After separation, a party may attempt to reduce the asset pool before the division of the matrimonial property. In many cases parties will sell, transfer, assign or gift assets to other members of family or friends with the aim to reduce their asset pool. However it must be asked, is this legal?

Rule 13.01 of the Family Law Rules 2004 require each party to disclose all relevant information pertaining to the matter of the division of assets in a timely manner. While Rule 13.04 states that a complete transaction history of the last twelve months prior to separation must also be submitted to the courts. In this summary, must be included any transfers of assets, so that a judge can make a fair ruling as to how a matrimonial estate may be divided.

If the disposal of assets is seen as being below market value, or gifted to another without nothing in return, a judge can split the remaining asset pool to justly contrast this.