Family law in plain English

Sometimes people may feel like their family lawyer is speaking a different language. As family lawyers, we sometimes use words or phrases that are new to clients. Here is a list of some commonly used terms and a brief definition:

• Property pool – The pool of assets, liabilities and superannuation of both parties to a relationship, either owned by both of them jointly, or individually as at the current date. A property pool will include assets, liabilities and superannuation acquired before or during the relationship, or after separation. A property pool may include real property, cars, credit cards, bank accounts, personal loans, home loans, shares, business interests and superannuation, among other things.

• Property settlement – The formalisation of the division of the property between two parties following the breakdown of their relationship. Property settlements between married couples are guided by section 79 of The Family Law Act 1975 (Cth). For a property settlement to be legally binding, it needs to be formalised in one of two ways, being by Consent Orders or a Binding Financial Agreement.

• Consent Orders – Orders made by the Federal Circuit and Family Court of Australia (or a Court will delegate jurisdiction to make the Orders, such as the Local Court) by consent between the parties. These Orders can be obtained by filing an Application for Consent Orders or by resolving family law proceedings before the Court by consent, as opposed to having orders made by a judge for you, after a hearing.

• Binding Financial Agreement (BFA) – A contract made between two parties under The Family Law Act 1975 (Cth), which sets out how assets are to be divided following a separation. In the United States of America, these agreements are commonly referred to as “pre-nups”. Despite what the American term might suggest, a Binding Financial Agreement or BFA can be entered into before or during a relationship or after separation, in Australia.

• Divorce – The process of legally ending a marriage. The divorce process does not deal with property division or care arrangements for any children. It is simply the process of becoming legally unmarried. To obtain a Divorce Order, a party, or both of them, must file an Application for Divorce with the Federal Circuit and Family Court of Australia and pay a filing fee, which is currently $1,125.

• Just and equitable – When a property matter is resolved either by consent or decision by the Court, the Court must consider whether the outcome is “just and equitable” having regard to the specific circumstances of the case. The principle allows for some fluidity in circumstances where a strict application of the law may not necessarily result in a fair and reasonable outcome for one or more of the parties involved. It is a consideration to be made by the Court, not by either of the parties.

• Spousal maintenance – Payments made by one party to another to assist the receiving party in meeting their living expenses. Spousal maintenance payments can be paid as periodic payments for a specified period of time or as a lump sum. In determining whether spousal maintenance payments are appropriate, the Court will assess what each of the parties reasonable living expenses are and what their income is and come to a decision about whether one party needs additional funds, and the other party has the capacity to pay the other. This is separate from a property settlement.

• Best interests of the children – When determining parenting matters, the paramount consideration is the best interests of the child/ren. Section 60CC of the Family Law Act 1975 sets out what the Court needs to consider when determining what is in the child/ren’s best interests. This includes:

  1] the safety of the children;

  2] the children’s views;

  3] the developmental, psychological, emotional and cultural needs of the children and the ability of parents and/or caregivers to meet those needs;

  4] the benefit of children having relationships with their parents and other significant people; and

  5] anything else that is relevant.

• Care/parenting arrangements – This refers to the arrangements that are in place for the children. They include who makes the major long-term decisions for the children, where the children live, what time they spend with each of their parents, the school holiday arrangements, telephone/FaceTime contact between the children and their parents, and what the arrangements are for special occasions such as Father’s and Mother’s Days and Christmas, etc.

• Decision making/parental responsibility – Decision making is the authority to make major long-term decisions in relation to the care and welfare of the children. This includes decisions made in relation to where children go to school, their religion, their name and their health. A court may make an order that one or both parents have the ability to make decisions about the children.  Parental responsibility is the power, duties and responsibilities that one or both parents have in relation to the children. Absent an order to the contrary, both parents have parental responsibility for their child/ren.

• FCFCOA – The Federal Circuit and Family Court of Australia. This is the Court that has jurisdiction to deal with family law matters and determine issues in accordance with the Family Law Act 1975 (Cth). The FCFCOA deals with both parenting and property family law matters in Australia.

• Independent Children’s Lawyer (ICL) – A lawyer appointed by the Court to represent the children’s best interests independently from either of the parents. They do not act on the children’s instructions, but rather give an independent and impartial perspective to the court based on evidence provided by the parents and/or other experts, such as a psychologist.

You can find additional information about any of the terms referred to in our other blogs.

If you would like to discuss how any of the matters raised in this blog impact you, or your family law matter more generally, please get in touch with us.

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.

Supporting Victims and Survivors of Family Violence after Separation: Property Settlements and Spousal Maintenance

The Family Court’s approach to acknowledging family violence in property settlements and spousal maintenance claims under the Family Law Act 1975 has changed as of 10 June 2025.

Why the change?

There is increasing recognition of the prevalence of family violence within the community and the risks posed to parties going through separation.

Changes to the Family Law Act 1975 were made to help address the economic consequences that victims and survivors of family violence experience during and following separation.

These changes are intended to provide the Family Court with broader discretion to consider the economic impact of family violence to ensure settlement outcomes are just and equitable and that parties are provided with proper financial maintenance following separation.

Key changes

1] The definition of Family Violence under section 4AB of the Act has been amended to encapsulate a broader range of economic and financial abuse.

This has been done by repealing the existing references to economic and financial abuse and placing examples of economic and financial abuse into their own separate provision.  Examples of behaviour that may constitute economic and financial abuse include:

1. unreasonably denying a family member the financial autonomy that the family member would otherwise have had, such as by;

   a] forcibly controlling the family member's money or assets, including superannuation; or

   b] sabotaging the family member's employment or income, or potential employment or income; or

   c] forcing the family member to take on a financial or legal liability, or status; or

   d] forcibly or without the family member's knowledge, accumulating debt in the family member's name;

2. unreasonably withholding financial support needed to meet the reasonable living expenses of a family member, or a family member's child;

3. coercing a family member (including by use of threats, physical abuse or emotional or psychological abuse):
   a] to give or seek money, assets or other items as dowry; or

   b] to do or agree to things in connection with a practice of dowry;

4. hiding or falsely denying things done or agreed to by a family member, including hiding or falsely denying the receipt of money, assets or other items, in connection with a practice of dowry.

2] Family violence is a factor that may be considered in spousal maintenance claims under section 75(2).

The effect of any family violence to which one party has subjected or exposed the other party, including on any of the matters mentioned in section 75(2) (such as the health of a party) must now be considered by the Family Court when considering spousal maintenance claims.

