In the event of separation or divorce, accurate and complete financial disclosure is made by both the spouses. The total asset and liability as on the date of marriage and date of separation need to be determined and disclosed.
The financial disclosure includes a sworn financial statement accompanied by a document brief, supporting the information described in the financial statement.
Why is Financial Disclosure important?
All decisions regarding the child, spousal support, property division will be determined on the basis of the spouse’s respective incomes and the number of children. Financial disclosure becomes really important to make these decisions.
The complete financial disclosure highlights the respective spouses’ incomes, assets and liabilities on specified dates as per the individual marriage circumstances.
Document Checklist for Financial Disclosure
Each spouse needs to arrange documents for their own financial disclosures along with their Lawyer. Any asset they want to be excluded from the list of assets for specified dates needs to be supported with valid documents and their reasons. There are many documents which are submitted as part of the Financial Disclosure including individually but not limited to:
- Income tax returns for the last three years
- Notices of assessment for the past three years.
- Latest mortgage statements of all properties
- Home valuation or home opinion report for all houses owned
- Credit card statements for all cards you hold
- Latest chequing and saving statements for all accounts you hold (whether in single or joint capacity)
- Surrender Value Quotations for Life insurance and Endowment policies
For a spouse who is self-employed or owns a business, additional documents will be required including:
- Business tax returns
- Business financial statements
- Business ledgers and minute books
- All business bank statements.
Detailed and accurate financial disclosure should be done whether the matter is settled in Courts or outside. It is each spouse’s responsibility to provide complete financial disclosure documents whenever requested by the other spouse’s lawyer.
In any circumstance, if the financial disclosure you made is found inadequate or inaccurate, your spouse can apply to the court for making your separation agreement void due to your non-disclosure.
If any spouse makes false or incomplete financial disclosures, he/ she may end up paying costs award for going against the law, may have to make retroactive payments or pay substantial legal fees to resolve the matter.
For a fair settlement, the complete disclosure of all financial information is vital.
How We Can Help
At Nanda & Associate Lawyers, our capable divorce lawyers help in making effective representation for all assets and liabilities under financial disclosure to ensure your best interests are maintained. They understand your specific circumstances and provide tailored and customized solutions for each of them. Many legal complexities exist in determining assets, income and deciding what merits disclosure and an experienced divorce lawyer can help you to navigate better.
Our Mississauga Divorce Lawyers are available for a no-obligation free consultation. Come and experience our quality legal counsel and personalized care we give to each client.