One of the challenges during a divorce property settlement Melbourne is getting both parties to cooperate and be fully transparent to disclose their financial assets and liabilities. However, disclosing financial information to the opposite party in the event of a divorce or de facto partnership breakdown is typically a worry for most clients. A common fear is that the other party might utilise or withhold financial documents related to assets or obligations that they were ignorant of during the marriage or de facto partnership, or they gained post-separation from the other party, resulting in a lack of transparency. Clients might also be worried about their financial information being used by the other side against them. Only the present Court proceedings can make use of the other party’s financial disclosure. The Court’s consent is most of the time required if the information is to be used for another case. Financial disclosures must also be relevant to the case at hand.
Under the 2004 Family Law Rules, financial disclosure is a legal requirement in a divorce property settlement Melbourne. The term “duty of disclosure” is often used to describe this. As a matter of courtesy and compliance to the law, both parties are expected to disclose any relevant material to the Court quickly. Before any formal agreement is made, such as Consent Orders or a Financial Agreement, or before a party files an Application to the Court, disclosed financial information must be shared between both sides. The requirement to disclose financial information is effective as soon as the parties begin discussing a divorce property settlement Melbourne and will continue until the case is resolved. Financial disclosures must continue to be made to the opposite party until the end of a final hearing if the case is to go to trial.
Financial disclosure is required to determine the worth of the property pool and the financial assets of both parties. All joint or sole property, assets or obligations with a third party or assets that have been disposed of after the separation are included in this category of assets. The financial information is then discussed with the opposing party or their lawyers to ensure that the “full and honest disclosure” duty has been met. As such, there should be no misunderstandings as to how much money is available or how much property is worth to each party.
Unless both parties have given their “full and honest disclosure,” there can be no agreement on the value of the property pool’s assets and liabilities. The Court may not honour any Consent Orders and Financial Agreement that were made without “full and honest disclosure.” Contempt of Court might be determined if one party refuses to submit financial disclosure while the case is before the Court.