No Financial Disclosure in Divorce: What Canadian Parents Can Do
Hello everybody, it’s me again, Janan. Today, I’ll talk about financial disclosure and child support. Specifically, I’ll cover the general requirements for exchanging disclosure during child support proceedings and what happens when the other party doesn’t provide the disclosure needed to calculate child support.
Just a gentle reminder: this video provides legal information, not legal advice. If you’re looking for legal advice, feel free to contact me directly, and we can discuss your specific situation in a one-on-one setting.
Now, let’s dive into the topic.
Why Financial Disclosure is Essential
Whenever you’re in court dealing with child support, one of the first steps before determining child support is exchanging financial disclosure. This is critical because child support is based on income, and both parties need accurate financial information to calculate the support amount.
Financial information can often be verified through documents such as notices of assessment, pay slips, or T4s. For employed individuals, looking at Line 150 on a notice of assessment is typically sufficient to determine their income.
However, for self-employed individuals or business owners, Line 150 might not tell the full story. Their income may not reflect their true earning potential or the health of their business. In such cases, additional business financial records might be required, including documents referred to as Cunningham or Sweezy disclosures. These terms come from court cases that clarified the rules for financial disclosure and are used to outline what records need to be provided.
Types of Financial Documents Typically Exchanged
The types of documents lawyers often request for calculating child support include:
- Notices of assessment.
- T4s.
- Pay slips.
- Business financial records (for self-employed individuals).
Providing this information early can streamline the process and allow both parties to focus on determining the appropriate child support amount rather than getting stuck on disclosure.
When One Party Refuses to Provide Financial Disclosure
What happens if one party refuses to share the necessary financial information?
Let’s say the payor—let’s use the example of a husband—refuses to provide his financial information without a valid reason. Here’s how this situation might unfold:
- Direct Request:
First, I reach out to the other party (or their lawyer, if they have one) via email, requesting the information. I typically allow 20–30 days for a response. - Formal Notice to Disclose:
If the direct request is ignored or refused, the next step is filing a formal notice to disclose with the court. This document officially requests the financial information. - Court Order:
If the party still refuses, the matter is escalated to the court. I ask the judge to issue a court order compelling the party to provide their financial disclosure.
Consequences of Non-Compliance
If someone refuses to comply with a court order for financial disclosure, there are serious consequences:
- Fines and Penalties: The court can impose financial penalties on the non-compliant party.
- Legal Costs: The party may be ordered to cover the other side’s legal costs.
- Contempt of Court: Non-compliance can lead to contempt findings, which carry additional penalties.
- Imputation of Income: The judge has the discretion to impute income, meaning they assign an income level to the non-compliant party based on available information.
What is Imputed Income?
If someone refuses to provide their financial disclosure, the judge may impute income to that person.
For example, if the payor works as a dentist and the court is presented with general salary ranges for dentists—let’s say $150,000 per year—the judge can set their income at that amount for child support calculations.
If the person earns less than the imputed amount, they are still required to pay support based on the higher income until they provide accurate financial records to adjust it.
Enforcing Child Support Orders
Once a child support order is granted based on imputed income, it can be registered with Alberta’s Maintenance Enforcement Program (MEP). MEP enforces child support orders, including those based on imputed income, regardless of whether the imputation accurately reflects the payor’s earnings.
To undo an imputation of income, the non-compliant party must provide the necessary financial disclosure.
Why Disclosure is Non-Negotiable
For anyone thinking they can avoid paying child support by withholding financial information, think again. Courts take non-compliance seriously, and imputed incomes are often set higher to ensure fairness to the recipient.
As a lawyer, my goal is to handle financial disclosure quickly and comprehensively, allowing the parties to focus on substantive issues like determining the correct child support amount.
Final Thoughts
If you’re involved in child support proceedings, know your rights and responsibilities. Financial disclosure is a key step in the process, and non-compliance can lead to significant consequences.
I hope this video provided helpful information about financial disclosure in child support cases. If you have questions or need specific legal advice, feel free to contact me. Also, if you enjoyed this video, show some love online—Google reviews are always welcome!
Thank you for tuning in, and I’ll be back with another legal topic soon. Take care!