Clients often wonder about the implications of re-partnering on their property settlement with their former spouse or partner. One common question for people with new partners regards whether they must disclose their new partner’s financial situation, and if so, to what extent.
Re-partnering can significantly impact property settlements in family law. Understanding your legal obligations regarding the disclosure of your new partner’s assets is crucial to ensure transparency and fairness in the process. At Loukas Law, we aim to provide clarity on these requirements to help you navigate this complex aspect of family law.
Future financial needs and disclosure requirements
In the case of Pates & Pates [2018] FamCAFC 171, the Full Court of the Family Court of Australia clarified that while there’s no blanket obligation to divulge all details about a domestic partner’s finances, certain information must be provided.
In family law property proceedings, parties are mandated to submit a Financial Statement, which includes details about household members such as their names, ages, relationships to the party, and average weekly income. As clarified in the case of Pates & Pates, visibility of a new partner’s asset health may be necessary for the Court to make a property adjustment order that can sufficiently account for the future needs of each party. Here are some specific examples of examples of how and when this would apply:
Cohabitation disclosure
If you are cohabiting with a new partner, this information must be disclosed. The Financial Statement requires disclosure of all expenses each party pays for the other. This ensures that the court has a complete picture of the financial situation.
Section 75(2) considerations
Under section 75(2) of the Family Law Act 1975 (or section 90SF(3)(m) for de facto relationships), if either party is living with another person, the Court must consider “the financial circumstances relating to the cohabitation.” This includes evaluating how the new partner’s financial situation affects the party’s future needs.
Contributions to living expenses
If your new partner contributes to living expenses, such as rent or mortgage payments, the Court may view your future needs as reduced since these expenses are shared. It’s essential to disclose this information to ensure a fair assessment of your financial situation.
Providing support evidence
Conversely, if you want your new partner’s financial circumstances considered because they continue to support you, you must provide supporting evidence to the Court. This can help demonstrate how your new partner’s finances impact your needs and contributions.
Court’s discretion
Judges have considerable discretion regarding the circumstances of a new partner, and each case is evaluated individually. It’s essential to understand the disclosure requirements and be prepared to provide relevant evidence to the Court if you want your new partner’s financial situation considered in proceedings.
Practical advice
Navigating the disclosure requirements can be complex, but following these practical steps can help ensure compliance and transparency:
- Gather detailed financial information: Collect all relevant details about your new partner’s assets, income, and contributions to household expenses. This includes bank statements, property ownership documents, and income records.
- Complete the Financial Statement accurately: Make sure to include all required disclosures in your Financial Statement. This document should reflect your current financial situation, including any contributions from your new partner.
- Consult with a family lawyer: Engaging a family lawyer is crucial to understanding your legal obligations and ensuring all requirements are met. A lawyer can provide guidance on what needs to be disclosed and how to present this information to the Court.
- Document shared expenses: Keep records of any shared expenses between you and your new partner. This includes rent, mortgage payments, utility bills, and other household costs. These documents will help demonstrate the financial dynamics of your cohabitation.
- Prepare supporting evidence: If you need your new partner’s financial situation to be considered by the Court, gather and prepare all necessary evidence. This might include affidavits, financial statements, and any other relevant documents that can support your case.
- Communicate transparently: Maintain open and honest communication with your former partner and their legal representation. Transparency helps build trust and ensures that the property settlement process proceeds smoothly.
Loukas Law is here to help
At Loukas Law, we pride ourselves on working respectfully and cooperatively with all parties involved to ensure the process is smooth and trust between the parties is maintained. As Perth’s trusted family and divorce lawyers, we are dedicated to safeguarding your family’s rights and well-being. We guide you through the legal complexities, ensuring you meet all disclosure requirements and navigate your property settlement transparently.
Understanding the disclosure requirements for your new partner’s assets in family law matters is crucial for a fair property settlement. With empathy, clear communication, and professional guidance, you can navigate this aspect of family law effectively. At Loukas Law, we are committed to supporting you through every step, ensuring that your financial agreements are handled with care and professionalism.
Contact us today!
For expert advice and support on disclosing your new partner’s assets in a family law matter, contact Loukas Law. Our dedicated family lawyers in Perth are here to help you navigate this important aspect of property settlements and ensure a fair and just outcome. Schedule a consultation today to secure your financial future