Financial Disclosure Obligations in Family Law Cases (Cyprus)

In family law cases in Cyprus — particularly where property disputes, claims for participation in the increase of property, and financial claims are involved — full and honest disclosure of all financial information constitutes a substantive legal obligation. It is not merely procedural, but central to the proper valuation of financial issues and the formulation of judicial decisions.
What follows is a concise yet comprehensive overview of the obligations, legal basis, and practical implications relating to financial disclosure in such cases.

What Financial Disclosure Entails
The term financial disclosure refers to the obligation of each party in family proceedings to present to the Court and to the opposing party a complete and accurate picture of their financial situation.
This includes:
• assets (immovable property, movable property, investments, shareholdings),
• bank accounts, cash holdings, and investment products,
• income from employment, business activities, or other sources,
• liabilities, debts, and loans,
• transfers or disposals of assets prior to or during the proceedings.
Such information is essential for assessing:
• each party’s contribution to the increase in property,
• the calculation of claims or obligations (e.g. participation in increase of property under Law 232/1991),
• and any other financial claims arising from the dissolution or separation of the marriage.

Legal Basis in Cyprus
The principal legal provision regulating financial disclosure in property disputes is Section 14A of the Regulation of the Property Relations of the Spouses Law 232/1991.
Under this provision:
• The Court may issue an order requiring the respondent, within a specified timeframe, to submit a sworn, full, and clear statement of assets concerning any property in which he or she had any direct or indirect interest as at the date of separation or at another relevant date determined by the Court.
• If property held at the specified date has been lost or transferred by the time of the hearing, the party is obliged to provide full, specific, and convincing proof of such acts by way of supplementary sworn statements.
• The Court also has the authority, where deemed necessary, to issue specific directions to banking or financial institutions in order to obtain evidence as to how property was moved or transferred during the critical period.
These provisions operate as a central legal mechanism to ensure full financial transparency in divorce, separation, and related family disputes.

Practical Operation of Financial Disclosure
1. Sworn Statements of Assets
The Court may order the submission of a sworn declaration of assets.
This declaration must describe fully and without omission:
• immovable and movable property,
• cash and investments,
• current and contingent future liabilities,
• any direct or indirect interest the party had in the relevant property.
The sworn nature of the declaration ensures that the information provided is legally binding, imposing a duty of full and responsible disclosure.

What Happens If Information Is Concealed
The legislation provides strict consequences for false, inaccurate, or incomplete financial disclosure:
• A person who provides such information commits a criminal offence, punishable by imprisonment or a fine.
• If a party refuses, omits, or delays compliance with a disclosure order, the Court may find them in contempt of court or suspend further proceedings until disclosure is completed.
Non-compliance is therefore not treated as a procedural irregularity, but as a serious violation with substantive consequences.

Why Financial Disclosure Is Critical
Financial disclosure does not serve merely technical or procedural purposes. It is fundamental to the Court’s assessment of the financial relationship between spouses because it:
• establishes a clear picture of assets and liabilities,
• enables fair evaluation of financial participation claims,
• allows proper application of the statutory provisions governing participation in property,
• ensures that any judicial decision is based on complete and reliable evidence.
In cases where one party has high income, business interests, or complex investments, the absence of full financial disclosure renders judicial determinations ineffective or incomplete.
Family law financial disputes require careful legal handling. Timely legal advice can significantly influence the outcome.
Where assets, businesses, income streams, or substantial financial claims are at the forefront, comprehensive financial disclosure and strategic legal planning from the outset are decisive in shaping a fair and sustainable outcome before the Cypriot courts.