Financial Disclosure & Ontario Family Law

There is a recent decision of the Alberta Court of Appeal, Webb v. Birkett, wherein the court held that Family Law Lawyers, whether engaged in mediation, the collaborative law process, or any other process, has a duty to obtain full and complete financial disclosure, unless the client, being properly informed, waives the requirement.

The Court of Appeal held that it is the duty of every lawyer in a family law case to do the following:

– obtain reliable information to be able to ascertain what the client would likely receive or have to pay for spousal support, child support or property division and to advise the client;

– to discuss the options of settlement with a client, to discuss whether a settlement is reasonable, and to evaluate a settlement in comparison to other options;

-if a client is willing to settle without full disclosure from the other side, and therefore, may be accepting less or paying more than they would be required to pay by law, if possible, to advise the client as to what might be lost or paid. (ref – Family Law Newsletter, April 19, 2011, Epstein’s This Week in Family Law)

Therefore, although clients do not like to go through the process of obtaining financial disclosure to provide to the other side or evaluating financial disclosure received from the other side, it is an important part of the process and is necessary for any lawyer that does not want to be negligent. However, it is ultimately the client’s decision if he/she wishes to resolve their matter without some or all of the financial disclosure. He/she should ensure that he/she is making an informed decision and will not regret his/her decision years down the road for not obtaining full disclosure.

Feel free to contact our family lawyers to discuss the issue of disclosure in regards to your support or property claims. Fine & Associates Toronto divorce lawyers can also field any inquiries you may have about family law or divorce law.

When commencing court proceedings or negotiating a Domestic Agreement, it is usually necessary to draft a Financial Statement.  When completing the Financial Statement, it will also be necessary to obtain all supporting documentation to substantiate the assets and liabilities as listed in your Financial Statement.  This can be a difficult and tedious process. If you are unable to substantiate the assets and liabilities as of the date of marriage, you will probably be unable to claim the deduction.  If it is discovered that you did not disclose your assets as of the date of separation or the date of marriage, there is a risk that the Domestic Agreement may be set aside and you will be accused of swearing a false statement.  It is always important to make full and complete financial disclosure.

Whether you need a divorce lawyer or family lawyer, at Fine & Associates we have the perfect attorney for you. Contact us with any questions that you may have.