Are Financial Disclosures Necessary During Divorce?

For most people, the path of divorce is uncharted territory. In addition to being a newbie to divorce, there is a lot of information that varies from case to case and law to law. Financial regulations, as well as legal regulations, play large roles when defining the outcome of a divorce.

At Fairway, one of the most popular questions we receive from clients is regarding the financial disclosures portion of a divorce:

• Do I need to disclose my financials?
• Can my spouse hide their financial information? and
• How can I find out if my partner has hidden their financials?

Read the answers to these questions that touch on the law and ethics to give you a well-rounded understanding.

Are financial disclosures necessary?

It is important to disclose your financials because:

• If you don’t, you cannot rely on any agreement you make; the agreement is void
• You have an obligation to disclose all financials under acts in the :
• Federal Child Support Guidelines and the Supreme Court of Canada, as well as provincial legislation
• There can be legal penalties for not providing disclosure

Can my spouse hide information within their financial disclosure?

The short answer is, yes people can hide details in their disclosure, however, they cannot legally hide it. Therefore, each party has an obligation to fully disclose

The consequences of not fully disclosing financial information:

• The agreement can be voided and reviewed, which will cost both parties more money for the review as well as drafting a new agreement
• There can be financial consequences; spousal and/ or child support can change, tax implications, a backlog of payments can be implemented etc.

How can I find out if my partner is hiding anything?

You may want to find out if your partner is hiding financial information.  If your partner grants you permission you can go to the bank and recover the details.

In case your partner doesn’t cooperate, then you can go to the court and have the other party served a notice that requires them to voluntarily disclose all details. If they do not, the court will order them to disclose the details.

Divorce is never going to be easy, regardless of how amicable you and your partner are. The fact of the matter is that there is a process to complete and regulations to follow, which can  make going through a divorce complicated. 

Financial planning and financial disclosures are a very important part of the divorce process and an important source of disagreements between the divorcing couple. The divorce financial experts and trained financial planners of Fairway Divorce Solutions will guide you to the best financial outcome for your divorce. Read Financial Planning for more details.