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New partner, new finances. What does the court need to know?

12 September 2022

How much does the Court need to know about your new partner following a divorce and will their financial circumstances impact the property settlement with your ex? The short answer is generally, no. But you need to be clear as to what may be required.

You won’t need to provide full disclosure of your new partner’s financial circumstances, however there is information the court will need to know.

Anyone involved in family law property proceedings needs to file and serve what is called a Financial Statement, which includes information about other members of the household such as name, age, relationship, and average weekly income.

If you’re living with a new partner, that information will need to be included in the Financial Statement. You also have to disclose all the expenses you’re paying for your new partner, and everything your new partner is paying for you.

If your new partner is contributing towards living expenses, for example paying half the rent, then the Court may consider that your future financial needs will be less than your former Spouse’s needs. You receive the benefit of having your expenses being shared or paid by someone else.

And if you are helping to support a new partner or children, you will need to show the court evidence of that financial support.

Case example

In a recent case, the Court found there was no general obligation for a party to provide full and frank disclosure of their domestic partner’s financial circumstances.

In this case, there was a long delay between the couple’s separation and the final property settlement, during which time the husband had re-married.

The husband married his new wife about two years before the trial started. They had two children together, who were aged four years and two years at the time of trial.

The husband gave no evidence about his new wife’s financial circumstances, and he did not call her as a witness.

On appeal, the ex-wife said the trial judge mistakenly overlooked a contribution made by her, by failing to take into account that she allowed the husband and his new partner to live in one of their jointly owned properties, during which time the husband reduced the amount of the mortgage repayments.

The husband said his current wife did not work and he supported both her and their two young children.

The ex-wife argued that the husband’s “lack of transparency and disclosure” about his current wife’s “financial position” should cause the court “considerable disquiet”.

However, the court found that “save for the provision of information about the income of other members of the parties’ households and any expenses paid on their behalf by third parties, disclosed in their prescribed Financial Statements, there is no general obligation upon parties to disclose the financial circumstances of their domestic partners”.

When it comes to finalising a property settlement and involving your new partner’s finances, there’s a wide range of discretion available to Family Court Judges, so it’s important you get the right advice.

This can be a complex area of family law and the experts at Michael Lynch Family Lawyers are here to help you. Contact our office on: (07) 3221 4300 or email: [email protected] for an appointment.

Image of a happy couple, accompanying family law article "New partner, new finances. What does the court need to know?"
2022-09-13T09:12:29+10:00

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