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Why Financial Disclosure is Important
In the realm of family law, few aspects are as crucial yet potentially sensitive as financial disclosure. Whether you’re navigating a property, spousal maintenance, or child support proceedings, the law requires both parties to provide detailed accounts of their financial circumstances. This requirement stems from the principle of fairness: ensuring that each party has a clear understanding of the other’s financial situation is essential for reaching equitable resolutions.
However, the prospect of disclosing financial details can understandably evoke concerns about privacy. Many clients worry about the implications of sharing such personal information, fearing it could be misused or exposed beyond the confines of the legal process.
Whether you’re preparing for negotiations or seeking clarity on your rights and obligations, understanding the role of financial disclosure is key to navigating the complexities of family law with confidence and integrity.
Why is Financial Disclosure Required
The provision of financial disclosure, whether your matter is proceeding by way of Court Orders or a Financial Agreement, is a requirement at law and the absence of financial disclosure can expose you to further litigation seeking to set aside the agreement that you have reached, and sometimes, already complied with.
Financial disclosure provides both parties the opportunity to confirm the assets in the matrimonial estate and provides both parties with certainty as to what is being negotiated in their family law settlement.
More importantly, where parties have exchanged financial disclosure the agreement that they reach is more secure. Under the Family Law Act, where parties intentionally conceal assets or do not provide full and frank disclosure the Court can set aside an agreement made by Consent, costing both parties additional legal costs and time.
What if I am worried about my personal information being disclosed elsewhere
Generally speaking, the Federal Circuit and Family Court of Australia (Family Law) Rules prohibit a person from disclosing material that they have received as disclosure to any person other than their solicitor without the permission of the Court or the consent of that party.
At ALA Law we also understand that there are circumstances where a party may not wish to have their residential address disclosed or there are concerns that the disclosure of material may reveal the suburb that a person resides. We are here to assist you during this difficult time and can talk to you about what things can be done to assist in protecting your location.
We have an agreement, surely we don’t need to provide disclosure, right?
Even if you have an agreement there is a risk that the lack of disclosure will result in your agreement being set aside later by a Court. Consequently, even where you have an agreement, you are still required to exchange financial disclosure for the purpose of Court Orders.
We are going to use a Financial Agreement, do we still need to provide disclosure?
Yes, even if you are documenting your agreement by way of Financial Agreement you are required to provide full and frank financial disclosure. In the event you do not the agreement can be set aside by the Court.
Further questions about Financial Disclosure
Still got questions about financial disclosure and your family law matter, why not book an initial consultation with one of our experts in Family Law.
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