FULL AND FRANK DISCLOSURE refers to declaring all known truths in relation to both parenting and financial matters in family law.  

Under Rule 13 of the Family Law Rules, both parties to a property settlement are obliged to provide “full and frank disclosure” both to their lawyer and to the other party in relation to their financial circumstances.

The general duty to make full and frank disclosure applies to property and financial orders.

The Court rules provide information on how to meet that duty.

The rules require detailed disclosure of:

• All income or earnings (whether paid directly to the party, or to another party, person or legal entity)

• All interests in any property or legal entity that is fully or partially owned or controlled by the party, and details of any income earned by that legal entity (even if the income is paid to someone else).

• Any property disposed of by the party (or a relevant legal entity) by way of sale, transfer, assignment or gift that may affect, defeat or deplete a party’s claim in a financial case, including transfers:

  • in the 12 months immediately before the parties separated, or

  • since separation of the parties

  • Transfers to not have to be disclosed if they were made with the consent or knowledge of the other party, or made in the ordinary course of business.

• All liabilities of the party or any relevant legal entity.

• Any other financial resources

A legal entity is any:

• corporation that is not a public company

• trust

• partnership

• joint venture business, or

• other commercial activity.

A trust includes any trust where:

• the party is the appointor or trustee;

• the party, party’s child, spouse or de facto partner is a beneficiary;

• a corporation is a beneficiary and the party, party’s child, spouse or de facto partner is a shareholder or director of the corporation.

• the party has any direct or indirect power or control over the trust, including the power to remove or appoint a trustee, amend the terms of the trust, or disapprove a proposed amendment.

This information is provided as an overview, and you should read Part 13 of the Family Court Rules for detailed information on disclosure in property and financial cases.

You should seek legal advice if you are unsure of your disclosure obligations.

Published by:

Published by, Christine Weston
Founding Director and Creator of Divorce Resource
Australian Nationally Accredited Mediator and Divorce Coach

This article contains general information only. For advice regarding your own personal circumstances, always seek individual advice from a qualified professional. Read the full Divorce Resource.com.au Disclaimer here