When a relationship breaks down, a common concern is that the person who has more knowledge about the finances will have an advantage over the person who is less informed. Fortunately however, a lack of involvement in shared finances doesn’t put someone at a disadvantage when it comes to resolving a financial settlement.

According to the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (‘the Rules’), each party in a family law proceeding must provide ‘full and frank’ financial disclosure to enable negotiations to be conducted and the matter processed. This requires each party to present all documents that give a clear and accurate picture of their financial position to their ex-spouse or ex-partner. Any relevant financial material within the possession or under the control of a party may have to be disclosed to the other side.
 
The purpose of financial disclosure is to create transparency in family law negotiations. It is not important if one person was responsible for finances during the relationship, or if they are unsure as to how the party’s income was applied to expenses during their relationship. Ultimately, if there are assets, interests, or debts, that were held in either party’s name or have accumulated during or after the relationship, information about these matters will need to be disclosed.
 
Each relationship is unique and has differing needs, therefore there is no one size fits all solution when it comes to managing joint finances. In the event of a relationship breakdown, it is reassuring to know that limited involvement in shared finances does not put a person at a disadvantage in reaching a fair financial settlement.

You can read the full article here: I don't know much about our family's finances: Is that a problem?

If you have any questions or concerns about your situation, please call to speak with one of or specialist family lawyers on 9840 0035.