In this guide
Key takeaway: In an Australian property settlement, both parties must make full and frank disclosure of all financial information — income, assets, liabilities, superannuation, and business interests. Concealing assets is a serious offence that can unwind settlements years later. Mediation works best when both parties disclose honestly from the start.
What is financial disclosure?
Financial disclosure in family law is the legal obligation of each party to a property settlement to provide the other with a complete, accurate and current picture of their financial position. This obligation exists regardless of whether the dispute is resolved through court proceedings, mediation, or direct negotiation.
The duty is codified in the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Rule 6.06) and the Family Law Rules 2004. It is not a courtesy — it is a legal requirement that continues throughout negotiations. If your financial circumstances change during proceedings, you must update your disclosure.
A settlement reached on incomplete information can be set aside by a court under section 79A or section 90K of the Family Law Act 1975 if the other party later discovers that assets were concealed. This means a final agreement can be reopened years after it was signed — at enormous cost to both parties.
Mediation produces its best outcomes when both parties approach disclosure with integrity. When people play games with disclosure, matters become longer, more expensive, and more damaging to everyone involved — including the children.
Not sure what you need to disclose or how to value complex assets? Our mediators explain the process clearly at no cost.
Book a free consultation →Exactly what you must disclose
Disclosure covers everything that forms part of — or could affect — the property pool. In practice this means:
- All income: salary, wages, self-employment income, rental income, investment income, trust distributions, dividends, Centrelink payments, and any other regular or irregular receipts
- All assets: real property, motor vehicles, boats, caravans, furniture and household goods of significant value, jewellery, artworks, and collectibles
- All bank and financial accounts: savings, transaction, offset, term deposits, and foreign accounts
- All investments: shares, managed funds, bonds, cryptocurrency, and foreign investments
- All superannuation: every fund you have ever contributed to — industry, retail, self-managed (SMSFs), and defined benefit schemes
- All liabilities: mortgages, car loans, credit cards, personal loans, HECS-HELP, business debts, and informal debts owed to family members
- Business interests: sole trader income and assets, partnership interests, company shares, and trust interests where you are a beneficiary, appointor, or trustee
- Expected inheritances: where these are certain or near-certain, they may be relevant to the future needs assessment under section 75(2) of the Family Law Act
- Legal claims: pending litigation, insurance claims, workers' compensation matters, or other potential receipts
The test is broad: if information is relevant to the settlement, it must be disclosed. When in doubt, disclose.
Documents to gather
Gathering your financial documents before mediation or negotiations saves time and cost. The standard set of disclosure documents for most property settlements includes:
| Category | Documents required |
|---|---|
| Income | Last 3 years of tax returns and ATO notices of assessment; last 3 months of payslips; Centrelink income statements if applicable |
| Real property | Title searches; mortgage statements showing current balance and payout figure; recent independent valuation or agent's appraisal |
| Bank accounts | Last 12 months of statements for every account; term deposit certificates |
| Investments | Share and managed fund statements as at separation date and current; crypto exchange statements |
| Superannuation | Member statements from every fund showing balance at separation date and current; SMSF financial statements and deed |
| Vehicles | Registration papers; finance payout letters; RedBook or dealer market valuation |
| Business | Last 3 years of financial statements (P&L and balance sheet); BAS statements; shareholder registers; trust deeds and financials |
| Liabilities | All loan statements; credit card statements; personal loan documents |
Disclosing superannuation
Superannuation is often the second largest asset in a property pool after the family home, yet it is frequently overlooked or underreported. Both parties can use the ATO's online services through myGov to identify all superannuation accounts, including funds from previous employers that may have been forgotten.
Once identified, each fund's current balance and the balance at the date of separation must be disclosed. For defined benefit funds — common in public sector employment — the applicable formula and accrued entitlement must also be provided to the other party.
Superannuation splitting under Part VIIIB of the Family Law Act allows super entitlements to be divided between parties as part of a property settlement. This requires specific documentation from each fund trustee. Your mediator can advise on what information to request from each fund.
Business and trust interests
Business interests are among the most complex assets to value in a property settlement. Where one or both parties own or have an interest in a business — as a sole trader, partner, company director and shareholder, or trust beneficiary — full transparency about the business's financial position is essential.