This amendment recognises that family violence may impact a party’s need for spousal maintenance. For example, a party may not be able to leave the family home because they cannot afford the expense of alternative accommodation or because they have been restrained from having their own bank account or access to their own funds.

This amendment is intended to ensure parties are provided with sufficient maintenance at the end of a relationship, and it is not intended to be punitive or compensatory.

3] Family violence is also a relevant consideration under the property settlement framework under section 79.

Family violence can be considered by the Family Court when assessing parties’ contributions to the relationship, as well as any future needs of the parties, when determining a property settlement.

This acknowledges that family violence may have impacted a party’s ability to contribute to the relationship and also their future circumstances. For example, one party may have prevented the other from engaging in employment during the relationship, thereby limiting their financial contributions. This act of family violence, in turn, may impact a party’s ability to gain meaningful employment in the future.

If you would like confidential and specialist advice about your particular circumstances, contact us today to arrange an appointment by email at info@rmfamilylaw.com.au or call 02 6225 7040 or get started now online.

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.

Moving Forward and Moving Away: When You Seek To Relocate And The Other Parent Doesn’t Agree

When parents separate, they are still faced with the reality of co-parenting.  This can be challenging for parents to navigate following the breakdown of a relationship, when emotions are high and unresolved issues may remain.  This is especially challenging when one parent seeks to move.

The focus for parents should always be what is in the best interests of their children. When faced with a parenting matter, this is also the Court’s primary consideration (see section 60CA of the Family Law Act 1975 (Cth) (the Act)).  In determining what is in a child’s best interests, the Court will consider the matters set out in s 60CC(2) of the Act.

It is not recommended (nor usually condoned by the Court) for parents to relocate the residence of a child without the both parents agreeing to the proposed move; or without a Court Order allowing the parent to move with the child.

When a parent is seeking to relocate with a child, the Court will be interested in how the proposed move will impact that child; having regard to their developmental, psychological, emotional and cultural needs.  For example, a parent seeking to relocate will need to consider how the move will impact the child’s education.  The Court will be interested in understanding the child’s educational arrangements, including what year the child is in at school and whether they have special educational needs (for example, that can only be met in certain schools).     

In most cases, a proposed relocation is likely to have an impact on the care arrangements for the child, and the capacity for both parents to spend time with that child as they have been.  The Court gives consideration to the benefit afforded to the child of having a relationship with their parent, and other significant people. 

Parents should be able to identify how they will be able to support a relationship between the child and the other parent if they are (and/or are not) able to move.  The Court will be interested in the practicalities of the move, including what travel will be involved to visit the other parent and the costs of that travel.  

The moving parent should be able to clearly articulate how they will support the relationship between the other parent and any other significant people in the child’s life.  This may involve giving consideration to greater time with the other parent in the school holidays and communication (for example, video communication at set times and with regular frequency).

Where a parent has been subjected to family violence by the other parent, the Court will give consideration to whether the arrangements promote the safety of the child (and the caring parent).

In making a decision about relocation, there is (generally) no easy answer.  Discussions about resolving a matter will involve one parent compromising on their position significantly, or both.  The Court will ultimately balance the parties’ competing proposals and make a determination about what they consider is in the child’s best interests.

If you are considering relocating with your child, you should speak with a specialist family lawyer to understand your rights and obligations.  You can contact Robinson + McGuinness today to arrange an appointment by email at info@rmfamilylaw.com.au or 02 6225 7040 or get started now online with one of our experienced lawyers.

Author: Anika Buckley, Associate

Who pays for pregnancy? – Section 67B of the Family Law Act

Section 67B of the Family Law Act provides that a father must make a proper financial contribution to maintenance of the mother in relation to childbirth and reasonable medical expenses. It is important to note that this section only applies to parties who are not married.

The first issue the Court must consider is the length of time of the childbirth maintenance period. This is the period in which the father is liable to contribute to childbirth expenses.

Section 4 of the Family Law Act defines the “childbirth maintenance period” as commencing either:

-          The day that the mother is required to cease working due to medical advice; or

-          2 months prior to the day the child is due to be born.

The childbirth maintenance period ends 3 months after the child’s birth. Therefore, the childbirth maintenance period will be for a period of at least 5 months.  

It is important to note that the expenses claimed must be relevant to the mother, and not the child. For example, items such as a bassinet, bottles or car seat are used to help in setting up and preparation for a child’s arrival, but the Court has previously found that these are items for the child, and therefore fall under child support, and not maintenance for the mother. However, living costs such as food, rent and utilities are items that could be claimed under this section of the Act.

The Court must ultimately consider how much the father is liable to contribute to the total costs of the mother’s childbirth maintenance and medical expenses. While it may seem fair that a father is liable to pay for half of those costs, the Court must take into account the following matters when making such a determination, pursuant to section 67C:

-          The income, earning capacity, property and financial resources of the mother and father to the child (but excluding any entitlement of the mother to an income tested pension or benefit);

-          Commitments of the mother and father to enable them to support themselves, or any other child or other person that person has the duty to maintain; and

-          Any special circumstances.

The Act provides that an application made for childbirth maintenance expenses must be made within 12 months of the child being born, so it is important to ensure that you are aware of this timeframe.

You should seek legal advice about your options in relation to making an application for childbirth maintenance. Contact Robinson + McGuinness today to arrange an appointment by email at info@rmfamilylaw.com.au or 02 6225 7040 or get started now online with one of our experienced lawyers.

Author: Catherine Finucane, August 2024

Parental Responsibility and Best Interests Explained

The passing of the Family Law Amendment Act 2023 has codified considerable changes to the concept of parental responsibility. Parental responsibility has been a central concept in family law matters for some time. It is the responsibility parents have in relation to major long-term decisions about the welfare and development of their child/ren, for example where they live, the school they attend, medical decisions, their name, and religious and/or cultural upbringings.

In 2006, changes to the Family Law legislation saw the introduction of the concept of equal shared parental responsibility, and provided that unless there were reasonable grounds to believe that a parent of the child has engaged in family violence that it would not be in the best interests of the child, that a presumption of equal shared parental responsibility applied. The Australian Law Reform Commission found in its 2019 report that the presumption that separated parents have equal shared parental responsibility for their child/ren was too frequently misinterpreted as a presumption of an equal shared care arrangement. The occurrences of misinterpretation of the law is said to have created a risk of harm to children.

