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Is Non-Disclosure of Financial Information in Divorce Cases a Crime?

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Is Non-Disclosure of Financial Information in Divorce Cases a Crime?

Author: Carol Pages, Pages Family Law.

When separating, one of the most important legal obligations in family law property and financial matters is the requirement for full and frank financial disclosure. But what happens if someone fails to disclose assets or income? Can it be considered a criminal offence?

What Is Financial Disclosure in Family Law?

In Australia, when a couple separates, both parties are legally required to disclose all relevant financial information—whether or not the matter proceeds to court. This duty applies to:

  • Property settlements
  • Spousal maintenance claims
  • Any financial negotiations or court proceedings after separation

The obligation starts at the beginning of the matter and continues until the financial dispute is fully resolved.

What Financial Documents Must Be Disclosed?

The list of documents typically includes:

  • Payslips, tax returns, and employment contracts
  • Bank statements and superannuation statements
  • Business Activity Statements (BAS)
  • Company financials, trust deeds, and shareholdings
  • Loan documents and property valuation

These documents help determine the asset pool and assist in achieving a just and equitable property division.

What Happens If You Don’t Disclose Everything?

Failing to provide full and accurate disclosure can lead to serious legal consequences, including:

  • Delays and increased legal costs due to missing documentation
  • Court proceedings initiated by the other party to compel disclosure
  • Unfavourable property division outcomes for the non-disclosing party
  • Costs orders made against the non-compliant party
  • Contempt of court findings, which may lead to fines or imprisonment

Recent Legal Updates: Disclosure Now in the Family Law Act

As of 10 June 2025, the Family Law Act 1975 (Cth) has been updated to reinforce the obligation of financial disclosure. While the Family Law Rules 2021 already outlined disclosure obligations, these changes give statutory weight to the requirement—making it clear that disclosure applies from pre-action procedures through to final settlement.

Can You Go to Jail for Non-Disclosure?

Yes. In a recent 2025 case—DPP v Sackl [2025] VCC 402—a man involved in property proceedings deliberately failed to disclose financial details and submitted false documents and evidence to the Court.

The result?

  • A sentence of 18 months’ imprisonment
  • A requirement to serve 6 months in custody
  • The remaining 12 months suspended on a three-year good behaviour bond
  • $2,000 recognisance order

The Court was unable to determine the true asset pool due to the deception. The matter was referred to the Australian Federal Police, leading to charges under the Crimes Act 1914 (Cth) for misleading a federal court.

Judge Todd noted that giving false evidence “strikes at the heart of the administration of justice” and cannot be tolerated.

Key Takeaways

  • Non-disclosure is not just a procedural issue—it can have criminal consequences.
  • The duty of disclosure is ongoing and must be taken seriously in every financial family law matter.
  • Seek legal advice early to understand your obligations and avoid serious consequences.

Need Help with a Property Settlement?

If you’re navigating a separation and need guidance on your disclosure obligations, an experienced family lawyer can help. We provide clear advice and practical support to help you comply with legal requirements and protect your future.

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The content of this article is provided for information purposes only and does not constitute legal advice. We recommend that you seek legal advice relevant to your own circumstances and we would be happy to assist you.

Carol Pages is the Principal of Pages Family Law and an Accredited Specialist in Family Law and a Nationally Accredited Mediator. If you would like advice about your own separation, please contact Pages Family Law at info@pagesfamilylaw.com.au or on 03 9121 8077 or book a 15 minute free discovery call via our website.

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