In calculating the asset pool, there must be full and frank disclosure by all parties as to the assets they possess, whether they be tangible or intangible, in Australia or overseas.

Rule 13.04 requires that:

(1) A party to a financial case must make full and frank disclosure of the party’s financial circumstances, including:

(a) the party’s earnings, including income that is paid or assigned to another party, person or legal entity;

(b) any vested or contingent interest in property;

(c) any vested or contingent interest in property owned by a legal entity that is fully or partially owned or controlled by a party;

(d) any income earned by a legal entity fully or partially owned or controlled by a party, including income that is paid or assigned to any other party, person or legal entity;

(e) the party’s other financial resources;

(f) any trust:

(i) of which the party is the appointor or trustee;

(ii) of which the party, the party’s child, spouse or de facto spouse is an eligible beneficiary as to capital or income;

(iii) of which a corporation is an eligible beneficiary as to capital or income if the party, or the party’s child, spouse or de facto spouse is a shareholder or director of the corporation;

(iv) over which the party has any direct or indirect power or control;

(v) of which the party has the direct or indirect power to remove or appoint a trustee;

(vi) of which the party has the power (whether subject to the concurrence of another person or not) to amend the terms;

(vii) of which the party has the power to disapprove a proposed amendment of the terms or the appointment or removal of a trustee; or

(viii) over which a corporation has a power mentioned in any of subparagraphs (iv) to (vii), if the party, the party’s child, spouse or de facto spouse is a director or shareholder of the corporation;

(g) any disposal of property (whether by sale, transfer, assignment or gift) made by the party, a legal entity mentioned in paragraph (c), a corporation or a trust mentioned in paragraph (f) that may affect, defeat or deplete a claim:

(i) in the 12 months immediately before the separation of the parties; or

(ii) since the final separation of the parties; and

(h) liabilities and contingent liabilities.

Full and frank disclosure includes disclosure of all information regarding income, financial resources, trust connections, liabilities, and disposal of any property before 12 months of separation.

What happens if either party is dishonest in its disclosure of assets?

If it becomes known that a spouse is being dishonest and failing to fully and frankly disclose all assets, the court will use its discretion to decide on unfavourable outcomes for the dishonest spouse.

What happens if my spouse has international property but has not disclosed it?

Property overseas is included as an asset and must be declared along with any other property in Australia. Any non-disclosure of property, whether it be in Australia or overseas will result in the risk of an unfavourable result to the non-disclosing party.

Author Bio: Danny Saad has many years experience in Family Law working with the experienced Family Lawyers at Prime Lawyers in Sydney.

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