What Happens If I Do Not Want to Disclose My Financial Information During a Separation?
Table of Contents
The Obligation to Disclose Financial Information
One of the fundamental obligations in family law is the duty to provide full and frank financial disclosure. This obligation arises immediately upon separation and continues throughout the resolution process.
As the Ontario Court of Appeal stated in Roberts v. Roberts, 2015 ONCA 450, at paragraph 11:
“The most basic obligation in family law is the duty to disclose financial information. This requirement is immediate and ongoing.”
Similarly, the Supreme Court of Canada emphasized the importance of financial transparency in Michel v. Graydon, 2020 SCC 24, at paragraph 33, stating:
“Failure to disclose material information is the cancer of family law litigation
Why Financial Disclosure Matters
Financial disclosure is essential because it allows both parties to make informed decisions regarding property division, spousal support, child support, and other financial matters arising from the separation.
Risks of Not Providing Full Disclosure
If a separation agreement is entered into without full and frank financial disclosure, there is a significant risk that one party may later apply to the court to have the agreement set aside.
Courts take the obligation to disclose financial information very seriously and may invalidate an agreement if they determine that a party was not provided with sufficient financial information before signing.
Proceeding Without Full Disclosure
For this reason, we strongly encourage our clients to exchange complete financial disclosure before finalizing any separation agreement.
In circumstances where a client nevertheless chooses to proceed without full disclosure, we require the client to acknowledge the associated risks and sign a written waiver confirming that they understand those risks and release our office from liability should the agreement be challenged or set aside in the future.
The Importance of Legal Advice
Every family law matter is unique. Obtaining independent legal advice before signing a separation agreement can help protect your rights and reduce the likelihood of future disputes.
Meet Maral
Maral began her academic journey with a Bachelor of Psychology from York University, She then studied Doctor of Pharmacy at the University of Waterloo. Her deep-rooted passion for helping others ultimately led her to transition into the legal field. She earned her LL.B. from the University of Law in the United Kingdom and went on to complete her articles at a plaintiff-side personal injury firm, as well as a boutique firm in North York. There, she gained hands-on experience in multiple areas of law, including Real Estate, Family Law, and Wills & Estates. Maral brings a compassionate, client-focused approach to her legal practice, shaped by her diverse academic background and dedication to advocacy.