Family law property settlement disputes can be long and arduous at the best of times, particularly when it comes to providing financial documents and complying with the duty of disclosure.
The duty of disclosure requires that all parties to a family law dispute must provide to each other all information relevant to an issue in dispute. For property settlement matters, there are even more specific rules about providing full and frank financial disclosure as to all sources of income, property and financial resources. It is throughout this process that an experienced family law solicitor might disclose that your former spouse has been, or still is, wasting money through gambling.
The issue of gambling in family law matters will usually be dealt with by way of a wastage argument. Wastage occurs when one party has intentionally, recklessly or negligently reduced the matrimonial asset pool.
The most common way that gambling losses are considered in the family law property settlement process are:
- As an addback to the matrimonial asset pool. The amount lost through gambling can be notionally added back to the matrimonial asset pool as if it were an asset which the gambling party would have otherwise have had, such as by way of savings in the bank.
- As a negative contribution by the gambling party taken into account when determining the overall percentage outcome which the gambling party would otherwise have been entitled to.
Importantly, not all gambling will be classified as wastage by a Judge in the Federal Circuit and Family Court of Australia. An assessment needs to be made as to whether the gambling is treated as a legitimate form of entertainment or whether it passes the threshold of becoming a reckless or negligent wastage of funds.
If you are concerned about issues of gambling and wastage as you negotiate your family law property settlement matter, make an appointment with one of our experienced family law solicitors here at Tiyce & Lawyers. We will help guide you through the process in a clear and easy to understand manner.
Tiyce & Lawyers – we are here when you need us.
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