A Really Big Separation and Divorce Mistake in Ontario: Not Getting Full Financial Disclosure From Your Ex-Spouse!
Is financial disclosure in your separation or divorce really such a big deal?
Absolutely, it is!
A new client, John, called me on the phone a few weeks ago proudly telling me that he reached an agreement with his ex-spouse on his family law issues.
When I asked John whether he had exchanged financial disclosure with his former wife, he said to me, “what’s that?”
Obviously, John had not exchanged full financial disclosure with his ex-wife.
After I reviewed John’s proposed separation agreement and his financial situation, I revealed to him that he would have paid more than $42,000 extra to his former spouse that he was not required to pay.
He was sure glad he didn’t have to do that. He wanted to get a new house and that money can easily help with that important purchase.
Hi, my name is Thomas O’Malley. I’m an experienced family lawyer in Durham Region and the GTA.
You can only really determine your legal rights in your separation or divorce when you have full financial disclosure from your spouse.
What is full financial disclosure? Full financial disclosure means that your spouse provides full information on their income and expenses as well as the value of their assets and the amounts of their debts to you.
If you don’t have this information, you can’t figure out the important issues of child support, spousal support and the property issues in your family law case.
Full financial disclosure really involves a two-step process. First, you and your spouse must complete a Financial Statement.
You and your spouse complete separate Financial Statements. Your Financial Statement describes all of the details of your financial situation.
There are 5 key sections of the Financial Statement. In the first section, you must set out all sources of your income. You must set out your monthly expenses, such as rent or mortgage payments, in another section. You must also include the value of your property on the date of separation (called the valuation date). Your property includes real estate, bank accounts, RRSPs, and business interests.
In the fourth section of your Financial Statement, you must include your debts and liabilities. Your debts and liabilities normally include the total amount owing on a mortgage, outstanding credit card debts, income tax liabilities, and other outstanding debts.
Your final section includes the property you own the date of marriage and excluded property, such as inheritances, and the amount of your debts on the date of marriage.
You need to use the Financial Statement whether you are married or in a common law relationship.
The second step is that your spouse must provide documents that prove how much income they earn on a yearly basis and statements showing their amount of their assets and debts.
You and your spouse must always complete a Financial Statement both when you are involved in a family law case in court or attempting to negotiate a separation agreement.
You cannot protect your legal rights, determine how much money are you entitled to keep in your separation or divorce, or how much spousal support your spouse must pay you if you and your spouse don’t complete a Financial Statement.
Don’t negotiate a separation agreement with your spouse unless they complete a Financial Statement. Don’t accept any excuse your spouse gives you for not completing a Financial Statement.
You must also provide your Financial Statement to your spouse.
If you have any questions about your separation, divorce or family law case and you would like our help, feel free to contact on my Facebook law office page, that’s O’Malley Family Law, or call me at 905-4343-8837 and I’ll point in you in the right direction.
Join my free Durham Region Separation and Divorce Legal Support Group here: https://www.facebook.com/groups/DurhamRegionSeparationandDivorceLegalSupport
Please make sure to share this important information with your friends, family members and co-workers.
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