Kanelos and Kanelos

In *Kanelos and Kanelos*, the Supreme Court of Victoria was asked to determine whether a husband, Mr. Kanelos, had breached his duty to his wife, Mrs. Kanelos, by failing to disclose certain financial information during family law proceedings. The dispute arose from the division of matrimonial assets, where Mrs. Kanelos alleged that Mr. Kanelos had deliberately concealed assets, thereby preventing a just and equitable distribution.

The central legal issue before Stevenson J was whether Mr. Kanelos had contravened his disclosure obligations under the *Family Law Act 1975* (Cth). Specifically, the court had to consider the nature and extent of the duty of disclosure owed by parties in family law proceedings, and whether the alleged concealment of assets amounted to a breach of that duty, warranting a review of the original property settlement orders.

Stevenson J found that Mr. Kanelos had indeed failed to make full and frank disclosure of his financial position. The court applied the principles established in cases concerning the duty of disclosure, emphasizing that parties are required to provide all relevant information regarding their assets, liabilities, and financial resources. The judge concluded that the non-disclosure was not a mere oversight but a deliberate attempt to mislead the court and Mrs. Kanelos, thereby undermining the integrity of the original settlement. Consequently, Stevenson J set aside the original property settlement orders and ordered that the matter be relisted for a redetermination of the property settlement.