A QUESTION I POSE TO PEOPLE - ARE FAMILY LAWYERS QUALIFIED TO ADVISE YOU ON FINANCIAL AND PROPERTY SETTLEMENT MATTERS?
THE ANSWER IS, AS YOU WOULD EXPECT, A RESOUNDING NO
Under Family Law Rule 13.05, a party to a financial case, such as property settlement, maintenance, child support or financial enforcement must file a Financial Statement with the party’s Application or Response (see Rule 13.04 below).
Each party is required to file this Financial Statement and makes (swears / affirms) the following declaration as an Affidavit:
I swear*/affirm* that:
(a) I have read Rule 13.04 (which deals with full and frank disclosure) and I am aware that by law I have an obligation to make a full and frank disclosure of my financial circumstances to the Court and each other party. In particular, I have disclosed in this document or in an affidavit filed by me or on my behalf under Rule 13.05(2), all matters I am required to disclose under Rule 13.04.
(b) The information in the finacial statement and any attachments to it which are within my personal knowledge are true. Where I have given an estimate in this financial statement, it is based on my knowledge and is given in good faith. All other information given in this financial statement and any attachments is true to the best of my knowledge, information and belief.
(c) I have no income, property or financial resources other than as set out in this document or any affidavit filed by me under Rule 13.05(2).
Okay, so you do that, so what?
The (PART N - Orders for Maintenance, child support, financial enforcement) Number 60 - sworn by people are on the personal expenses, especially in the case of non-working women who are looking for a substantial maintenance claim. What we find is that the family lawyers, barristers and Judges, use these Financial Statements to drive a result that may allow inflated interim or spousal maintenance to be paid to one party, usually the wife, and then she can go about re-paying the legals fees owing to her family lawyer, usually over a six month period. .
It doesnt matter is you even show a deficiency in your Financial Statement as they will totally disregard it, as will the Judicary (which they make spousal maintenance orders without due regard to the financial reality or ones capacity to pay) often reducing capital or increasing debt, so the payments are made.
These Financial Statments of expenditure or "needs", which come into play under the section 75(2) matters, particularly relevenant if one party is currently and income earner and the other is say a stay at home mum (who probably can work, even taking a cleaning job), are usually a complete fiction.
Family Lawyers usually prepare these Statements and they advise on what numbers a party puts in here. These are Statements that can ruin you financially. Yet, ask your Family Lawyer whether he gives financial advice? He backs right away from this - all care, no responsibility. I say these people are gambling with the life savings or asset pools of ordinary mums and dads.
One may even consider making a complaint with Australian Securities and Investment Commission see: http://www.fido.gov.au/asic/pdflib.nsf/ ... July08.pdf
You can make a complaint to the Legal Services Commissioner or Board in relevant states, usually toothless tigers of the State Law Institutes, but they rarely punish their own members.
All in all, be wary. Perhaps consider getting an independent accountant or CPA to assist in preparing the Financial Statement and then have he or she swear an affidavit. One would expect the Court and the Family Lawyers to take notice and they would find it very hard to do otherwise. When the Family Lawyers prepare these Financial Statements, they are, as above, nothing more than fiction.
The Financial Statement is just a tool for the Family Lawyers to extract CASH and destroy you financially.