The Family Law Amendment Act 2023 removes this presumption such that each parenting case before the Court will be evaluated on the matter’s specific merits, primarily focusing on the child/ren’s best interests. The Amended Act simplifies the objects of Part VII of the Family Law Act 1975 (Cth) as follows:

1.       To ensure that the best interests of the child are met, including by ensuring their safety; and

2.       To give effect to the Convention on the Rights of the Child.

The Amended Act simplifies the section 60CC factors  - those factors that the Court considers to decide what parenting arrangements will be in the best interests of the child – from the previous and hierarchical primary and secondary factors, to the-now six factors of general considerations and two further considerations if the child is Aboriginal or Torres Strait Islander. These six factors of general consideration are:

1)      What arrangements would promote the safety (including safety from being subjected to, or exposed to, family violence, abuse, neglect, or other harm) of:

a)       the child;

b)      and each person who has care of the child (whether or not a person has parental responsibility of the child); 

2)      Any views expressed by the child;

3)      The developmental, psychological, emotional and cultural needs of the child;

4)      The capacity of each person who has or is proposed to have parental responsibility for the child to provide for the child’s developmental, psychological, emotional and cultural needs;

5)      The benefit to the child of being able to have a relationship with the child’s parents, and other people who are significant to the child, where it is safe to do so;

6)      Anything else that is relevant to the circumstances of the child.

These simplified and streamlined factors are intended to provide the Court with wide discretion to make decisions which posit the safety of children at the forefront of any arrangement. Parents at all stages of the separation process will need to consider these changes. An understanding of who is able to exercise parental responsibility in relation to what issues, and how and when joint decisions are to be made in relation to children, is an important yardstick to achieving successful parenting outcomes.

The practical impacts of these changes are yet to be seen, and our team of family law experts at Robinson + McGuinness will be closely following the development of jurisprudence in relation to parental responsibility from decisions in both Division 1 and 2 of the Federal Circuit and Family Court of Australia. If you need clarification regarding these latest amendments to the Family Law Act 1975 (Cth) or you would like advice on how they may impact your situation, please contact our office on (02) 6225 7040 or by email on info@rmfamilylaw.com.au or get started now online.

Author: Lauran Clifton

Harman Undertaking: What is it and what does it mean for you?

In the recent decision of Lehrmann v Network Ten Pty Limited (Trial Judgment) [2024] FCA 369, Justice Michael Lee commented on Bruce Lehrmann’s likely breach of the implied Harman undertaking, arising as a result of Lehrmann releasing to Channel 7 documents obtained by him through the ACT Supreme Court proceedings. So, what is the Harman Undertaking and what does it mean for your family law matter?

What is the Harman Undertaking?

The Harman Undertaking is an implied undertaking by parties to litigation that they will not release information or documents which they have obtained during the course of litigation for an improper purpose.

Does the Harman Undertaking apply in family law matters?

Parties are prevented from using information obtained in family law proceedings for a purpose which does not relate to those proceedings, without seeking leave of the Court. For example, a party seeking to rely upon Subpoenaed documents in family law matters in support of an application for a protection order in the ACT Supreme Court.

In the case of Pedrana & Pedrana [2012] FamCA 348, the Wife was attempting to rely upon evidence obtained in family law proceedings as to the Husband’s income, in order to increase the child support payable by the Husband. Ultimately, the Court found that the documents could be considered by the Child Support Registrar, saying “It could not be viewed as an appropriate outcome that … the carer entitled to child support was unable to draw to the Registrar’s attention the fact that the liable parent had not given [relevant] disclosure because the carer entitled to child support was constrained from doing so because of the Harman obligation and was required to go back to court to get permission to do so”  Although approved in this matter, parties should exercise caution and seek legal advice if considering releasing documents obtained in family law proceedings.

Who is bound by the Harman Undertaking?

Parties to litigation are bound by the Harman Undertaking. It also extends to parties’ solicitors, and other third parties in possession of documents relating to family law proceedings.

What are the consequences of breaching the Harman Undertaking?

The Court in which the confidential information was obtained has the discretion to determine consequences of a breach of the Harman Undertaking. The consequences may include the non-compliant party being held in Contempt of Court, or the Court ordering that the non-compliant party meet the costs of the other party or parties.

What does it mean for your family law matter?

1.      You should keep confidential information or documents obtained in the course of family law proceedings, in order to comply with the Harman Undertaking, and also to comply with Section 121 of the Family Law Act 1975 which prevents publication of information relating to family law proceedings;

2.      If you wish to use information or documents obtained in family law proceedings for another purpose, you need to seek permission of the Federal Circuit and Family Court of Australia before providing the confidential information;

3.      You should be aware that the Harman Undertaking doesn’t only apply to litigants. It also applies to solicitors or other third parties who are made aware of the confidential information;

4.      You should seek independent legal advice about your obligations in relation to confidentiality in family law proceedings.

For advice in relation to your family law matter, 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.

Author: Margot McCabe

Child Inclusive Mediation: Can my child have a say?

The time of separation can be associated with complex feelings of loss and grief. It is usually at this exact time that parents are expected to make very important decisions about parenting moving forward. What household will our children live in? How much time will they spend with me and with the other parent? How are our children expected to transition into this completely novel arrangement? The resolution of parenting arrangements after separation can often be a complex process, not least of which because the idea of having to give up any time with a child can be an extremely daunting prospect when a person is already experiencing the grief and loss associated with the breakdown of their relationship with their former partner.

Separated parents usually attempt to organise their parenting arrangements via discussion, compromise and through participation in dispute resolution, such as mediation. Of course, this is a requirement under Part VII of the Family Law Act 1975 (Cth) (the Act), save for a handful of exceptions outlined at section 60i(9) of the Act. Where parents can reach agreement, these are usually documented through a parenting plan or a binding agreement made by the Court (known as Consent Orders).

Fundamental to the dispute resolution process in relation to parenting, is the ability for separated parents to put aside what their individual wishes might be in relation to the care arrangements of the child, and to put the child’s best interests and developmental needs above their own. Sometimes traditional models of family dispute resolution and mediation do not fit the needs of separated parents and their children. It might be that Child Inclusive Mediation would be a more suitable process for these families to partake in.  A Child Inclusive Mediation provides the opportunity for the child to express their views to an independent third party- views which might not otherwise be expressed within the confines of the family dynamic.

A Child Inclusive Mediation usually involves you and the other parent, and the child (or children) separately attending upon a qualified child expert or specialist for the purpose of an interview. This child expert is usually someone who has tertiary qualifications in child psychology and oftentimes will be dually qualified in family law. They will ask subtle and non-confrontational questions to adduce the child’s views on the arrangements and ascertain any effects of the separation on the child/children.

