The practice of exchanging financial disclosure in a family law matter is where two spouses provide each other with information about their income, assets and liabilities.
If the spouses are separating, the disclosure is necessary to determine issues related to support and equalization of net family property. Generally, information about the value of assets and debts on the date of marriage and date of separation are exchanged. Income information will typically be provided for the three years prior to the separation.
In the context of a Cohabitation Agreement or Marriage Contract, where one spouse is usually giving up certain rights or entitlements to support or equalization of property, disclosure is required to ensure that the spouse understands what it is they are giving up.
Financial disclosure is required under family law legislation. Failure to make proper financial disclosure may result in a domestic contract being set aside.