Financial Disclosure and What Happens If Assets Are Hidden in Ontario Family Law
When couples in Ontario separate or divorce, whether they have been married or in a common-law relationship, fully disclosing financial information is one of the key steps towards a fair resolution. This means both parties have to complete, then show each other documents setting out their finances such as income, savings, debts, liabilities, real estate, investments etc. Doing so, assists in deciding how to divide things up, calculate support payments, if any, and enter into agreements that work for everyone. Commencing this process as soon as possible after separating, and providing updated information as it becomes available, helps avoid disagreements and surprises down the road. If a party hides money or does not share everything (such as forgetting to disclose a bank account or undervaluing a car) it may create larger future issues. Courts may interpret this as unfair and harmful, like a hidden issue that messes up the whole process. It might result in uneven splits of property, invalid or unenforceable agreements, extra costs, or even losing the opportunity to present your side of the facts in court. The rules advise that you need to fill out forms swearing, or affirming, that your information is true, providing proof like tax returns, notices of assessments, bank statements, and business details. At Stephen Durbin and Associates, we assist people with what is often a daunting procedure, we understand that, and we lessen your burden by providing you with the support and direction you need while navigating your disclosure obligations and providing the strong counsel you will require if the other side isn’t playing fair. Addressing this in the early stages can save time, money, and stress, especially when children are involved and support is on the line.
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Find a Lawyer to Help with Financial Disclosure in Ontario
If you’re going through a breakup in Ontario and worried about sharing or hidden financial information, getting help from an experienced family lawyer is important. They can guide you on what to share, spot if something’s being hidden, and fight for fairness if the other person is not being honest. At Stephen Durbin and Associates, our team has a lot of experience with money matters in separations, from verifying documents and forms to handling cases where assets are being concealed. We help you assemble your financial details, answer fair requests, and ask the court for assistance if needed. Whether it’s about support for you or your kids, dividing what you own, or reopening an unfair deal because financial information was hidden, we provide advice tailored to your situation. We focus on keeping things balanced so that you are not overwhelmed by too many demands, while making sure everything is out in the open. Drawing from Ontario’s family laws and court cases, we dig deep into issues and stand up for you. Reach out to us for a chat about how we can make this easier and protect what’s yours.
What is Financial Disclosure in Ontario Family Law?
Financial disclosure is the sharing of all your financial details during a separation or divorce. This covers things like your home, cars, savings, retirement funds, businesses, and any debts or loans. In Ontario, you fill out and complete court forms (under oath or affirmation) about your finances, backed up by documents like pay stubs, bank records, and tax returns. These forms should be updated as your finances change. The goal is to make sure both sides have the full picture for fair talks or court decisions. Courts do not like it when people wait until they order it sharing openly from the start is expected.
What Happens If You Don’t Share or Hide Assets?
Hiding assets or not sharing everything can lead to tough penalties. For example, the court might impute (assuming you earn more than you say) your income to a higher amount for support payments, give more property to the other person, or even set aside any agreements you have already signed (basically throwing them out). In some cases, you may have to pay the other side’s legal fees or may even have your court arguments ignored. It drags out the process, costs more, and damages trust. The person who shares honestly usually gets better treatment from the court, as being open is seen as crucial for a fair outcome.
Important Court Cases in Ontario About Financial Disclosure
Ontario courts have made it clear that sharing your financial details is a must in family law matters. Under section 56(4) of Ontario’s Family Law Act, courts can step in and set aside agreements if they were made unfairly because one person did not provide full and frank financial disclosure. This helps protect everyone by making sure agreements are based on complete and honest sharing of finances, keeping things fair.
The Supreme Court of Canada in Colucci v. Colucci (2021 SCC 24) highlighted how vital it is for full and frank financial disclosure in support decisions, especially when kids are involved, and that without it, the whole system falls apart. Rick v. Brandsema (2009 SCC 10) demonstrated how, if someone is not honest about their finances when negotiating a separation agreement, the court can step in and change it if it’s not fair under the law.
In the recent case of Ontario is Wang v. Li (2024 ONSC 2352), one spouse completely refused to share any financial information. Because of this secrecy, the court decided that no money was owed for equalization (splitting property) to the husband, as the wife had been kept totally in the dark about finances throughout the marriage.
In another recent Ontario case of Beaudoin v. Stevens (2023 ONSC 4401), the court made it clear just how damaging it can be when someone hides important financial details during family disputes. If you are the parent responsible for paying child support, you have to be totally honest about any changes in your income. This keeps support arrangements fair and trustworthy. To deal with people who do not fully disclose, courts have tools like assuming you earn more than you say (imputing income), ignoring your side of the story, making negative assumptions about you, or ordering you to pay the other person’s legal costs. The idea is to encourage quick and open sharing so everyone doesn’t keep ending up back in court fighting over basic information.
All these court decisions and laws together show how seriously judges take keeping family law fair. They stress the need for complete money sharing and warn of consequences for those who try to skip it. So, if you’re in a family dispute, it’s smart to follow these sharing rules to get fair results.
How Can Stephen Durbin and Associates Help You?
We make financial sharing straightforward by helping you prepare your information, check what the other side provides, and look into any suspicions of hidden stuff—sometimes with experts like accountants. We’ll fight in court for orders if someone’s not sharing, push back on unfair demands, and represent you fully. Our goal is to sort things out quickly and fairly, focusing on your needs in Burlington and Ontario.
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