Property Settlement Disclosure: What You Must Hand Over and When

Every property settlement in Australia runs on one engine: disclosure. Before anyone can negotiate sensibly, both parties must put their financial cards on the table. The obligation is called the duty of full and frank disclosure, and misunderstanding it, or quietly ignoring it, is one of the most expensive mistakes a separating person can make.

What the duty actually is

Each party to a property matter must disclose all information relevant to the financial position of the parties: what you own, what you owe, what you earn, and what you have done with property recently. The duty is ongoing. It starts before proceedings are filed, applies during negotiation and mediation, and continues until the matter is finished. It is not something you do once and file away.

What you must hand over

The core set is broadly the same in most matters:

• Income: recent payslips, your last three tax returns and notices of assessment.
• Bank accounts: statements for every account in your name or under your control, commonly covering the last 12 months, and longer where transactions need explaining.
• Superannuation: a current member statement for each fund.
• Real property: rates notices, mortgage statements, and any appraisals or valuations.
• Businesses and companies: financial statements, tax returns and details of any interest you hold, including through trusts.
• Debts: credit card statements, loan agreements, tax debts.
• Recent dealings: details of any property sold, transferred or gifted in the period around separation.

If your finances are simple, this is an afternoon of gathering documents. If there is a business, a trust or a self managed super fund in the picture, disclosure is more involved, and doing it properly early is what keeps the matter moving.

When it starts, and why timing matters

The practical answer: immediately. Exchange of disclosure is the first real step in almost every property negotiation, and nothing meaningful happens before it. The four step settlement process begins with identifying the property pool, and the pool can only be identified from disclosed material. A party who delays disclosure delays their own settlement, and usually pays for the privilege in legal fees.

What happens if someone hides something

Non-disclosure is both ineffective and dangerous. Ineffective, because money leaves footprints: bank records, land titles, company registers and superannuation trails are all discoverable, and experienced family lawyers know where to look. Dangerous, because the consequences of being caught are real: a court can set aside orders obtained without proper disclosure, draw adverse inferences against the non-discloser, order costs, and in serious cases treat the non-disclosure as contempt. An agreement built on hidden assets is an agreement built to be reopened.

The practical approach

Start a folder the week you separate. Gather the core documents before your first legal appointment, and tell your lawyer about anything you are unsure whether to include. The rule of thumb is simple: if you are wondering whether something needs to be disclosed, it almost certainly does, and disclosing it early costs far less than explaining it late.

For where disclosure fits in the overall settlement, read our guide to the four step property settlement process.

Separating with real assets at stake? Property settlements are where early preparation pays for itself many times over. Call Aegis Law Group on (07) 3709 7610 to book a first conference: a fixed fee quoted when you book, and a written map of where you stand.

This article is general information only and is not legal advice. If you are separating, get advice on your specific situation.