What is financial disclosure? What happens if I do not disclose all of my assets?

Financial disclosure requires that both parties disclose their full financial circumstances to one another.

There are three different areas of one’s finances that each party needs to provide documentation for, relating to support and property. These three areas include employment-related documents, documentation on assets, and documentations on debts and liabilities.

When it comes to employment-related documentation, the documents that are commonly used in order to prove an individual’s salary includes, but is not limited to copies of the individual’s employment contracts, income tax returns (including all attachments and schedules), any notices of assessment or reassessment, recent pay stubs, financial statements, and so forth.

When it comes to the documentation for the individual’s assets, documentation that may be requested includes bank statements for all bank accounts, brokerage accounts, RRSPs, as well as any other investments, pension plan documentation, life insurance plan documentations, Canada Savings Bonds, trust documents, trust financial statements, title documents for all property both spouses own, documentation that proves the origin of any gifts, inheritances or personal injury awards, and so on. When the parties are married, this documentation is to be provided as of the date of marriage, the date of separation, and currently.

When it comes to the area of debts and liabilities, one must submit statements for all credit cards, lines of credit, and mortgage statements. When the parties are married, this documentation is to be provided as of the date of marriage, the date of separation, and currently.

In the event that one party does not provide the other party with full financial disclosure and a contract or settlement is reached, the Family Law Act permits a Court to set aside such a contract or settlement based on a lack of financial disclosure.

If an individual believes that his or her spouse is concealing information or assets, or simply not providing complete disclosure, then s/he may apply to the Court to compel the spouse to disclose the missing information.

Due to the fact that full disclosure is obligatory, many ask what documents each party is obligated to provide in order to have completed the process of financial disclosure. A lawyer can assist you in determining the issues relevant to your case as well as the financial disclosure requirements.

For more information on financial disclosure and information on the specific documentation that is required when providing financial disclosure, contact Krol & Krol at 905.707.3370.