In order to rule out any potential challenge to your agreement in the future, and minimise any inherent weakness in your agreement, you must make full and complete disclosure of all relevant matters, including the nature and extent of the asset pool and relevant financial information.
The Family Law Act is very strict in requiring both parties to be upfront and transparent, and disclose any information at all which may be relevant to the agreement. Section 90K states a financial agreement can be set aside for reasons of non-disclosure of relevant matters.
In addition, the parties to a financial agreement are agreeing to give up their rights to make a claim on the assets of the other, effectively ousting the jurisdiction of the court. For this to be effective, it makes sense that you need to be aware of the assets which you are agreeing to give up your lawful rights to make a claim on.
The law does not allow the parties lightly to give up their lawful rights to access the court, which they otherwise would have. The legislation goes to length to ensure that before signing the agreement, each party is aware of all material facts, understands the agreement and the effect of the agreement on their rights, and genuinely consents to the terms as a substitute for court action.
Disclosing the true value and extent of assets helps ensure each party has given their fully informed, genuine consent to the agreement.
You cannot contract out of this obligation to make full material disclosure, by including a clause in your agreement stating that neither party requires the other to make financial disclosure. Ultimately, if full disclosure of all material facts is not made, a party may challenge the validity of the agreement at a later date, on this basis.
A court has the power to set aside your agreement if it is satisfied that disclosure has not been made of all relevant matters – so it makes sense to rule out this possibility, by making full and frank disclosure of all assets, liabilities and other material matters and rule out any inherent weakness in your agreement.
As discussed in the question above, a party cannot give their fully informed consent without knowing all of the material facts. In addition, the solicitors are unable to give their clients the proper legal advice required by law without an accurate breakdown of the property pool.
For more information on the issue of disclosure, refer to the question above.