The parents will then attend a mediation separately. It is important that parents understand the child (or children) will not attend this aspect of the Child Inclusive Mediation. The child expert may act as mediator as well, provided they have the requisite qualifications, or will remain in attendance with the mediator to provide insight into the children’s views throughout the mediation process. The child expert will usually convey what the children have told them in their private sessions, provide an expert opinion on this, and identify any potential pathways forward. It is hopeful that the parents can then come to a parenting arrangement which takes into account the child’s views, in a very safe and child focussed manner.

Not every family dynamic is suitable for Child Inclusive Mediation. The Family Law Act provides that the Court can have regard to any views expressed by the children when determining what Orders to make. However, for really young children, how much weight can the Court attach to their views? For adolescents or late teens, the weight the Court would attach to their views would likely be much higher. A Child Inclusive Mediation, might be very helpful if you have children who are of an age where they can clearly express their views and wishes. If you believe your family may benefit from Child Inclusive Mediation, or you are considering whether this is a suitable process for you, do not hesitate to reach out to our team of experienced family lawyers here at Robinson + McGuinness Family Law.

For advice in relation to your family law matter, 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.

Author: Lauran Clifton

Reconsideration of Final Parenting Orders – the new section 65DAAA of the Family Law Act codifies the long-standing rule set out in Rice & Asplund.

Final parenting Orders are made every day, either by consent, or following protracted litigation in the Federal Circuit and Family Court of Australia. It is intended that final parenting Orders apply and operate until the children turn 18 years old. However, it is sometimes necessary for final parenting Orders to be reconsidered prior to their expiry to ensure that the Orders continue to operate in the best interests of the children.

Commencing 6 May 2024, the Family Law Act 1975 will be amended to insert a new section 65DAAA into the Act; this new section of the Act will specifically deal with the reconsideration of final parenting Orders (something which previously has only been dealt with by case law).

The new section 65DAAA will state:

If a final parenting Order is in force in relation to a child, a court must not reconsider the final parenting order unless:

1. The Court has considered whether there has been a significant change of circumstances since the final parenting order was made; and

2. The Court is satisfied that, in all circumstances (and taking into account whether there has been a significant change of circumstances since the final parenting order was made), it is in the best interests of the child for the final parenting order to be reconsidered.

The new section 65DAAA will apply to all matters before the Court from 6 May 2024.

The new section 65DAAA is a codification of the principle set out in the case of Rice & Asplund, which provides that the Court should only hear an application to alter an earlier parenting Order if the Court is satisfied that there has been a material change in circumstances such that a rehearing of what is in the children’s best interests is warranted.

When deciding whether there has been a significant change in circumstances, such to justify the reopening of the proceedings, the judicial officer is required to make a discretionary decision about whether the Applicant’s evidence demonstrates a prima facie change in circumstances and weigh the significance of that change, against the potential benefit or detriment to the children caused by the reopening of the proceedings.

What is a significant change in circumstances?

With the amendments not due to come into effect until 6 May 2024, there is no current case law outlining what the Court considers to be a significant change in circumstances. However, until such case law exists, it is expected that the Court will have regard to previous case law which has dealt with the principle set out in Rice & Asplund.

Rice & Asplund considers material changes in circumstances; examples of which include:

• A decision by one of the parties to relocate which was not contemplated at the time of the final parenting Orders being made;

• The views of a child in circumstances where time has elapsed since the making of the final Orders; and

• A change in a parent’s mental health and wellbeing.

A further discussion about what is classified as a material change in circumstances can be found here.

The Court does not entertain applications to amend or set aside an earlier parenting Order lightly. If you are considering such an application it is important that you obtain specialist family law 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.

Financial resources and how they impact property settlements

The definition of “property” in the context of a property settlement in Australia is outlined in section 4 of the Family Law Act 1975 (“FLA”). It defines the “property" as:

(a) in relation to the parties to a marriage or either of them--means property to which those parties are, or that party is, as the case may be, entitled, whether in possession or reversion; or

(b) in relation to the parties to a de facto relationship or either of them--means property to which those parties are, or that party is, as the case may be, entitled, whether in possession or reversion.

The property pool that is considered available for division between separated couples usually includes assets such as cash in bank accounts, real properties, shares, investments, superannuation, motor vehicles, furniture, jewelry, business interests, etc.

While the definition of financial resources differs from assets when considering a property settlement, the FLA does not provide a specific definition for it. In the High Court case of Hall & Hall [2016] HCA 23 defined a financial resource as “a source of financial support which a party can reasonably suspect to be available to him or her to supply a financial need or deficiency”.

A financial resource may have the potential to generate future income or to give access to capital, which may not be immediately divisible but can influence the financial situation of a party in the future.

The Court may take into account financial resources of the parties and may adjust the division of the property pool having regard to those financial resources. Such adjustments will usually be based on the future needs of each party, ensuring a fair distribution that accounts for both current assets and future financial prospects.

Financial resources may include:

• Future Inheritances: Expecting to receive an inheritance even if not in the near future, can still be considered a potential financial resource. It can significantly impact a party's future financial security/position.

• Trust Beneficiaries: Interests in trusts, especially where an individual is a discretionary beneficiary, may not provide immediate financial benefits but can be regarded as a potential future income stream or cash flow, depending on what has happened in the past.

• Superannuation Interests: A superannuation interest is generally treated as property and can be available for spitting if necessary. However, the defined benefit superannuation schemes, known for their (at times, generous) pension phase, may generate significant income for one party upon retirement. Therefore, this entitlement is considered more as a valuable financial resource than mere property, especially in the long term. Consideration must be given to the nature of the interest at the time (i.e. whether it is in the growth phase or payment phase).

• Employment Leave: Significant periods of leave, such as long service leave may be seen as financial resources. This perspective was supported by Baker J in the Whitehead case (1979), where it was concluded that accrued long-service leave entitlements constitute a financial resource rather than an asset.

• Pending Legal Claims: An anticipated payout from litigation, such as a personal injury claim or other litigation where a financial settlement is expected, are likely to be included as they represent a future financial benefit.

• Loan Repayments: The expected repayment of loans owed to an individual can improve their financial position once received, and therefore be taken into account.

• Business Goodwill: The value associated with a business’s reputation and client relationships, particularly if it could generate financial gain beyond tangible assets, can also be considered as a financial resource.

• Tax Losses: Tax losses that can be used to offset future taxable income, therefore improving financial status, can also be seen as a financial resource.

• Support from Family Members: Regular or reliable financial support or expected support from family members, while not a formal asset, can be considered a financial resource due to its potential effect on an individual's financial position.

