When spouses separate, both parties must generally provide complete and accurate financial information before issues such as child support, spousal support, and property division can be resolved.
This process is known as financial disclosure. It allows each spouse, their lawyers, and the court to understand the full financial picture and determine whether a proposed settlement is fair.
What Must Be Disclosed?
Ontario courts expect spouses to exchange full and frank financial disclosure as early as possible. Financial disclosure usually includes information about income, expenses, assets, and debts. Depending on the issues, spouses may be required to provide:
- income tax returns and Notices of Assessment;
- recent pay statements;
- bank and investment statements;
- mortgage and credit card statements;
- pension or RRSP information; and
- documents relating to businesses or corporations.
In property cases, spouses may also need to prove what they owned and owed on the date of marriage and the date of separation.
Form 13 or Form 13.1?
The financial statement a spouse must complete depends on the issues in the case.
Form 13: Financial Statement (Support Claims) is generally used where the case involves child support or spousal support but does not involve property claims.
Form 13.1: Financial Statement (Property and Support Claims) is used where either spouse is making claims involving property or debts. Form 13.1 must be used in a property case even if support is also being claimed.
A spouse will also usually complete Form 13A: Certificate of Financial Disclosure. This form identifies the supporting documents that have been provided to the other spouse and confirms the status of the person’s disclosure.
Financial statements are sworn or affirmed documents. They should therefore be completed carefully and accurately. Estimates should be clearly identified, and information should not be omitted simply because a spouse believes it is unimportant.
Disclosure Is Ongoing
Financial disclosure is not necessarily a one-time requirement. If a spouse’s income, assets, or debts change while the case is ongoing, updated information may need to be provided.
Annual income disclosure may also continue after an agreement or court order is made, particularly where support must be reviewed or recalculated.
What Happens If a Spouse Refuses to Disclose?
A spouse cannot avoid disclosure by ignoring requests or providing incomplete information. The other spouse may ask the court to order production of the missing documents.
A spouse who continues to withhold information may face serious consequences, including cost awards, limits on the evidence they may rely on, adverse findings, or the striking of their claims or pleadings. The court may also impute income where a spouse has hidden or understated their earnings.
Conclusion
Financial disclosure is important both inside and outside court. Spouses should not sign a separation agreement without understanding each other’s financial circumstances.
Where one spouse fails to disclose significant assets or debts, the agreement may later be challenged or set aside.
Although financial disclosure can feel intrusive, it is often a necessary part of reaching a fair and enforceable resolution. Anyone who believes financial information is missing or being concealed should speak with an Ontario family lawyer about the steps available to obtain it.
Attention Legal Counsel: Professional Mediation Services
When your clients have reached an impasse in settlement discussions, Andrew Feldstein offers third-party mediation services specifically designed for cases where both parties have independent legal representation.
Why lawyers refer cases to Andrew:
• 30+ years family law litigation experience providing courtroom-informed reality testing
• Expertise in complex financial matters including business valuations and professional corporations
• Efficient, structured process that respects counsel’s time and maintains client relationships
• Flexible scheduling including virtual mediation and travel to counsel offices
Cases we handle: Negotiation stalemates, complex asset division, support calculation disputes, parenting arrangements, multi-jurisdictional matters, and post separation modifications.
Refer your next mediation: Call Andrew directly at 905-415-1635 ext. 255 or email info@separation.ca. Virtual and in-person sessions available throughout the GTA.
Categories: Divorce and Separation, Financial Disclosure, Family Law, Spousal Support, Property Division