all accounts (typically 12 months before separation)
• Superannuation statements, including self-managed super fund trust deeds and financial statements
• Property valuations, mortgage statements, and loan documents
• Credit card statements and details of all debts
• Vehicle registration and ownership documents
• Share portfolios and investment statements

Additional disclosures:

• Any property disposed of in the year before separation or since
• Beneficial interests in trusts or companies
• Expected inheritances or pending legal claims
• Life insurance policies and their cash values

The family law disclosure requirements extend beyond what’s in your name. You must also reveal financial interests held by entities you control, income paid to third parties on your behalf, and assets held for your benefit.

Why Financial Disclosure Matters

The court can’t make fair property settlement orders without knowing the complete financial picture. When you sign your Financial Statement (Form 13), you’re giving an undertaking to the court that you’ve provided full and frank disclosure.

This undertaking is a legally binding promise. Breaching it constitutes contempt of court, and the consequences have become significantly more severe since June 2025.

What Happens If You Don’t Disclose?

The penalties for failing to provide proper disclosure are no longer just theoretical warnings. Recent cases demonstrate the court’s willingness to impose substantial consequences:

Zhuo & Ji [2025] 

A Melbourne husband failed to disclose his complete financial position despite multiple court orders. The Federal Circuit and Family Court awarded the wife the entirety of the known asset pool, excluding superannuation, plus an additional cash payment of over $5 million to account for likely undisclosed assets.

Melbourne AFP Case (2023)

A man falsified bank statements and concealed assets worth more than $4 million during family law proceedings. He was sentenced to 18 months imprisonment, with six months to be served in custody.

The court can also:

• Make adverse inferences about undisclosed assets
• Order you to pay your former partner’s legal costs
• Set aside financial agreements or court orders obtained through non-disclosure
• Refer you to the Australian Federal Police for criminal investigation
• Fine you for making false or misleading statements

Your Disclosure Duty Is Ongoing

Many people mistakenly think disclosure is a one-time requirement. It’s not. Your obligation continues from separation until your property settlement is finalised – whether by court order or private agreement.

If your financial circumstances change during this period, you must update your disclosure within 21 days. This includes:

• New employment or income changes
• Receiving an inheritance or lump sum payment
• Selling, buying, or transferring property
• Taking on new debts or paying off existing ones
• Changes to business interests or investments

Even minor changes can be material to your settlement. When in doubt, disclose.

Getting Property Settlement Disclosure Right

If you’re going through a separation in Cairns, getting your financial disclosure right is critical. The reforms that took effect in June 2025 mean the court now has stronger tools to penalise non-compliance – and recent cases show they’re willing to use them.

Professional legal advice can help you understand exactly what you need to disclose, how to document it properly, and how to respond if you suspect your former partner isn’t being transparent about their finances.

Our experienced divorce lawyers at Cairns Divorce Lawyers help clients navigate the disclosure process and property settlement negotiations every day. We’ll make sure you meet your obligations while protecting your interests throughout the process.