In summary, the consideration of relevant financial resources is essential for achieving a fair and equitable property settlement when negotiating a property settlement with a former spouse. The identification of these resources is important and should not be overlooked.

If you are exploring a property settlement and you need family law advice it is beneficial to see a specialist. To make an appointment with a member of our team please contact us today at (02) 6225 7040 or by email info@rmfamilylaw.com.au.

Property Settlements: The death of a party

When one party of a breakdown relationship is terminally ill, it can have significant implications to the distribution of their property, if the party passes away. Whilst a morbid and uncomfortable topic, it is an extremely important one to consider, as it can have serious consequences on a party’s assets, and how they are dealt with after a party’s death.

Death prior to commencing proceedings

Where neither party has commenced court proceedings in the Family Law jurisdiction, the matter will be dealt with under the estate law of the applicable state or territory of Australia. This might mean that if the terminally ill party did not update their will after separation, their former spouse (if provided for in the deceased’s will) may inherit from their estate. This may or may not be the intention of the deceased party.

Seeking legal advice becomes even more pertinent in family law matters when one party is terminally ill. Generally most parties will attempt to resolve their matter outside of the Court system, through independent negotiation and sometimes formal mediation. These pre-action procedures still apply despite the ill-health of a party.

However, if the matter is unable to be resolved through these means, sometimes the only alternative course of action is to make an application to the Federal Circuit and Family Court of Australia to resolve the matter.

Death after commencing proceedings

So, what happens when a party dies prior to a matter being resolved, but after filing an application? Where proceedings have commenced in the Family Law jurisdiction, and a party dies, Section 79(8) of the Family Law Act 1975 (Cth) and Rule 3.19 of the Family Law Rules 2021 apply. The Court may allow for the substitution of the deceased party by their legal personal representative - usually the executor of their estate, or another appropriate party - to ensure the legal proceedings can continue.

The personal legal representative will usually engage in Family Law proceedings with the view of recovering the deceased’s share of the matrimonial property pool for distribution according to their will. However, it is important to remember that the Orders that the Court will ultimately make are likely to be significantly different to the Orders the Court would have made if the party had not died. One example of how such a difference in outcome occurs is that the Court cannot consider the future needs of a party if they have passed away.

Family law and the death of a party can be complex and nuanced. In the event you are faced with this circumstance, you should obtain specialist family law advice. Contact Robinson + McGuinness to arrange an appointment on 02 6225 7040 or by email at info@rmfamilylaw.com.au or get started now online with one of our experienced lawyers.

Author: Lauran Clifton

Travel and Parenting Orders

With the school holidays fast approaching, many parents will be travelling internationally with their children. These experiences are seen as a once in a lifetime opportunity for lots of families and the benefits of international travel on the growth of a child can be intangible. As a separated parent, travelling with children gives rise to additional considerations and planning- on top of the effort which already goes into the trip itself.

This situation becomes complex for separated parents who are involved in current proceedings before the Federal Circuit and Family Court of Australia or where separated parents have already entered into parenting orders restricting their children from international travel. Sections 65Y and 65Z of the Family Law Act 1975 (Cth) specifically set out that if a parent, who is subject to a parenting order or where orders are pending (for example, awaiting the delivery of a judgment on an interim or final basis) removes a child from the jurisdiction of Australia, this parent has committed an offence. This offence carries a penalty of three years imprisonment.

What if I do not have orders in place or I am not in litigation?

A separated parent seeking to travel overseas with their children should approach the other parent and seek their consent for the travel in the first instance. Ideally, the parent seeking to travel would provide all the relevant information and details of the proposed travel- and with as much notice as possible- including duration, destination, method of travel, copies of travel tickets and itinerary, and where possible provide options for maintaining communication between the other parent and the children whilst overseas.

If the other parent refuses consent to the travel, you may need to apply to the Federal Circuit and Family Court of Australia for approval to travel. It is commonplace for this Court to make Orders pertaining to travel and provide for international travel so long as enough notice is provided, and the travel is to a Hague Convention Country, and that they are satisfied that the child will return to Australia at the end of the proposed travel. Often, the Courts order makeup time for the non-travelling parent if time with that parent is affected by the child’s travel.

What if I have concerns about my child’s international travel with the other parent?

In some cases, parents will have genuine concerns about a child travelling internationally for a number of reasons- risks to personal safety and wellbeing; impact on education if the child is missing school for a prolonged period of time; and where the parent holds a genuine concern that the child might be permanently removed from the jurisdiction of Australia. There may be valid reasons for a parent to not provide consent to the travel.

If you hold this concern about your child’s travel, you can make an application to the Federal Circuit and Family Court of Australia to have the child placed on the Australian Federal Police Watchlist. This can only occur via a Court Order and will prevent that child leaving any port of exit from the jurisdiction of Australia. In cases of urgency- where you have a grave concern that your child will be travelling imminently with the other parent- this process can occur very quickly.

It is important for separated parents to balance the benefits of overseas travel for their children with the possible competing interests of ensuring their safety and wellbeing. It is important to seek the other parent’s consent in the first instance when seeking to take your child overseas- and with enough notice where possible. If you are planning a holiday with your children, contact Robinson + McGuinness for specialist family law advice.

Contact Robinson + McGuinness today to arrange an appointment on (02) 6225 7040, by email at info@rmfamilylaw.com.au or get started now online with one of our experienced lawyers to obtain advice.

Author: Lauran Clifton

Spousal Maintenance – What is it and who can apply for it?

The breakdown of a relationship is a daunting process for many; there are several unknowns, including how life will be funded without a dual income pending the completion of a property settlement.  More often than not, there is an income discrepancy between the parties of the relationship, and this can cause anxiety for the party with a lower income. They may be concerned about how they will afford basic living expenses and accommodation.  

What is spousal maintenance?

The Family Law Act places an obligation on a party to a marriage or de facto relationship to maintain the other party, to the extent that they are reasonably able to do so, in the event that the other party is unable to support themselves adequately due to:

1. The care of a child under the age of 18 years;

2. The party’s age, physical or mental incapacity to gain meaningful employment;

3. Or any other matter considered relevant by the Court.

This obligation is known as spousal maintenance.

In more general terms, spousal maintenance becomes applicable when one party has a shortfall between their income and outgoings, and the other party has the capacity to assist in meeting those outgoings once they have paid for their own reasonable expenses.

