Financial disclosure – what is it?

The most typical question we get as lawyers from clients who are separating or divorcing is, "What is financial disclosure in family law?"

If you and your spouse are divorcing or separating, you must exchange your financial information if:

This is known as financial disclosure. It entails providing each other with complete and accurate information about your income, spending, assets, and obligations.

Your financial disclosure assists you and others, such as lawyers, mediators, or the court, in determining:

How frequently do you need to provide complete financial information?

To ensure that the child support or spousal support order or agreement is fair, you and the other party must disclose all relevant financial information when determining the order or agreement for the first time.

You have to provide all of your financial details if you have a child support order or agreement:

Read your spousal support order or agreement carefully to see what it specifies on how frequently you must disclose your whole financial situation.

What happens if you refuse to give part or all of your financial information?

If you do not provide complete and accurate financial information, the court may:

If you failed to provide complete financial information or made an error when filling out your form, update the court as soon as possible.

Child Support

To ensure that your children receive the assistance they are legally entitled to, you must know both parents' actual earnings when calculating child support.

To calculate child support using the Child Support Tables published by the federal government, parents frequently utilize line 15000 of their most recent income tax return.Β 

However, to provide a more thorough and accurate picture of your finances, you might need to include your previous three years' income tax returns or corporation returns in your financial declaration if one of you is self-employed or runs a business.

Sometimes just one parent must provide proof of income. This is the scenario when all of the children reside with only one parent and no special costs are incurred.