Financial Disclosure in Family Law: Why It Matters in Property Settlements

When couples separate, one of the first steps toward a fair property settlement is full and frank financial disclosure.
It’s not just good practice — it’s a legal requirement under the Family Law Act 1975.

At Wallen Family Law, we help clients across Wollongong and NSW navigate this process with clarity, ensuring every asset, debt, and financial resource is properly accounted for before reaching an agreement.

1. What Is Financial Disclosure?

Financial disclosure means both parties must provide complete and accurate information about their financial circumstances.
This includes everything you own, owe, earn or hold an interest in — regardless of whether it’s in your sole name or jointly held.

Typical disclosure includes:

• Bank statements and savings accounts

• Home loan and credit card statements

• Superannuation balances

• Payslips, tax returns and business financials

• Vehicle or property valuations

• Details of any trusts, shares, or investments

This obligation continues throughout your matter — meaning you must update the other party (or the Court) if your financial situation changes.

2. Why Financial Disclosure is so important

Honest disclosure ensures that:
✅ Property settlements are fair and accurate
✅ Negotiations and mediation can progress efficiently
✅ Legal costs stay lower (as unnecessary disputes are avoided)
Failing to disclose information can have serious consequences, including cost orders or even setting aside final court orders later on.

3. The Role of the Balance Sheet

Once disclosure is exchanged, your lawyer will usually prepare a balance sheet — a clear summary of the relationship’s financial position.

This document lists:

• Assets: such as homes, cars, superannuation, savings, investments

• Liabilities: like mortgages, loans, or tax debts

• Adjustments: such as sale proceeds, stamp duty, or pending liabilities

A well-prepared balance sheet provides a shared foundation for negotiations and ensures both parties are working from the same financial information.

4. What Happens If Someone Doesn’t Disclose?

If one party hides funds or their assets, the Court has wide powers to:

• Compel further disclosure through orders

• Issue subpoenas to access disclosure

• Draw adverse inferences against the non-disclosing party

• Reopen or overturn previous property settlements

Non-disclosure can seriously damage credibility and trust — and often costs far more to resolve than if full transparency had been provided from the start.

5. How We Can Help

At Wallen Family Law, we guide clients through every stage of the disclosure process — from collecting documents to preparing accurate balance sheets and negotiating fair outcomes.

Our approach combines practical legal guidance with transparency and respect, ensuring that both parties can move forward with confidence and clarity.

Wallen Family Law — Family Law, Made Clear.

If you’ve recently separated and need help preparing financial disclosure or understanding your property entitlements, we’re here to help.
📍 Based in Wollongong, assisting clients across NSW.
💬 Book your free 15-minute consultation today for clear, practical advice.

Disclaimer: This article provides general information only and should not be relied upon as legal advice. Every family law matter is unique and requires specific legal guidance. Always seek professional legal advice for your specific situation.