Financial Disclosure in BC Family Law: What You Must Share

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In his decision from Cunha v Cunha, the Honourable Justice Fraser stated, "Non-disclosure of assets is the cancer of matrimonial property litigation".

What Is Financial Disclosure in BC Family Law?

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.

What Documents Must You Provide (Form F8)?

In the BC Supreme Court, financial disclosure starts with the Form F8 financial statement, a court form setting out your income, expenses, assets and debts. Under Rule 5-1 of the Supreme Court Family Rules, the financial statement must be filed and served with the applicable income documents attached, such as personal income tax returns, notices of assessment and, where they apply, business, partnership or trust records. It is generally due within 30 days after service of the document in which the claim is made, or within 60 days if the disclosing party resides in a country other than Canada or the United States (Rule 5-1(11)), unless the court orders another period. If a judicial case conference is scheduled, the financial statement must also be filed in advance of it. See our post on judicial case conferences (JCCs) in BC.

What Happens If You Hide Assets (FLA s. 213)?

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.

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.

Rule 9-1: Document Discovery

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 work toward a fair outcome. 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 Surrey family lawyers to assist you today.