Addbacks in Property Settlements: Shinohara v Shinohara [2025] FedCFamC1A 126

The Full Court of the Federal Circuit and Family Court of Australia recently confirmed in Shinohara v Shinohara [2025] FedCFamC1A 126 that 'addbacks' are to no longer form part of the balance sheet in property proceedings. This results from the Family Law Amendment Act 2024, which came into effect in June 2025.

Previously, Courts could notionally “add back” assets that no longer existed at the time of a hearing, for example, money that has been wasted or spent by one party on legal fees. Even though the asset no longer existed, its value could still be included in the asset pool for division.

The Court has now confirmed that only existing property at the time of trial is to be included in the balance sheet for division. Williams, Altobelli and Campton JJ state at [121] “The text of s 79(3)(a)(i) is clear. Only the existing property of the parties is to be identified, and only that existing property is to be divided or adjusted.”

Notwithstanding the above, the principles underpinning the existence of addbacks have not been disregarded entirely. Williams, Altobelli and Campton JJ continue at [125]: “s79 now directs that the categories identified in Omacini pre-amendment that were notionally added back are to be considered in ensuring a just and equitable outcome, either by way of historical contributions, or by way of their relationship to and impact upon the current and future circumstances at the s 79(5) stage.”

The Full Court further noted: “The holistic approach in assessing and determining contributions and adjustments thereto…remains applicable. Each of the considerations, by either s 79(4) or s 79(5), requires engagement with the circumstances of the disposal of property, the value it achieved, and its use and application being considered and weighed to achieve the mandate of justice and equity that permeates s 79 of the Act” [126].

The conclusion reached by the Court in Shinohara suggests the approach taken to the disposal of assets in property proceedings will need to change. Parties can no longer rely on assets being notionally added back to the property pool and will instead need to seek that these matters form part of the Court’s holistic assessment of the parties’ current and future circumstances.

You may wish to seek specialist family law advice about your circumstances, particularly if you are concerned your ex-partner is reducing your combined property pool. If you would like to discuss your matter and how we can assist you, please contact us today on (02) 6225 7040 by email info@rmfamilylaw.com.au or get started now online.

Guiding you through Family Court proceedings – Dispute Resolution

If your matter is already in Court, you may be wondering what happens next. Whilst you may be aware of the initial steps, the procedural pathway isn’t always clear to parties involved in Court proceedings.

The first time that your matter comes before the Court is usually the first return (see our blog post about the first return here if you have not already). If there are issues in dispute which require immediate determination, it may be necessary for your matter to be listed for an interim hearing (see also here for our blog post about the interim hearing).

After your matter has been listed for a first return and/or interim hearing, the next time your matter comes before the Court will likely be for a further directions hearing where a Judicial Registrar is likely to make orders about the future progression of your matter. This can occur at a further directions hearing; orders can be made at the conclusion of an Interim Hearing; or judicial officers will often grant leave to parties to provide consent orders for the Court’s consideration if the parties reach agreement about procedural matters (on an interim or final basis about any issues in dispute).

After any necessary interim hearing and prior to your matter being listed for a final hearing, it is likely that a judicial officer (such as a Judicial Registrar, a Senior Judicial Registrar or a Judge) will require parties in a matter to participate in dispute resolution. Dispute resolution can include a mediation, a family dispute resolution conference or a conciliation conference. The dispute resolution process can be Court-based or external, such as a private provider or through Legal Aid.

In a property matter where both parties have funds and financial resources available to them, parties may choose to participate in a private mediation whereby they select their preferred mediator. Orders providing for the parties to participate in a private mediation can usually be reached by agreement.  If there is disagreement about the proposed mediator and/or payment of the mediator’s fees, a Judicial Registrar can make orders to determine these issues.

Alternatively, the Court can make orders providing for the parties to participate in a Court-based dispute resolution process, on the basis the Court is satisfied that this is appropriate, having regard to the means and resources available to the parties.