Courts and mediators examine: the net value of the business at the date of separation; whether goodwill is personal to the owner or attached to the business entity (which affects its inclusion in the asset pool); loans between the business and the parties; trust distributions used to fund personal expenses; and related-party transactions that may have reduced the asset pool.
Where parties cannot agree on business value, a jointly-appointed business valuator can provide an independent report. This is far less expensive than each party commissioning their own expert and disputing the results in court — a common and extremely costly pattern in litigated property matters.
Complex assets don't have to mean a complex dispute. Our mediators have experience with business interests, trusts, and superannuation.
Get honest advice — free consultation →Consequences of hiding assets
Non-disclosure has serious legal consequences. Under the Family Law Act and applicable Rules, a court can:
- Set aside the settlement: If a court later finds an agreement or consent order was made on the basis of incomplete or fraudulent disclosure, it can set the order aside under section 79A (property) or section 90K (binding financial agreements) and require the matter to be reheard
- Make an adverse inference: A court can infer that undisclosed assets exist and make orders on that assumption — effectively penalising the non-disclosing party by treating them as having more than they admitted
- Order costs: A party found to have concealed assets will typically be ordered to pay a substantial portion of the other party's legal costs — costs that can quickly exceed the value of what was hidden
- Refer the matter to the AFP or ATO: In extreme cases involving fraud or perjury, matters may be referred to the Australian Federal Police or the Australian Taxation Office
Beyond legal consequences, non-disclosure destroys trust and inflames disputes. When a party discovers their ex concealed assets — through a subpoena, forensic accountant, or third-party information — conflict escalates dramatically and costs soar for both sides.
How mediation handles disclosure
One advantage of resolving a property settlement through mediation is that you control the disclosure process, rather than having documents subpoenaed through adversarial court proceedings.
Before a property mediation at Mediations Australia, each party completes a financial disclosure statement covering all relevant categories. Where valuations are needed, we assist parties in engaging a single jointly-appointed expert — more cost-effective and less adversarial than each side commissioning their own.
During the session, the mediator ensures both parties have access to the same financial information before any agreement is discussed. This prevents the situation where one party, having withheld information, pushes for an agreement before the other party understands what they are giving up. When disclosure is complete and both parties understand the full extent of the asset pool, agreement becomes far more attainable. Most mediated property settlements resolve in one to two sessions.
Practical preparation tips
- Start early. Gathering superannuation statements, historical bank records, and business financials takes 4–6 weeks. Allow enough time before your session
- Use myGov. Log in to the ATO service to find all superannuation accounts and obtain your most recent income and tax information
- Request a property title search. Confirms who is on title and whether caveats or mortgages are registered against the property
- Get a current mortgage payout figure. The balance on your statement may not reflect all fees and break costs
- Be honest about informal loans. Amounts owed to or from family members are part of the pool and should be disclosed
- Seek legal advice if uncertain. If unsure whether a particular asset or interest must be disclosed, ask a family lawyer or contact our team before the session
Frequently asked questions
Does the disclosure obligation apply in mediation as well as court?
Yes. The duty of disclosure applies in all methods of resolving property settlements — court, mediation, collaborative law, and direct negotiation. It is a legal obligation regardless of the forum chosen.
What if my ex refuses to disclose?
In mediation, a mediator cannot compel disclosure. If your ex refuses, the session may need to pause. Court processes — including subpoenas and financial disclosure orders — may then become necessary. We can advise on your options at that point.
How far back do bank statements need to go?
Typically 12 months of statements is the standard. For matters involving significant asset transfers near the date of separation, statements going further back may be relevant. Your mediator or lawyer can advise on your specific situation.
What if I can't find all my superannuation funds?
Use the ATO's SuperMatch service through myGov. It searches across all registered funds and identifies accounts linked to your tax file number — including ones from previous employment you may have forgotten about.
Can I be penalised for an honest mistake in disclosure?
Courts distinguish between deliberate concealment and honest error. Where you discover an oversight after settlement, the appropriate course is to disclose immediately. Courts are far more forgiving of mistakes corrected promptly than of deliberate non-disclosure.
Related guides
- property settlement in family law
- consent orders
- cost of divorce in Australia
- binding financial agreements
- family mediation
For full disclosure obligations in court proceedings, see the Federal Circuit and Family Court duty of disclosure guidance and the Family Law Act 1975.