Financial disclosure is one of the most important parts of resolving a family law matter in Ontario. Whether you are negotiating child support, spousal support, or property division, both parties need accurate financial information to understand their rights and obligations.
Failing to provide complete and honest financial disclosure can delay negotiations, increase legal costs, and affect the outcome of a case. In some circumstances, it can also lead to court orders requiring additional disclosure or other consequences.
Understanding what you must disclose, when you must provide it, and what happens if a party fails to cooperate can help you navigate the process more effectively.
Why Is Financial Disclosure Important?
The Ontario Court of Appeal has described financial disclosure as the most basic obligation in family law. In Roberts v. Roberts, 2015 ONCA 450, the Court upheld an order striking a party’s pleadings after repeated failures to comply with financial disclosure orders.
Financial disclosure helps parties and courts determine:
- Property division: What assets and debts each spouse has and how equalization may be calculated.
- Child support: Each parent’s income and the appropriate amount of support.
- Spousal support: The parties’ financial circumstances, needs, and ability to pay.
- Settlement negotiations: Whether a proposed agreement fairly reflects the parties’ financial situations.
Financial disclosure is also important when negotiating a separation agreement outside of court. Under section 56(4) of Ontario’s Family Law Act, a court may set aside a domestic contract if a party failed to disclose significant assets, debts, or other liabilities that existed when the contract was made. However, an agreement is not automatically invalid simply because a disclosure issue arises.
What Financial Information Must You Provide?
In Ontario family law proceedings, financial disclosure is governed primarily by Rule 13 of the Family Law Rules. The exact documents required depend on the claims involved and the parties’ financial circumstances.
1. Financial Statements
Depending on the type of claim, you may need to complete one of the following forms:
- Form 13 – Financial Statement (Support Claims): Generally used when the claims involve support but do not include a property claim or a claim for exclusive possession of the matrimonial home.
- Form 13.1 – Financial Statement (Property and Support Claims): Generally used when property claims are involved, including where support is also claimed.
These forms require information about income, expenses, assets, and debts, as applicable.
2. Supporting Financial Documents
Depending on the claims and applicable disclosure requirements, you may need to provide documents such as:
- Recent pay stubs
- Income tax returns and Notices of Assessment
- Employment or pension information
- Bank and investment statements
- Documents showing ownership and value of assets
- Information about debts and liabilities
- Business financial statements and records, if self-employed or a business owner
For certain support claims, Rule 13 specifically requires income tax returns, Notices of Assessment or Reassessment, and recent pay stubs. Additional documents may be required depending on the circumstances. It is important to check the requirements that apply to your particular proceeding rather than assuming the same checklist applies to every case.
3. Keep Your Financial Information Up to Date
Financial disclosure is not necessarily a one-time obligation.
Rule 13 sets out when financial information must be updated before court events. For example, updated information is generally required before a case conference or settlement conference if the last financial statement would be more than 60 days old, before a motion if it would be more than 30 days old, and before a trial if it would be more than 40 days old. The Rules also prescribe deadlines for serving and filing the updated information.
If your financial circumstances change, you should also ensure that the information you provide remains accurate and that any required corrections or updates are made.
What Happens If Someone Refuses to Provide Financial Disclosure?
If you believe the other party’s financial disclosure is incomplete, there are steps you can take.
Step 1: Request the Missing Information
Under Rule 13(11), if you believe the other party has not provided enough information to understand their financial circumstances, you must first make a written request identifying the additional information needed.
If the requested information is not provided within seven days, you may ask the court to order the party to provide it or serve and file a new financial statement. The court may address the issue through a motion or at a case conference or settlement conference. The seven-day period is tied to this particular disclosure procedure; it is not a universal deadline for every disclosure obligation.
Step 2: Ask the Court to Intervene
If the other party continues to withhold required information, you may seek a court order requiring further disclosure.
The court can consider the information requested, the relevance of the missing documents, the history of compliance, and the circumstances of the case when determining the appropriate response.
Step 3: Understand the Possible Consequences
Failure to provide financial disclosure can have serious consequences. Depending on the circumstances, the court may:
- Order the party to provide additional documents or an updated financial statement
- Award costs arising from unnecessary disclosure disputes
- Draw an adverse inference where appropriate
- Impute income for support purposes where the evidence justifies it
- In serious cases, strike a party’s pleadings
These consequences are not automatic. For example, in Roberts v. Roberts, the Court of Appeal upheld the striking of pleadings in exceptional circumstances after repeated non-compliance with court orders. This remedy is generally reserved for serious cases rather than every missed deadline or incomplete document.
What If You Are Self-Employed or Own a Business?
Financial disclosure can be more complicated if you are self-employed, own a business, hold investments, or have an interest in a trust.
For example, personal income may not tell the whole story where a party receives income through a corporation, has access to corporate funds, or holds significant business interests.
Additional records may be relevant, including corporate financial statements, business tax returns, shareholder information, and records relating to income or assets. The appropriate documents depend on the issues in dispute.
In some cases, an accountant or other financial professional may be needed to help assess income or value business interests. Providing clear and complete records early can help reduce disagreements about the parties’ financial circumstances.
Practical Tips for Financial Disclosure
Whether you are preparing your own disclosure or reviewing the other party’s documents, these steps may help:
- Organize your records early. Gather the documents relevant to your income, assets, debts, and expenses.
- Check for missing information. Review your financial statement carefully before providing it.
- Keep copies. Maintain organized records of the documents you provide and receive.
- Respond to requests promptly. If additional information is requested, address the request within the applicable timeframe.
- Correct inaccurate information. Ensure that financial statements and supporting documents remain accurate.
- Seek legal advice when needed. Complex finances, business interests, or disputes over missing assets may require additional guidance.
Complete and timely financial disclosure can make it easier to negotiate support and property issues and may help avoid unnecessary court proceedings.
Frequently Asked Questions
You are not necessarily required to have a lawyer prepare your financial disclosure. However, legal advice can be particularly helpful where you have complex assets, business interests, property claims, or concerns about missing information.
Potentially. Section 56(4) of Ontario’s Family Law Act allows a court to set aside a domestic contract in certain circumstances, including where a party failed to disclose significant assets, debts, or liabilities existing when the contract was made. Whether an agreement can be set aside depends on the facts and applicable law.
Yes, where the legal requirements are met. A court may impute income when the evidence supports doing so, including in some cases where a party fails to provide adequate income information. The amount and whether imputation is appropriate depend on the circumstances.
Financial disclosure is required in many family law proceedings involving support, property, or exclusive possession of the matrimonial home. The specific requirements depend on the claims and applicable rules.
If you suspect that assets have not been disclosed, you can request further information and seek legal advice about the available options. Depending on the circumstances, the court may order additional disclosure or consider other remedies.
Key Takeaways
- Financial disclosure is a fundamental obligation in Ontario family law matters involving support or property.
- The documents required depend on your case. Financial statements and supporting records vary according to the claims and circumstances.
- Disclosure must be updated when required. Rule 13 establishes specific deadlines before certain court events.
- You can request missing information in writing. If it is not provided within seven days, you may be able to seek a court order under Rule 13(11).
- Non-disclosure can have serious consequences, including costs, imputed income, adverse inferences, and, in exceptional cases, the striking of pleadings.
- Accurate disclosure can help resolve disputes more efficiently and support informed settlement negotiations.