There are many forms of spousal maintenance, including:

• Urgent spousal maintenance – where the Court can make an order pending consideration of the need for ongoing maintenance;

• Periodic spousal maintenance – where the Court makes an order, either interim or final, for payments to be made for a period of time (i.e. weekly);

• Lump sum spousal maintenance; and

• An order for the sole use of property (i.e. the former matrimonial home or a vehicle).

Spousal maintenance orders tend to be made on an interim basis, or for a set period on a final basis, to enable the applying party’s circumstances to change such that they can financially support themselves (i.e. return to work once young children go to school, complete studies that will allow them to obtain meaningful employment, or the completion of a property settlement which accounts for the parties’ future needs, including incomes disparity and age).

Who can apply for spousal maintenance?

Spousal maintenance proceedings can be commenced by either party to a marriage or a de facto relationship.  The proceedings can be commenced as follows:

• For married couples: during the relationship, at any point following separation and within 12 months of a divorce order being granted; and

• For de facto couples: within 2 years of separation.

Spousal maintenance proceedings are separate to property settlement proceedings.  While they often run concurrently, there is no need to have a property settlement application before the Court in order to commence spousal maintenance proceedings.

What evidence is required?

When applying for spousal maintenance, the applicant will need to give evidence about the following matters:

• The nature of their relationship with the other party – i.e. was there a marriage or de facto relationship?  

• If the proceedings are to be commenced out of time (see time limits above), an explanation as to why that is the case and a request for leave to apply out of time must be made.

• The applicant’s income and reasonable living expenses.

• Details of why the applicant says they are unable to adequately meet their expenses – i.e. is there something that precludes them from obtaining meaningful employment, or employment with greater renumeration?  Evidence should also be given about the arrangements that were in place during the relationship – i.e. if the Applicant was the primary carer of small children during the relationship, this is a relevant factor for the Court to consider.

If applicable, independent evidence should also be provided to the Court to assist the determination of a spousal maintenance application. Independent evidence would be applicable if, for example, the applicant said they were unable to work due to a disability or illness.

No two family law matters are the same, and while there can be similarities between cases each case must be assessed based on its own facts.  In the event you are considering filing a spousal maintenance application you should first obtain specialist family law advice in relation to the evidence that you can give in support of your application, and the prospects of your application being successful.

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.

Author: Peta Sutton

Trusts & Family Law

Trusts, and specifically discretionary family trusts, are commonly utilised as means of holding income generating assets and distributing that income to beneficiaries, who are often family members. When a relationship breaks down, and one or both of the parties hold assets in a trust, questions often arise as to how the trust, and the property of the trust, will be dealt with in the family law settlement. Trusts can be a complex area in settlements, as sometimes they are used by one party to protect or exclude assets, or to prevent the other party from accessing their share of the property.

There is a misconception that if assets are held in a trust, they are to be excluded from the property settlement. This may or may not be the case depending on the structure, composition and set up of the Trust.

There are two ways trusts are likely to be dealt with by the Court- it can be treated as an asset to be included in the matrimonial asset pool or as a financial resource. Trusts are more likely to be considered an asset for distribution if the Court is satisfied that the Trusts’ assets form part of the property of the parties to the marriage or de facto relationship. Under section 4 of the Family Law Act 1975 (Cth) “property” holds a very broad meaning, and the Court has demonstrated its willingness to include trust assets in a property division where certain factors relating to “control of the trust” exist. Where one party has effective control of the trust (i.e. if one party is the trustee, or an appointor) it is more likely to be included as property to be distributed in a family law settlement (see Kennon v Spry [2008] HCA 56 (3 December 2008)).

The Court has also demonstrated that where trust assets do not fall within the definition of property, the Court can still consider whether the parties have received benefits or distributions from the Trust and whether they are likely to in the future, notwithstanding a lack of control over the trust. In this scenario, the Court is likely to consider Trust property as a financial resource of that party under section 75(2) of the Act when determining the overall settlement.

Trusts are a complex area of family law and can require the input and advice of financial advisors, accountants, and solicitors. Whether a trust asset will form part of the matrimonial asset pool available for distribution and whether it is outside of the reach of a property settlement in the context of family law will depend on the specific circumstances of your matter.

For specialist family law advice, including the effects of trusts in a family law property settlement, contact Robinson + McGuinness to arrange an appointment on (02) 6225 7040, by email at info@rmfamilylaw.com.au or get started now online with one of our experienced lawyers to obtain advice.

Author: Lauran Clifton

Assessing contributions

Assessing contributions is an important step in determining how to arrive at a just and equitable property settlement between separated couples.

What contributions does the Court consider? 

Section 79 and 90SM of the Family Law Act 1975 requires an assessment of the following contributions:

1. Financial contributions towards the acquisition, conservation, and improvement of property. These contributions may include financial contributions received by way of income, inheritances, redundancy payments, compensation awards, and windfalls such as lottery wins;

2. Non-financial contributions made towards the acquisition, conservation, and improvement of property. These contributions may include a party conducting renovations toward real property at no cost; and

3. Contributions made towards the welfare of the family through homemaking and parenting contributions.

When does the Court assess contributions? 

The Court assesses contributions made at the commencement of the relationship (in particular, whether one or both parties had significant assets at the commencement of the relationship), during the relationship, and post-separation (if relevant).

What weight is given to contributions made by either party? 

The weighing of contributions is not a mathematical exercise. Weighing of contributions has been described by the Court as being a holistic assessment of the myriad of contributions that are made by parties throughout the course of their relationship.

Each case is different, and all contributions made by parties are unique to their own circumstances. The Court has the discretion to make an adjustment in favour of either party after assessing those contributions.

The size of the adjustment given to a party based on their contributions will depend on a range of factors including the contribution that was made relative to the asset pool that exists (in the case of a financial contribution) or the passage of time since that contribution was made, and importantly, weighing the relevant contribution against contributions made by the other party to the relationship or marriage.

Do some contributions carry more weight than others?

Historically, the Court placed more weight upon financial contributions (by way of income) over contributions made as homemaker and parent, in cases where it was said that the primary income earner exercised “special skill” in order to make those financial contributions. In traditional relationships at that time, this would advantage the primary breadwinner (often the Husband) and disadvantage the party who had made contributions within the home that prevented them from earning an income (often the Wife). The Court has since disapproved of that approach and “special skills” are no longer recognised as being a particular category of financial contribution.  

For specialist advice regarding your property settlement, 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. The sooner you seek advice the better – so you can make informed decisions about your options.

Author: Margot McCabe

Parental Responsibility Explained

‘Parental responsibility’ refers to the duties, powers and responsibilities that a parent has in relation to a child.  This becomes an important consideration as you navigate the journey of co-parenting after separation.

