Hiding Assets in Canberra Property Settlement: 2025 Duty Rules
February 11, 2026
The landscape of Australian family law underwent a seismic shift on June 10, 2025. For those navigating a property settlement in Canberra, the stakes for transparency have never been higher. What was once a set of procedural court rules has now been codified into the Family Law Act 1975, elevating the “duty of disclosure” to a strict statutory obligation.
If you are going through a separation, understanding financial disclosure in family law is no longer just “good advice”—it is a legal mandate with severe consequences for those who attempt to bypass it. This article explores why hiding assets in a divorce is now a high-risk gamble that can lead to lost settlements, heavy fines, and even imprisonment.
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What is the New Duty of Disclosure?
The 2025 legislative reforms have moved the duty of disclosure from the Court Rules into the primary legislation (Family Law Act). Specifically, Sections 71B (for marriages) and 90RI (for de facto relationships) now enshrine the requirement for “full and frank disclosure.”
Defining Full and Frank Disclosure
In a legal context, this means you must provide all information and documentation relevant to your financial position. This is not a “one-off” task; it is an ongoing duty that starts from the moment you begin negotiating and continues until final orders are made or a Financial Agreement is signed.
Why the Change Matters in 2026
By moving these rules into the Act, the Australian government has signaled that financial transparency is a cornerstone of justice. In Canberra property settlements, the Court now has explicit statutory power to penalise non-compliance more aggressively than in previous years.
The Risks of Hiding Assets in a Canberra Property Settlement
Many people believe they can “protect” their wealth by transferring funds to family members, “forgetting” about cryptocurrency wallets, or undervaluing business interests. In 2026, these tactics are easier to detect and harder to defend.
1. Statutory Penalties and Fines
Under the new laws, a breach of the duty of disclosure is a breach of the Act itself. The Court can impose significant fines on individuals who fail to disclose relevant information in a timely manner.
2. Adverse Inferences (The “Hidden Wealth” Assumption)
If the Court finds evidence that you are hiding assets, it can draw an adverse inference. This means the Judge may assume the hidden asset pool is significantly larger than what has been discovered and adjust the final percentage split in favor of the other party to compensate for the “missing” funds.
3. Costs Orders
You may be ordered to pay the other party’s legal fees. In complex Canberra cases involving forensic accountants, these costs can reach tens of thousands of dollars, often exceeding the value of the asset you were trying to hide.
4. Contempt of Court and Imprisonment
Because you must sign a formal Undertaking as to Disclosure, lying is considered a breach of a promise to the Court. Severe or repeated non-disclosure can lead to charges of contempt of court, which carries the risk of a prison sentence.
What Must Be Disclosed? (The 2026 Checklist)
To satisfy the financial disclosure requirements in family law, you must provide a comprehensive view of your “financial universe.” This includes:
| Category | Items to Disclose |
| Income | Pay slips, dividends, trust distributions, and rental income. |
| Assets | Real estate, vehicles, shares, and cryptocurrency. |
| Business Interests | 3 years of financial statements and BAS for companies or trusts. |
| Superannuation | Recent member statements (including SMSFs). |
| Disposed Assets | Any asset sold or gifted 12 months before or since separation. |
| Liabilities | Mortgages, credit card debts, and personal loans. |
How the Court Uncovers Hidden Assets
If you suspect your ex-partner is hiding assets in a divorce, the legal system provides several powerful tools to bring the truth to light.
- Subpoenas: Your lawyer can request documents directly from banks, employers, and the ATO.
- Forensic Accounting: Experts can trace “money trails,” identifying unexplained transfers or “lifestyle-income” gaps.
- Property Searches: Comprehensive audits of land titles and ASIC company registers can reveal undisclosed interests.
- Search Orders: In extreme cases, the Court can authorize a search of premises to seize evidence of hidden wealth.
Step-by-Step: Managing Your Disclosure Correctly
- Start Early: Gather your last three years of tax returns and bank statements immediately.
- Be Over-Inclusive: If you aren’t sure if a document is relevant, disclose it anyway. It is better to provide too much than to be accused of hiding information.
- Update Promptly: If you sell shares or get a pay rise, you must inform the other party within 21 days.
- Sign the Undertaking: You will be required to sign a document stating you have complied with your duty. Ensure this is 100% accurate.
Common Mistakes to Avoid
- The “Gift” Trap: Transferring $50,000 to a parent’s account “for safekeeping” is easily traced and will likely be “added back” to your side of the ledger.
- Undervaluing Property: Providing a “low-ball” appraisal for the family home in Griffith or Barton often leads to the Court ordering an independent valuation, which may be higher.
- Ignoring Digital Assets: The Court now specifically looks for Bitcoin, Ethereum, and other digital tokens. These are not “invisible” to forensic investigators.
Internal & External Linking Suggestions
- Internal Link: “Learn more about [calculating your asset pool] in our guide to Canberra divorce.”
- Internal Link: “How [spousal maintenance] interacts with the duty of disclosure.”
- External Reference: See the Federal Circuit and Family Court of Australia (FCFCOA) official page on “Duty of Disclosure.”
- External Reference: Consult the Family Law Act 1975 (via Federal Register of Legislation) for the full text of Sections 71B and 90RI.
Frequently Asked Questions (FAQ)
What happens if I accidentally forget to disclose an asset?
You should notify your lawyer and the other party as soon as you realize the error. Providing the information voluntarily before it is “discovered” reduces the risk of the Court imposing penalties for bad faith.
Does the duty of disclosure apply if we are settling out of court?
Yes. To make a Consent Order or a Binding Financial Agreement (BFA) legally binding, there must be “full and frank” disclosure. If it is later discovered that an asset was hidden, the entire agreement can be set aside (cancelled) by the Court.
How far back do I need to provide bank statements?
Typically, the Court and practitioners require at least 12 months of statements, but in many property settlements, you may be asked for up to 3 years to establish contribution patterns.
Can my ex-partner see my business’s private financial records?
If you have an interest in a business, its financial health is relevant to the asset pool. While some sensitive data might be protected, the core financials (Profit & Loss, Balance Sheets) must be disclosed.
Is cryptocurrency included in financial disclosure?
Absolutely. The Court treats cryptocurrency as property. Failure to disclose digital wallets is treated with the same severity as hiding a bank account.
Conclusion: Transparency is Your Best Strategy
The 2025 reforms have made it clear: the Court has no patience for financial games. Hiding assets in a Canberra property settlement is no longer a viable strategy—it is a fast track to legal and financial ruin.
By adhering to the duty of disclosure, you protect your credibility, minimize legal costs, and ensure your settlement is “final” and cannot be challenged in the future.