What do I need to disclose? Changes to the duty of financial disclosure under the Family Law Act 1975

During family law negotiations and proceedings, all parties have an ongoing obligation to provide full and frank financial disclosure.

From 10 June 2025, the importance of the duty of financial disclosure has been elevated. The Family Law Amendment Act 2024 has codified the duty of disclosure by inserting new disclosure provisions in the Family Law Act 1975.  This new framework provides parties and practitioners with clarity about the scope of the duty and the consequences of failing to comply with the duty.

The duty of disclosure is now part of the Family Law Act 1975 under sections 71B (in the case of marriages) and 90RI (in the case of de facto relationships). The new sections confirm the following:

1. Parties have a duty to both the court and each other to provide ongoing full and frank disclosure on time;
   If you receive a reasonable request for financial disclosure from the other party, it should be answered in a reasonable timeframe. You are also entitled to ask for the equivalent disclosure of the other party, so long as it is in their possession or control.

2. The duty applies for the duration of the proceedings.
   This includes from when negotiations commence until final orders or a financial agreement are made.

3. The Court has the power to impose consequences on a party if they do not comply with its duty of disclosure.
   The Court may:

   1. Take the failure into account when making an order for the alteration of property interests under section 79;

   2. Make any orders concerning disclosure that the court considers appropriate;

   3. Make an order for costs that the court considers just;

   4. Impose sanctions;

   5. Punish a party for contempt; or

   6. Stay or dismiss all or part of the proceedings.

4. The duty extends to information known to the party and documents that have been in their possession or control, as well as information and documents prescribed by the Federal Circuit and Family Court of Australia (Family Law) Rules 2021.

   This includes information and documents relating to a party’s income and any of their financial resources, assets, liabilities and superannuation. Some documents that are often requested or exchanged are bank statements, tax returns, superannuation statements, share statements and online car valuations.

5. There is now a higher standard expected of legal practitioners when advising clients about their duty of disclosure.

   Legal practitioners must provide their clients with information about their duty of disclosure and the consequences of non-compliance with their duty of disclosure. Legal practitioners must also encourage clients to take all necessary steps to comply with their duty of disclosure.

If you are unsure about your legal obligations in relation to the provision of financial disclosure, you should seek legal advice. Contact Robinson + McGuinness to arrange an appointment on (02) 6225 7040, by email on info@rmfamilylaw.com.au or get started now online with one of our experienced lawyers.