Optimising due diligence: A strategic imperative for family lawyers

album-art
00:00
1X

Due diligence can take on many meanings in family law practice. But, there is no ignoring that due diligence work has evolved into a strategic lever to help firms mitigate risk, deliver superior client outcomes and strengthen their standing in an increasingly competitive market. 

 

The most effective practitioners recognise the value of due diligence lies in the clarity it creates and that it is relevant at every stage of a family law matter. When executed with intent, due diligence becomes a source of insight about your client, the other party and their property pool, allowing for more confident decision-making throughout the matter. 

 

Identity verification and targeted searches are foundational tools. But when these elements are built upon through financial disclosure and valuation, and integrated thoughtfully across the lifecycle of a matter, they move beyond compliance. They become instruments of risk mitigation, strategic leverage and sustainable practice growth. 

What thorough due diligence looks like in practice

For some family lawyers, taking a photocopy of your client’s ID, or doing one ASIC feels like you have ticked the box for due diligence. However, there are numerous searches and tools available to allow firms to differentiate themselves and excel.

“Effective due diligence is never one-dimensional“, says Bree Staines, InfoTrack Family Lawyer. “It requires a disciplined framework and brings together verification, investigation and context particularly in matters involving complex financial structures or heightened risk”.

The scope of due diligence will always depend on the matter and the client’s circumstances, but at a minimum, a rigorous approach should include:

  • Verification of identity
    Robust identity verification processes are now essential. Family lawyers are practicing in a world where they may not meet their client personally, and there are ongoing cyber security threats. It has fast become best practice to use biometric verification matching identity documents, a live selfie and validation against official databases.

  • Title and property searches 
    Obtaining a title search for all real property held by all interested parties (which can include a corporate entity) in the matter helps confirm ownership and clarify interests that may otherwise be assumed. It is also important to use searches to understand the real property, when it was purchased, details of the Transfer and Mortgage, real property that was previously owned by a relevant party. It is best practice to use additional searches to verify this information and obtain supporting documents.

  • ASIC searches 
    These searches establish where there may be a company interest relevant to the matter, including shareholdings, directorships, and related trusts. Identification of a corporate interest is the first step, with further ASIC searches or a PPSR or bankruptcy searches then required to understand the history and control and value of funds in a matter. This materially affects financial disclosure requests and settlement strategy in the matter.

  • Financial Disclosure 
    A family lawyer is obliged to ensure their client has satisfied themselves of disclosure of all assets and liabilities. A client should be engaged in this process with respect to their own disclosure and understanding the other party’s financial disclosure to ensure all interest in all forms of property are accounted for correctly.

  • Valuations 
    While valuations usually end up being necessary when parties cannot agree on a value, consider the need for a valuation to also ensure proper understanding of the value of the property pool, and in the case of businesses, the structure of the asset.

Turning diligence into advantage

Leading family law firms are embedding due diligence into their operational strategy, rather than treating it as a discrete or reactive process. This shift requires moving away from manual, fragmented workflows toward a centralised, technology-enabled approach designed for enhanced visibility. 

Technology now allows practitioners to access verified data in real time, maintain audit-ready records and collaborate seamlessly across teams. Multi-user workflows ensure consistency across lawyers, paralegals and support staff, reducing dependency on individual knowledge and mitigating institutional risk. Complex matters can be managed with confidence, even as teams scale or workloads fluctuate. 

 

These measures will take on even greater significance as Tranche 2 AML/CTF obligations come into effect on 1 July 2026, increasing expectations around identity verification, transparency and record-keeping across the profession. 

 

When due diligence is executed as a cohesive system it becomes a powerful differentiator. Firms resolve matters more efficiently, reduce exposure to compliance risk and inspire greater client confidence as they have a greater understanding of the parties to the matter and the structure and value of the assets and liabilities. Operational excellence translates directly into competitive advantage. 

 

To learn how you can leverage targeted InfoTrack solutions for optimal due diligence, book a complimentary demonstration here.