Divorce 101

Providing Financial Information (Disclosure) in Family Law Cases

Written by Russell Alexander ria@russellalexander.com / (905) 655-6335

In family law cases, providing complete and accurate financial information is a critical component for resolving issues related to child support, spousal support, and property division. The process of financial disclosure ensures transparency between the parties involved and aids in fair decision-making. Here, we will outline the requirements for financial disclosure, the types of documents needed, and tips on how to prepare them effectively.

Requirements for Financial Disclosure

Financial disclosure in family law cases is mandated by Rule 13 of the Family Law Rules and Section 21 of the Child Support Guidelines. These regulations stipulate that both parties must exchange comprehensive financial information. This exchange is crucial because:

  • It provides a full picture of each party’s financial situation, which is essential for resolving support and property issues.
  • Delays or failures in providing financial disclosure can increase the duration and cost of the case.
  • Non-compliance with disclosure requirements may lead to penalties, including being ordered to pay the other party’s legal costs or having your court papers struck out by the judge.

Types of Documents Needed for Financial Disclosure

The specific documents required for financial disclosure depend on the claims being made in the case. Here is a breakdown of the essential documents to be provided:

For Support Issues (Child or Spousal Support)

  1. Income Tax Returns: Copies of income tax returns for the past three years.
  2. Notices of Assessment and Reassessment: Notices for the past three years.
  3. Statement of Earnings: Your most recent statement of earnings or other proof of income for the current year.
  4. Self-Employment Income: For those who are self-employed, proof of income for the past three years, including business financial statements and a breakdown of all salaries, wages, and other benefits paid.
  5. Income from Partnerships, Corporations, or Trusts: Proof of income from these sources.
  6. Other Income Sources: Proof of income from employment insurance, social insurance, pensions, workers’ compensation, disability payments, or any other sources.

These documents are typically attached to your Financial Statement (Form 13 or Form 13.1) and served to the other party when initiating or responding to an application.

For Property Issues

When making a claim for property division, especially in cases of equalization the following document should be included:

  1. Bank and Investment Statements: Statements of bank accounts, savings plans, RRSPs, and pensions as of the date of separation.
  2. Real Estate Assessments: Property assessments for any real estate owned.
  3. Life Insurance: Documents showing the cash value of life insurance policies.
  4. Business Interests: Financial statements and income tax returns for sole proprietorships, partnerships, and corporations. For privately held corporations, include detailed financial statements.
  5. Trust Interests: Documents showing interests in any trusts.
  6. Debt Statements: Statements for all debts, including mortgages and credit cards.

Additionally, documentation of property owned at the date of marriage and any exclusions, such as inheritances, must be provided as per Section 4 of the Family Law Act.

Tips for Preparing Financial Disclosure

  1. Organize Your Documents as soon as possible: Ensure that all financial documents are well-organized and up-to-date. This includes sorting documents by category and date. The earlier the better
  2. Be Accurate and Complete: Provide complete and accurate information. Omissions or inaccuracies can lead to legal repercussions and delays.
  3. Seek Professional Help: If needed, seek assistance from a financial advisor or lawyer to help gather and interpret your financial documents.
  4. Stay Updated: Financial situations can change, so keep your documents updated and ready to provide the latest information.
  5. Understand the Requirements: Familiarize yourself with the specific disclosure requirements related to your case. This can prevent unnecessary delays and complications.

Providing thorough and accurate financial disclosure is a fundamental part of resolving family law issues. It promotes transparency, fairness, and efficiency in legal proceedings, ensuring that both parties can reach a fair agreement based on complete financial information.

For more detailed guidance on financial disclosure, refer to the Ministry of Ontario’s official resources and CLEO’s Steps to Justice.

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About the author

Russell Alexander

Russell Alexander is the Founder & Senior Partner of Russell Alexander Collaborative Family Lawyers.