Parental responsibility determines who makes long-term decisions about a child, such as what school a child attends, where a child lives and whether a child practices a religion. Section 65DAE of the Family Law Act 1975 (Cth) provides that parents are not required to consult on day-to-day issues (or issues that are not major long-term issues) – for example, what a child wears or what type of food a child takes in their lunchbox.

In the absence of a Court Order determining parental responsibility, there is a presumption that both parents have ‘equal shared parental responsibility’ (also referred to as ‘ESPR’).  ESPR requires that parents consult with each other about any long-term decision to be made, and make a genuine effort to come to that decision jointly.

This presumption is set out in section 61DA of the Family Law Act.  The presumption of ESPR does not apply if there are reasonable grounds to believe that a parent of a child has been abusive towards that child (or another child in the family), or if they have engaged in family violence, including towards the other parent.

If there is enough evidence to satisfy a Court that an order for ESPR is not appropriate in the circumstances, the Court may make an order for ‘sole parental responsibility’.  A Court may consider that an order for sole parental responsibility is appropriate if the parents are unable to make decisions jointly, or if the communication between the parents would make an order for ESPR untenable.

On a final basis the Court must disregard any orders made on an interim basis about the allocation of parental responsibility. This means if your matter is in Court and an order has been made for ESPR on an interim basis, the Court may ultimately decide that ESPR is not appropriate on a final basis.

It is also important to understand that parental responsibility does not determine what time a child spends with each parent. An order for ESPR does not automatically mean that a child will spend equal time with each parent. Courts will consider what is in a child’s best interests and whether an equal time arrangement would be reasonably practicable, among other things.

If you are unable to reach a joint decision about a major long-term issue regarding your child, or if you are concerned about sharing parental responsibility with your former spouse, you should contact a family lawyer to better understand your rights and obligations. If you are ready to book an initial appointment with a specialist family lawyer in Canberra, contact us on (02) 6225 7040, by email at info@rmfamilylaw.com.au or get started now online with one of our experienced lawyers to obtain advice.

Author: Anika Buckley

Enforcement of Financial Orders

The Family Law Act sets out options available to parties to seek enforcement of Orders in relation to financial matters. Regrettably, in some cases, it can become necessary to seek enforcement of Orders where a party is not compliant with Orders of the Court.

When can I seek enforcement of Orders?

Enforcement can be sought where pursuant to Orders, maintenance agreements or Binding Financial Agreements made pursuant to the Family Law Act:

1. There is an obligation on a party to pay money;

2. There is an obligation on a party to sign a document;

3. A party is entitled to possession of real property; or

4. A party is entitled to transfer or delivery of personal property.

Although less common, there are other circumstances in which a party can take enforcement action against a non-compliant party, such as there where a party has registered an arbitral award, a child support liability or where there is an overseas maintenance order that has been registered in Australia.

How do I enforce Orders?

Methods of enforcement available to a party seeking compliance with Orders pursuant to the Family Law Act include:

1.  Appointing a Registrar of the Court

   A Registrar of the Court can be appointed to sign documents in place of a non-complaint party, such as Transfer documents in order to progress the transfer of a house, transferring shares or, closing bank accounts.

2. Third Party Debt Notice

   A Third Party Debt Notice requires a third party to discharge a debt by redirecting funds to which the non-compliant party would otherwise be entitled, to the party seeking enforcement. For example, a party seeking enforcement could seek that the non-compliant party’s wage be directed to them instead over a period of time in order to satisfy a debt.

3. Trustee for sale of real property

   If an Enforcement Warrant has been obtained in relation to real property in which the non-compliant party has an interest, a party can seek to be appointed as Trustee for Sale of real property. If a party is appointed as Trustee for sale it will generally be necessary to also seek that a Registrar of the Court be appointed to execute documents on behalf of the non-compliant party (as above).

4. Warrants for possession of property

   A party seeking enforcement of Orders can apply for a warrant for possession of real property, personal property, or for the seizure or detention of property owned by the non-complying party, which can then be sold, for example, to satisfy a debt.

There are other forms of relief available to a party seeking enforcement of Orders, including sequestration of property, receivership and seeking that a non-complaint party be declared bankrupt. It is likely that the Court would only adopt such methods of enforcement if other attempts at enforcement had been exhausted or there were circumstances justifying forms of enforcement that could be considered severe or prejudicial to the non-compliant party.

Can I seek that my legal costs be paid by the non-compliant party?

The Court has general powers of enforcement, including the power to make Orders that one party pay the other party’s costs. Although costs to do always “follow the event” i.e., the winning party does not always get their costs reimbursed, the Court is sometimes more inclined to order that a non-compliant meet the other party’s costs of enforcement, arising out of the non-compliant party’s failure to comply with an Order of the Court, as it has been unfair that the applicant has had to pursue such steps.

For specialist family law advice including about enforcement, 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.

Author: Margot McCabe

Protection and Separation

Separating from a spouse can be one of the riskiest times for an individual, particularly where family violence has been a feature of the relationship. The legal definition of ‘family violence’ can be found at section 8 of the Family Violence Act 2016 (ACT) or section 4AB of the Family Law Act 1975 (Cth). The definition in both pieces of legislation is broad and canvasses many different types of behaviour that constitute family violence.

Sometimes an individual may not recognise that certain behaviours they have experienced during their relationship constitute family violence until they are out of that relationship. Other times, an individual may have felt powerless or not known what avenues are open to them to protect their safety.

In the ACT, any person can apply for an interim Family Violence Order (FVO) for their immediate protection, or to prevent substantial property damage. Applications for a FVO are generally heard ex parte, meaning that the Court considers the applicant’s evidence in the absence of the respondent (the person who the FVO is being sought against).  

If the Court is satisfied that an applicant is in need of immediate protection, an interim FVO will be granted on the same day as the application is made. The interim FVO generally remains in place for 12 months, pending a final hearing where the Court will determine the application on a final basis (namely whether a final order should be made protecting the applicant). An interim FVO can be extended in some circumstances.

In the ACT, the Australian Federal Police will serve a copy of the application and the FVO on the respondent.

Either party can file documents seeking to amend an FVO, if amending the order will not adversely affect the safety of the protected person. For example, if the protected person’s circumstances have changed since the making of the FVO, or if the FVO restricts the respondent’s rights unnecessarily.    
If you are experiencing family violence, or are at risk of experiencing family violence, it is worthwhile speaking to one of our experienced family lawyers. We can advise you on your prospects of successfully obtaining an FVO and what type of restrictions you might want to seek in a protection order based on your experiences in the relationship, and your concerns.  

