When going through a separation, navigating the financial aspect of the marriage is imperative to reaching a fair distribution of assets. This is why both sides require a full financial disclosure as per Section 5 (1) of the Family Law Act in British Columbia.
In his decision from Cunha v Cunha, the Honourable Justice Fraser stated, “Non-disclosure of assets is the cancer of matrimonial property litigation”.
In family law, disclosure refers to the process of both parties exchanging their finances in a timely manner, typically in the form of a financial statement; a document composed of an individual's tax and income documents as well as information relevant to one's assets and debts. Additional documents related to credit cards, mortgage payments, line of credit, RRSP and investment accounts are some documents that help support the figures found in a financial statement. This transparency allows both parties, and the court, to clearly understand exactly what is at stake and if a potential unequal division of assets is warranted. Furthermore, if child support and spousal support are applicable to your separation, the income of both parties is used to determine the value of support and the payor, hence an accurate financial statement is paramount in reaching a fair decision.
It is ideal if both parties share their finances voluntarily and truthfully as failure to do so can have adverse effects on their position in the litigation. Not only does this cause delays and escalate costs in the litigation process due to the additional resources required to uncover hidden assets, it also taints the image of the falsifier. This could impact property settlements as the credibility of the wrongdoer's financial statement is questioned, all while incurring fines from the court.
If either side fails to disclose their finances, or provide incomplete, misleading or false information, Section 213 of the Family Law Act provides a remedy, including but not limited to making an inference of what the court considers to be an appropriate figure representing the individual's true income, which can lead to an unfavourable outcome.
Disclosure is not limited to strictly financial documents but, as per Rule 9-1 Discovery and Inspection of Documents of the Supreme Court Family Rules, refers to any document in the party’s possession or control that could be used by either party to prove or disprove a material fact.
There may be instances where you dispute your former spouse's income if, for example, they operate their own business and can manipulate their earnings which only creates additional hurdles in the separation process. Our team of qualified and experienced lawyers can guide you through the process to ensure your disclosure is carried out to the standards of the court and help you secure the fair outcome you deserve. Contact SiLaw Group Family Lawyers today to find out more about your financial obligations when you are dealing with a separation and book a free 30 minute consultation with one of our White Rock Family Lawyers to assist you today.
Comments