Wednesday’s Video Clip: How to fill out a financial statement
In this law video, Darla review the steps required to fill out a financial statement for the family court or negotiating the terms of your divorce settlement.
When entering into a Separation Agreement or bringing an Application before the Court, parties must provide full financial disclosure.
Complete financial disclosure is a prerequisite to the settlement of any family law case. The Family Law Act and its interpretation by our Courts, leaves no uncertainty in this respect. Any agreement can be set aside if a party has failed to truthfully and accurately disclose his or her financial position.
To this end, the rules of the Court require completion of the Financial Statement, either Form 13.1 (support and property claims) or Form 13 (support claims only). This form must show information that is complete, correct, and up to date. It is important to remember that the Financial Statement is a sworn document, just like an affidavit. When you sign this completed document, you are giving evidence in the same manner as if you were in Court. An incorrect, incomplete or misleading Financial Statement, in addition to affecting the validity of any agreement, can adversely affect your credibility in the eyes of the other side in reaching a settlement, and in the eyes of the Court in rendering a decision.
The Financial Statement forms the basis for the determination of each party’s present income position and income potential, present and proposed standards of living, and net family property.
All information contained in your Financial Statement must be substantiated by documentation providing proof of same, or at the very least you must be able to explain how the figures were determined. You should retain, gather and organize all receipts, utility bills, cancelled cheques, bank account statements, credit card statements, RRSP statements, investment statements, line of credit statements, property or business valuations, estimates, and all other substantiating documentation and provide copies upon request.
We hope you have found this video helpful. If you require further information about filling out a financial statement please give us a call or visit our website at www.russellalexander.com