Litigation: The Family Law Process. Financial Disclosure

Welcome back to part 4 of our Family Law Process series. These posts will go through the family law process from start to finish, and will identify what you can expect to occur at each step. Please note that it is possible that not all of the steps will occur in your family law matter.

1.     Before starting your case

2.     Starting your case

3.     Replying to an Application

4.     Financial disclosure

5.     Filing and serving court documents

6.     Mandatory Information Program

7.     Conferences

8.     Motions

9.     Trials

Financial Disclosure

Financial disclosure plays a major role in family law matters. Financial disclosure is where the party provides the opposing party and the court, information regarding their financial circumstances. In family law, frank and full disclosure of one’s financial circumstances is expected and required. This includes a party’s income amount, their debts, assets, and expenses. A Financial Statement form is completed when a party makes a claim for child support, spousal support, or property division/debts.

There are 2 types of Financial Statements, the first being the Form 13: Financial Statement (Support Claims) and the other being the Form 13.1: Financial Statement (Property and Support Claims). The Form 13: Financial Statement (Support Claims) is used when a party makes a claim for child and/or spousal support. This form does not include claims for property and debts. On the other hand, the Financial Statement 13.1 (Property and Support Claims) is completed when there are claims for property or debts. This form can be completed if there are also claims for support alongside the property/debt claims.

           Along with the Financial Statement a party must complete, the party must also provide evidence as to their financial circumstance. A party must provide the following:

·        Proof of current income;

·        Proof of income for the past 3 taxation years: Notice of Assessments and Notice of Reassessments, or other proof of income if you cannot file an income tax return;

·        Proof of income from a corporation, trust, or partnership in the past 3 years;

·        Proof of any income received from employment insurance, social insurance, a pension, workers compensation, disability payments or other income source in the past 3 years;

·        A copy of your Record of Employment or other proof if unemployed;

·        Proof of child support expenses; and

·        Other documentation that you wish to file such as Notice of Calculation or Recalculation or agreements between the parties in relation to finances.

If a party is filing a Form 13.1 Financial Statement whereby there are claims of property and debt, the party must also provide the following:

·        Statements of bank accounts and investments (sole and joint);

·        Pension statements;

·        Statements illustrating the valuation of any property (sole and joint);

·        Life insurance documentation;

·        If you own or are part of a business, documentation illustrating income tax and financial statements;

·        Statements of debts and liability owed;

·        Documentation illustrating your financial value on the date of marriage for property owned and debts owed; and

·        Depending on your case, a Form 13B: Net Family Property Statement, and a Form 13C: Comparison of Net Family Property Statement may need to be completed. A Form 13B: Net Family Property Statement allows for the party to show their debts and liabilities at the valuation date, which will be defined below. The Form 13C: Comparison of Net Family Property Statement allows for a calculation to determine how much one spouse owes their former spouse (legally know as “equalization”).

When dealing with property and debt claims, there are terms that must be discussed as they can have a important role in determining equalization claims. The “date of marriage” is the date upon which you and your former partner legally married. The “valuation date” is the date upon which you and your former partner separated with no prospect of reuniting or cohabitating. This date can be tricky to calculate for various reasons, and will be discussed in greater detail in another blog.

Timing to Serve and File

           Your financial disclosure documents must be served onto the opposing party, and filed with the court either (1) with your Form 13 or 13.1 Financial Statement, or (2) within 30 days after your Financial Statement is served. If there are changes to your financial circumstances, your Financial Statement may need to be updated and refiled with the court at varying stages of your matter.

To note, the above should not be taken as legal advice, and if you have any questions or concerns about your case please speak to a lawyer. To find out how we can help you with your matter, please visit our website at https://www.grantleelaw.ca/ or call us at 905-315-6837 to book your consultation now.