Let's face it—life isn't as local as it used to be. These days, it's pretty normal for Aussie couples to have assets spread across the globe.
It might be a cosy flat in Italy, a retirement fund from a stint working in the UK, or a handful of shares in a tech giant over in the US.
Sounds exciting—until you're heading into a divorce.
That's when things get tricky.
What started as a simple separation can suddenly feel like you're untangling a global puzzle.
Cross-border assets often come with extra layers of red tape, and if you don't handle them the right way, they can turn an already stressful process into a legal minefield.
One of the biggest headaches?
Figuring out how overseas assets are dealt with under Australian family law. It's not always clear-cut, especially when multiple legal systems are involved.
That's where this guide comes in.
We break down how international assets are treated during an Australian divorce, the strict rules around disclosure, and what happens if someone tries to hide money offshore.
Most importantly, we show how Unified Lawyers—Sydney's trusted experts in complex family law—can help protect your financial future and guide you through every twist and turn of an international divorce.
From properties in Europe to offshore trusts and Asian shareholdings, our legal expertise spans the globe to help safeguard your interests throughout the process.
Understanding Overseas Property and Financial Interests
Overseas assets refer to any property or financial resource held or registered outside of Australia. These assets can take many forms and may be individually or jointly owned.
Common examples include :
- Residential or commercial real estate overseas (e.g. a rental property in New Zealand or an inherited apartment in Italy)
- Bank accounts in foreign jurisdictions
- Shares, ETFs or other investments on international exchanges
- Interests in foreign-registered companies or partnerships
- Offshore superannuation or pension schemes
- Discretionary or unit trusts registered abroad
- Cryptocurrency held in offshore digital wallets or exchanges
- Art, vehicles, or other valuables located or stored overseas
International financial interests may not always be obvious. Even assets held via intermediaries or in trust structures can still form part of the matrimonial asset pool.
Legal Framework for Dividing International Assets
The Family Law Act 1975 (Cth) governs property settlements for married and de facto couples in Australia. Section 79 empowers the Family Court and the Federal Circuit and Family Court of Australia (FCFCOA) to make orders altering the interests of parties in their combined asset pool.
This includes all property, whether held domestically or internationally.
Jurisdiction and Enforcement Challenges
Although Australian courts can make orders affecting foreign property, enforcement outside Australia may not always be straightforward.
The ability to enforce an order in another country often hinges on whether that country recognises Australian family law judgments.
Considerations include :
- Is there a bilateral treaty or reciprocal enforcement agreement?
- Will the overseas court acknowledge the Australian court's jurisdiction?
- Are local legal or practical mechanisms available to enforce orders?
Countries such as the UK, New Zealand, and the United States generally have cooperative frameworks.
In contrast, jurisdictions with strict banking secrecy or asset protection laws may present significant hurdles.
Disclosure Requirements for Foreign Assets in Divorce
Under the Family Law Rules 2021 and procedural guidelines issued by the FCFCOA, parties must provide full and frank disclosure of all their financial circumstances.
This duty is ongoing and continues until the case is finalised.
This includes disclosing :
- Any ownership or control of overseas property
- Balances and ownership details of offshore accounts
- Financial interests in international companies, partnerships, or trusts
- Foreign tax returns, financial statements, or other evidentiary documents
Failure to meet these obligations can result in serious consequences such as :
- Court orders penalising the non-disclosing party
- Inference that undisclosed assets exist
- Setting aside previously agreed property settlements
- Stay or dismiss all or part of your case
- Costs orders and, in extreme cases, contempt proceedings
Australian courts may issue subpoenas for foreign banks or business records, use letters of request for international judicial cooperation, or rely on forensic accountants to trace complex financial trails.
How Courts Handle Offshore Accounts and Investments
When courts in Australia look at who owns what in a divorce, they don't just go by what's on paper.
They'll dig into who really owns or controls offshore assets and what those assets are actually worth.
Just because money's sitting in a foreign account or a property's in someone else's name doesn't mean it gets left out—it's still very much on the radar.
