Financial Disclosure

[myrivers]

A buddy of mine just went thru a CL separation and went the formal 'lawyer' route. Together apprx 4 years plus had a child. During the process both parties had too provide full disclosure of all assests, liabilities. A very detailed and painful experience plus having to dig up last 3 years tax returns. I believe they 'co-mingled' there financials together as a couple.
In the end, he kept the house, no SS but of course has CS to pay. No lump sums transfer between them. Mostly issues around who's going to pay off loans.

Now to my questions....
1. what is the purpose of disclosure for CL?
2. Is it a legal requirement of the process or just a lawyer tactic?

I remember reading that a finanical statement must be filed if your legally married and getting a divorce via the court.

thanks for your help/comments

[logicalvelocity]

myrivers,

Financial disclosure between the parties really has nothing to do with common law status or married. The financial disclosure is required to validate the separation agreement as if it does not occur, the respective agreement could be set aside and seen as void.



See the Family Law Act R.S.O. 1990, Chapter F.3 on the issue of "Domestic Contracts"

http://www.e-laws.gov.on.ca/DBLaws/S...f03_e.htm#BK59

Section 56(4)

Setting aside domestic contract

(4) A court may, on application, set aside a domestic contract or a provision in it,

(a) if a party failed to disclose to the other significant assets, or significant debts or other liabilities, existing when the domestic contract was made;

(b) if a party did not understand the nature or consequences of the domestic contract; or

(c) otherwise in accordance with the law of contract. R.S.O. 1990, c. F.3, s. 56 (4).

lv

[myrivers]

Thanks LV. Still curious as to how it 'validates' the CL agreement?
Sounds more like lets flush out all the assests on the table to be divided up or fair game for the other party. So if I have a 'hunting account' on the side then thats gets dragged into the picture.

PS Northern ont. ppl will kmow thet type of account I mentioned

[logicalvelocity]

myrivers,

Financial disclosure must occur to validate the separation agreement in itself. A separation agreement and terms of which can apply to common-law spouses or spouses that are married depending on a situation.

In common-law relationship breakdowns, an eligible spouse may be entitled to spousal support periodic or lump sum. An eligible spouse may also bring forth an unjust enrichment claim. Pension division can also occur so therefore it just makes sense to have asset disclosure.

lv

[tombiosis]

Can financial disclosure be waived?
In my Sep agreement we put that no disclosure took place, but we are both OK with that....of course the lawyer used legalese, but that is essentially what it said!
Man, the more I read on here the more worried I become!
At least my horror story is not as horrific as some!

[logicalvelocity]

tombiosis,

Knowledge is wealth!

Can financial disclosure be waived?

Technically to validate a separation agreement, the law is specific that financial disclosure between the parties must occur. From above:

See the Family Law Act R.S.O. 1990, Chapter F.3 on the issue of "Domestic Contracts"

http://www.e-laws.gov.on.ca/DBLaws/S...f03_e.htm#BK59

Section 56(4)

Setting aside domestic contract

(4) A court may, on application, set aside a domestic contract or a provision in it,

(a) if a party failed to disclose to the other significant assets, or significant debts or other liabilities, existing when the domestic contract was made;

(b) if a party did not understand the nature or consequences of the domestic contract; or

(c) otherwise in accordance with the law of contract. R.S.O. 1990, c. F.3, s. 56 (4).

The key word in section 56(4) of the Family Law Act is the word "may" which is not absolute compared to the term "shall"

Since both parties to the agreement obtained and were represented by independant legal advice; a party may have a difficult time convincing a court to declare a separation agreement void and for it to be set aside especially if a specific clause in the same agreement address's and delegates that no financial disclosure is to occur between the parties.



lv