We can also advise on the next steps once an FVO has been granted (whether you are the applicant or the respondent), including any flow-on effects that an FVO may have on your family law matter.

In the event you are concerned for your safety, there are a number of services available to you:

1. If you are concerned for your immediate safety, you should contact 000.

2. The Domestic Violence Crisis Service offers assistance with safety planning and can be contacted on (02) 6280 0900.

3. To discuss a potential breach of a Family Violence Order, you should contact 131 444 (the non-urgent ACT Policing number).

For advice in relation to your property settlement, 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.

Author: Anika Buckley

Costs: When can you seek that one party meet your legal costs of family law proceedings?

The Family Law Act provides for each party to bear their own legal costs. In some cases however, a party may seek that the other meet their legal fees.

Section 117(2) of the Act provides that the Court may make an order that one party meet the other party’s costs of Court proceeding, “if there are circumstances that justify it doing so”.

Costs applications are commonly made where one party has made an offer to resolve the proceedings, the offer is rejected by the other party, and then the first mentioned party goes on to receive a similar or more advantageous outcome than the offer that was refused.

If I am successful in the proceedings, do I automatically get a costs order?

Costs will not automatically be awarded at the conclusion of a hearing. This is consistent with the general principle in family law proceedings that each party will be responsible for meeting their own costs.

If you wish to seek that the other party meet your costs, it will be necessary to file an Application, with a supporting Affidavit. The Court will conduct a separate hearing of your costs application, either by considering the documents in Chambers (where the parties do not need to appear) or at a hearing. Unfortunately, this means that you are likely to incur further legal costs whilst seeking that the other party meet your costs of the proceedings.

What will be considered when determining a costs application?

The Court will have regard to the following matters, as identified in section 117(2A) of the Family Law Act:

1. The financial circumstances of each of the parties to the proceedings;

2. Whether any party to the proceedings is in receipt of assistance from Legal Aid, and the terms of that assistance;

3. The conduct of the parties to the proceedings;

4. Whether the proceedings were necessary as a result of one party’s failure to comply with Orders of the Court;

5. Whether any party to the proceedings has been wholly unsuccessful in the proceedings;

6. Whether any party to the proceedings has made an offer of settlement in writing to the other party, and the terms of any such offer;

7. Any other relevant matter.

Will I be reimbursed all of my costs?

If a costs order is made, it will not necessarily provide for you to be reimbursed for the amount you spent on the litigation. The Court can consider awarding costs from the date that the offer was made (and for rejected) until the conclusion of the proceedings for example.

The Court has the power to order that a party meet the other party’s costs of the proceedings on an indemnity basis, or in accordance with a scale of costs set in the Federal Circuit and Family Court (Family Law) Rules 2021. The scale of costs set in the Family Law Rules is significantly lower than the costs that a party would likely have incurred with their solicitor.

Indemnity costs effectively provide for a party to be reimbursed the costs incurred by them with their solicitor (for the relevant period, from when the offer was made until the conclusion of the hearing). It is rare that the Court orders one party to pay costs on an indemnity basis. In order to do so, the Court must be satisfied that a party “imprudently refused of an offer to compromise”, as found in the case of Colgate-Palmolive v Cussons [1993] FCA 536. Indemnity costs can also be ordered against a party who has failed to comply with Court Orders or who has improperly conducted themselves throughout proceedings.

The Court may also order that costs be paid as assessed or agreed, whereby if the parties cannot agree on the amount of costs to be paid, an independent assessor can be appointed to determine the amount of costs payable, based on what costs were reasonably incurred during the proceedings. The costs assessor is entitled to be paid for their work in assessing the costs also.

What does this mean for me?

The above matters emphasise the importance of making reasonable offers to resolve your family law matter, and also the necessity to consider any offer of settlement very carefully.

If you wish to obtain advice in relation to your family law matter, 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.

Author: Margot McCabe

Family Law and financial disclosure: What you need to know

The Family Law Act 1975 and Federal Circuit and Family Court of Australia (Family Law) Rules 2021 sets out the obligations on parties to provide full and frank financial disclosure of their financial circumstances. Parties have an ongoing obligation to provide information and documents relating to their income, property and financial resources. Having transparency regarding the financial circumstances of the other enables parties to be able to negotiate a robust settlement, and indeed, a financial settlement cannot occur if the asset pool is unknown.

What information do I need to provide?

You have an obligation to provide information and documents in relation to income, financial resources, assets, liabilities, and superannuation in which you have a legal or equitable interest.

The obligation to provide financial disclosure only extends to documents which are in your possession or control. Generally, a party is able to access documents such as bank statements, Notices of Assessments issued by the ATO, superannuation statements, etc. A party may receive a request for disclosure documents where they cannot fulfill the request. This could occur, for example, where disclosure may be sought in relation to the quantum of a distribution received from an inheritance or compensation award, when the amount may not yet be determined.

Do I need to comply with all requests?

A request for disclosure should be answered within a reasonable timeframe, subject to the request for documents being reasonable, and relating to the issues in dispute.

If you have received a request for financial disclosure which you think is unreasonable, seek legal advice.

Is it sufficient to provide information about my financial circumstances?

By agreement, parties can exchange information relating to their financial circumstances, as opposed to a formal exchange of documents. However, a party is entitled to request documents, if that remains their preference.

Can I provide disclosure of the value of my interest in property at the date of separation?

It is necessary to provide financial disclosure in relation to the current value of assets, liabilities and superannuation. Although the value of property at the time of separation may be a relevant consideration, as well as what contributions have been made by each party following separation, generally the Court requires the most up to date information about the value of assets, liabilities or superannuation, rather than adopting the values of property as at the date of separation.

Do I need to provide more information after we have participated in an exchange of financial disclosure?

The obligation to provide financial disclosure regarding your financial circumstances is an ongoing obligation. It is necessary for parties to provide updates in relation to their financial circumstances  until a property settlement has been finalised, either by entering into Orders or a Binding Financial Agreement. That obligation exists irrespective of whether there has been a request for updating financial disclosure. If your financial circumstances materially change, there is an obligation to inform your former partner about that change.

What does this mean for you?

If you are uncertain about your legal obligations in relation to the provision of financial disclosure, or your former partner is refusing or delaying the provision of financial disclosure, you should seek legal advice.

It is prudent to obtain advice tailored to your circumstances from a family lawyer, ideally as soon as possible after separation, in order to preserve your interests. 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.

Author: Margot McCabe