The Importance of Financial Disclosure in Family Law
Article by Ken Fraser
In Family Law, Judges have consistently described the duty to disclose financial information as the most basic obligation in Family Law. Judges have raised concerns that the failure to abide by this obligation impedes the progress of the action, causes delay, and generally acts to the disadvantage of the opposite party. Complete and accurate financial disclosure is fundamental to ensure that parties can engage in fair and informed discussions to reach an equitable resolution or for a Court to make an informed determination.
Failure to make complete and accurate financial disclosure has been described as a cancer in Family Law proceedings, which discourages settlement, promotes settlements which are inadequate, increases the time and expense of litigation, undermines confidence in the legal system and brings the administration of justice into disrepute.
How To Make Financial Disclosure
The easiest and most accurate way to complete the financial disclosure process is for parties to exchange Financial Statements, which are standardized Court forms used in Ontario. There are two types of Financial Statements – a Form 13 which is used when the only issues to be addressed are related to support claims and a Form 13.1 which is used when the claims to be addressed include property claims.
A Financial Statement provides a comprehensive summary of a person’s financial circumstances. This includes their current and historical income, their regular expenses, their assets and their liabilities.
The financial information from a Financial Statement is used to address the important financial issues in Family Law. Each part of the financial statement serves a different purpose.
What To Do If Someone Will Not Provide Financial Disclosure
Outside of the Court process, there is little that can be done to force a party to provide their financial disclosure. Therefore, when a party fails to provide financial disclosure, it often becomes necessary to commence litigation. This can increase the time and cost required to resolve the issues. Accordingly, it is best that parties provide financial disclosure promptly and willingly.
When a matter is in court, parties are obligated to provide financial disclosure. If they fail to do so, the Court has a variety of powers under the Family Law Rules, including ordering costs, dismissing a party’s claims, striking documents, etc.
Given the importance of financial disclosure, the process should be done thoroughly and properly. Contact our experienced and detail oriented team of Family Lawyers to assist you with this process.
