The Importance of Financial Disclosure Family Law Ontario

Financial disclosure is a fundamental aspect of the family law process in Ontario, ensuring a fair and equitable resolution for both parties. This obligation applies to both married and unmarried individuals, governed by the Divorce Act and the Family Law Act, respectively.

In this blog, we will discuss the question of financial disclosure family law Ontario: why financial disclosure is necessary, what needs to be disclosed, and the consequences of non-disclosure.

Why is Financial Disclosure Necessary?

• Full and frank disclosure of all relevant financial documents is essential for two main reasons:
• Assessing Income: To determine accurate child and spousal support amounts.
• Calculating Net Family Property: For the fair division of assets in divorce cases.

Spousal Support

Spousal support lawyer takes into account numerous intricate factors, such as the earnings history throughout the marriage, the economic and childcare roles of each spouse, the financial consequences of the dissolution, and the assets and liabilities acquired during the marriage.

This evaluation can be quite comprehensive. So, as per family law Ontario, the wide range of factors involved necessitates a thorough disclosure of documents to establish entitlement, support amount, and duration.

Child Support

Child support calculations are primarily based on the payor’s income. Key documents required include:

• The last three years of income tax returns and notices of assessment.
• Recent pay stubs showing year-to-date totals.

Consideration for Business Owners

For business owners, additional documents like financial statements and business tax returns are necessary. In certain scenarios where determining business income is challenging, a corporate valuation and income analysis is required for financial disclosure Ontario.

Equalization of Net Family Property

For married couples, financial disclosure family law process involves:

• Identifying all assets and liabilities at the date of marriage and separation.
• Attaching a fair market value to each item.
• Clarifying if assets were gifts or loans, requiring evidence of their nature.

Consequences of Non-Disclosure

The default assumption is that requested documents should be produced. Unless the documents are completely irrelevant to any legal argument or the disclosure request is disproportionate to the case’s issues, the standard practice should be to provide the documents.

Failing to disclose financial information can lead to significant consequences:

• Income Imputation: Courts may estimate your income if your financial disclosure is inadequate.
• Legal Sanctions: Under Rule 19 (Document Disclosure) and Rule 20 (Questioning a Witness and Disclosure), the court can enforce disclosure through various orders and sanctions.

For Example:

In Roberts v. Roberts, 2015 ONCA 450, Benotto J. A. said, “The most basic obligation in family law is the duty to disclose financial information. This requirement is immediate and ongoing. Failure to abide by this fundamental principle impedes the progress of the action, causes delay and generally acts to the disadvantage of the opposite party.”

Seeking a Spousal Support Lawyer Ontario?

SR Law Firm excels in dealing with Ontario family law situations of complex and sensitive nature. From our divorce lawyers Oakville, to our Spousal support lawyer Ontario, we make sure that your case is prepared carefully, with a personalized approach – to offer you the most effective representation in court!

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