Financial Disclosure and Striking Pleadings

It is crucial that a party to a matrimonial matter understand that there may well be significant consequences if he or she does not comply with his/her financial disclosure obligations. In many cases, one of the parties withholds financial documents from the other in order to conceal the information contained in those documents or as a tactical delay in the proceedings.

As we were reminded in the case of Roberts v. Roberts, if parties do not comply with their financial disclosure obligations, they may have their pleadings struck by the Court, and as a consequence, may be susceptible to the opposing party proceeding with an undefended trial. Justice Benotto of the Court of Appeal in Roberts v. Roberts discusses the importance that is placed on one’s obligation to disclose his/her finances as follows:

"The most basic obligation in family law is the duty to disclose financial information. This requirement is immediate and ongoing.

Failure to abide by this fundamental principle impedes the progress of the action, causes delay, and generally acts to the disadvantage of the opposite party. It also impacts the administration of justice. Unnecessary judicial time is spent and the final adjudication is stalled.

Financial disclosure is automatic. It should not require court orders - let alone three - to obtain production.

The power to strike out the pleadings is to be used sparingly and only in exceptional cases. This is such a case. The appellant's conduct in ignoring court orders and failing to follow the basic principles of family law litigation put him in the exceptional category of cases where the judge's discretion to strike his pleadings was reasonably exercised..."

To learn more about the requirements with respect to financial disclosure, striking pleadings, as well as the services provided by Krol & Krol, call 905.707.3370 today.