Author: Stacey Staios - Associate Lawyer & Real Estate Manager

Financial disclosure refers to the information provided by parties to a domestic contract that sets out their income, assets, debts, liabilities and expenses. Domestic contracts can include cohabitation agreements, marriage contracts and separation agreements. These agreements can outline how the parties will divide property and determine spousal support in the event there is a breakdown in the relationship or marriage. If you are applying to the court to resolve your matter, the court will require detailed, accurate financial information that you will have to swear to the accuracy of.

Full financial disclosure is the baseline for most domestic contracts. Before both parties can begin negotiation, a lawyer must advise their client to seek full financial disclosure from the opposing side, as well as prepare their own. Each party’s knowledge of the other’s financial information bears so much weight that without it, a domestic contract can be set aside.¹

An important principle in family law proposes that separating spouses are required to share the growth in value of their assets accrued during the marriage. In order to equalize net family property for married couples, both sides will have to show the value of all assets and liabilities at the date of separation, and the value of all assets and liabilities at the date of marriage.

In terms of child support, amounts will be determined based on the child support guidelines under the Ontario Family Law Act. In order to determine the amount of child support to be paid, the payors income must first be disclosed in the initial financial disclosure.

Although one or both parties may feel hesitant to disclose their full financial information, the law requires them to do so. If a party fails to disclose such information, or is intentionally deceitful about amounts, the total in which the party was hoping to save will be spent threefold on legal fees at a later time. The party may also be required to make retroactive payments or pay for any costs awarded against them in court. Although locating and disclosing such information may be time consuming, it is essential to ensure any agreement is reached via fair and enforceable means.

In certain cases, parties may believe they can settle disputes amicably without providing any financial disclosure. However, just because an agreement was reached, if no disclosure was provided, you cannot really know what you are agreeing to, nor can a lawyer advise you. Given that section 56(4)(a) does not make a distinction between contested and uncontested agreement, financial disclosure is required to ensure a valid marriage contract.

Stacey Staios is an associate lawyer and real estate manager at Carson Law. After completing her articling at the firm, she was gladly brought on to start and grow her legal career. To find out more about Stacey, please check out her profile.

Articles written by Stacey Staios:

Multiple Wills
Ontario Executor Checklist
Estate Considerations
Locating a Missing Beneficiary
Power of Attorney Disputes
Independent Contractor vs. Employee
Family Law Litigation - Part 2
Family Law Litigation - Part 1
Family Status Discrimination
Social Media Policies in the Workplace
Calculating Equalization Testamentary Capacity Aggravated and Punitive Damages Leaves of Absence in Ontario Co-Parenting In The Age of a Pandemic Corollary Relief Disability Accommodation in the Workplace
Estate Planning: A How To Guide Should You Consider A Cohabitation Agreement? What Is Wrongful Dismissal?

Disclaimer

The content on this web site is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. Users of this web site are advised to seek specific legal advice by contacting members of Carson Law, Carson IP, or their own legal counsel regarding any specific legal issues. Carson Law does not warrant or guarantee the quality, accuracy or completeness of any information on this web site. The articles published on this web site are current as of their original date of publication, but should not be relied upon as accurate, timely or fit for any particular purpose.

References

¹ Family Law Act, s.56(4)(a)