In a property matter, parties may be ordered to participate in a Conciliation Conference with a judicial registrar. A significant benefit to participating in this dispute resolution process is that if you reach a final agreement on the day, orders can be made to finalise your matter, and you can exit the Court system.

Parties are expected to engage in good-faith negotiations and make a genuine effort to resolve issues in dispute. At the conclusion of the dispute resolution process, a dispute resolution certificate is issued by the judicial registrar. If the Court finds that a party has not participated in good faith and/or has not made a genuine effort to resolve the issues in dispute, there can be cost consequences as a result of a party’s actions.

Prior to participating in a dispute resolution event, parties are expected to exchange relevant financial disclosures and, for property matters, obtain updated valuations if necessary. In a parenting matter, it can often be useful to participate in dispute resolution following the release of an expert report, such as a Child Impact Report or a Family Report.

If you are at the stage of your matter where you are considering participating in a dispute resolution process, it is worthwhile to engage a family lawyer to advise and guide you. A family lawyer will be able to identify any steps that need to be taken before participating in a dispute resolution process, and provide you with guidance as to possible settlement outcomes. They can also make sure you have the best possible chance of success in a dispute resolution process.

Our specialist family lawyers here at Robinson + McGuinness can assist you at any stage of your matter, including at the dispute resolution process.  To arrange an appointment with one of our family lawyers, please complete the enquiry form below or call us on (02) 6225 7040 or by email on info@rmfamilylaw.com.au, 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.

ACT Reforms: Family Violence Lease Terminations and how they may impact you

On 10 December 2024, a number of reforms to the Housing and Consumer Affairs Legislation Amendment Act 2024 came into effect in the ACT. The reforms are aimed at increasing safety measures for renting families experiencing family violence. If you have experienced family violence, you can now break your fixed term lease immediately and without penalty.

To end your lease immediately and without penalty, you must complete a ‘family violence termination notice’ and provide notice to your landlord or managing real estate agent in writing, by email, post or in person. The family violence termination notice is available on the ACT Government website and via this link.

You may end your tenancy agreement on the vacating date in your notice. Rent is payable up until your vacating date, but you will not be subject to any break lease fees.

To establish a ‘family violence termination’ as a tenant, you will need supporting documentation; such as a family violence order, a family law order (being an injunction under section 68B or section 114 of the Family Law Act 1975 (Cth)) or a declaration by a competent person (such as a mandated reporter if dependent children are involved, DVCS employees, CYPS employees or eligible social workers).

Upon providing notice and your supporting documentation, your landlord will not be able to ask for any further documentation and is subject to certain confidentiality requirements. Your landlord is only able to share your family violence termination notice with a limited number of people, including their agent, an employee of their agent and the ACT Government. Your landlord is also able to share the notice with their lawyer, to obtain legal advice.

Your landlord cannot inform any co-tenant that you are leaving prior to your vacate date - any co-tenant will be informed within 7 days following your vacate date. The landlord must issue a co-tenant with a ‘notice of continuing tenancy’ which will alert the co-tenant to the fact you have provided the landlord with a family violence termination notice. The co-tenant may then choose to continue their tenancy agreement (paying the full rent for the property), or end their tenancy agreement (subject to any applicable notice periods). This form is available on the ACT Government website and via this link.

For those living in Housing ACT properties, you should not complete a family violence termination notice unless you have found alternate housing outside of your public housing tenancy. Housing ACT has a number of other supports available to those experiencing family violence - see more via this link.

If you are a victim of family violence or need assistance in navigating leaving a relationship safely, you can make an appointment with one of our experienced family lawyers at Robinson + McGuinness. To arrange an appointment by email contact us at info@rmfamilylaw.com.au or call us on 02 6225 7040 or get started now online.

For family violence support and assistance, contact 1800 RESPECT via the National Helpline on 1800 737 732.

Author: Anika Buckley, Associate