Common examples include :
- Swiss or Cayman Islands bank accounts
- Cryptocurrency wallets with high-volume transactions held offshore
- Investments in overseas mutual funds or share portfolios
- Overseas companies used as asset-holding entities
If a party is found to have transferred, hidden, or misrepresented overseas holdings, the court may :
- Add the hidden value to the asset pool
- Infer sole or joint ownership despite nominal ownership
- Increase the other party's share to compensate for dishonesty
What Counts as a Foreign Asset in a Divorce?
The range of international assets can be broad. Examples of what may be considered foreign property in divorce proceedings include :
- Real estate registered outside Australia
- International business equity or directorships
- Overseas pension entitlements
- Superannuation schemes with foreign trustees
- Digital assets (cryptocurrency, NFTs) stored on non-Australian platforms
- Collectibles, luxury vehicles, or other high-value assets stored abroad
Assets indirectly held through entities or where ownership is contested can still be included if control or benefit can be proven.
Case Study :
In the Singapore case WRX v WRY [2024] SGHC (A) 22, the wife failed to disclose significant financial information during the divorce.
The court reinstated over $1.25 million into the matrimonial asset pool and granted the husband an additional 5% share of the assets.
This ruling underscores the severe repercussions of nondisclosure and the judiciary's commitment to transparency in international divorce cases.
How to Protect Your Overseas Assets During Divorce
Proper planning and proactive engagement can safeguard your rights and streamline negotiations.
Key steps include :
- Binding Financial Agreements (BFAs) : These agreements can define how overseas assets will be treated in the event of separation. Ensure they meet all formal requirements and are legally enforceable.
- Use of Transparent Structures : If using overseas companies or trusts, ensure they are not designed to obscure ownership. Full documentation and records should be maintained.
- Prompt Disclosure : Voluntary disclosure of international assets builds trust and avoids legal surprises.
- Legal Advice from Experts : Choose a family law firm with experience in cross-border matters and access to a global network of legal and financial professionals.
Frequently Asked Questions
1. Can overseas property be included in my divorce?
Yes. All overseas property owned, controlled or benefited from by either spouse is generally considered part of the asset pool.
This includes jointly held overseas real estate, inherited property, and even investment properties in other jurisdictions if they were acquired during the relationship.
2. What if my spouse is hiding assets abroad?
The court can issue subpoenas, order document discovery, or rely on expert evidence to trace hidden wealth.
In cases involving suspected concealment, courts may also employ forensic accountants and seek cooperation through international treaties like the Hague Convention.
Consequences can include reallocation of property entitlements, cost penalties, and, in some cases, criminal referrals.
3. Do I need a lawyer in that country too?
In many cases, yes—particularly when enforcement of court orders or compliance with local legal requirements is necessary.
A local family lawyer can also advise on whether an Australian property order will be recognised and can help secure injunctions or asset freezes in that jurisdiction.
4. Will Australian courts divide my overseas business?
Possibly. The court will evaluate not just legal title but also beneficial ownership, management control, and the contribution that business made to the marriage.
Even if the business is legally owned by a third party, it could be considered if it effectively benefits one or both spouses.
5. How do I disclose foreign investments?
You must provide accurate and complete financial disclosure, including tax documents, foreign bank statements, portfolio summaries, and legal documents showing ownership or entitlement.
Unified Lawyers often works with clients to compile a disclosure schedule that meets FCFCOA requirements while navigating local laws governing privacy and information access.
How Unified Lawyers can help
A divorce involving overseas assets presents unique challenges such as jurisdictional issues, foreign financial regulations, and the need for careful tracing and valuation.
Whether you require assistance with disclosing foreign investments, protecting international business interests, or dividing offshore assets fairly, our family law specialists are here to help.
At Unified Lawyers, we know that strategy, confidentiality, and precision are vital when managing international divorce matters.
Our Sydney-based collaborates with forensic accountants, international legal experts, and asset valuation professionals to ensure every overseas asset is identified and dealt with appropriately.
If you are navigating a divorce that includes overseas property or financial holdings, you need a law firm with the experience and network to support your best interests.
Contact Unified Lawyers today for a confidential consultation and take the first step towards clarity and resolution.
Click here: Get a free consultation today!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
