Separating from a spouse brings emotional and legal challenges—but one of the most critical responsibilities is full financial disclosure after separation. In Ontario, both parties are legally required to share their financial details with each other. This process ensures fairness and transparency when dividing property, calculating spousal support, and resolving other money matters.
Let’s break down what financial disclosure involves, what documents you need, and what happens if someone tries to hide assets.
Why Financial Disclosure After Separation Required?
In Ontario family law, financial disclosure is the foundation for fair settlements. The law requires both spouses to be open and honest about their financial situation. Without it, decisions around division of property, child support, and spousal support could be unfair or even invalid.
Financial disclosure is not optional—it’s required whether you’re going to court, mediating, or negotiating a separation agreement. Failing to disclose your finances properly can delay your case or lead to legal consequences.
Here’s why disclosure matters:
- It helps both parties make informed decisions
- It ensures a fair division of assets and debts
- It protects the integrity of the legal process
- It prevents future legal challenges or appeals
What Documents You Need to Disclose
To comply with financial disclosure requirements, you’ll need to provide a detailed overview of your finances. This is usually done using Form 13 (for support) or Form 13.1 (for property and support) in Ontario family law.
Here are the most common documents you must disclose:
Income Documents:
- Most recent tax returns (last 3 years)
- Notice of Assessment from the CRA
- Recent pay stubs (typically last 3 months)
- Employment contracts or offer letters
- Details of any self-employment or business income
Banking and Investment Records:
- Recent bank account statements
- Investment and RRSP account statements
- TFSA and pension account information
Property and Assets:
- Mortgage statements
- Property assessments
- Car ownership documents
- Valuations for any collectibles or significant items
Debts and Liabilities:
- Credit card statements
- Loan or line of credit statements
- Car loan or mortgage documents
Other Relevant Financial Information:
- Trusts or inheritances
- Stock options or company shares
- Life insurance policies with cash value
It’s important to gather documents that reflect both your current financial situation and the value of your property on the date of separation and date of marriage, especially when dividing assets.
Penalties for Failing to Disclose Assets
Hiding assets or failing to provide full financial disclosure can carry serious consequences under Ontario law. The family court system takes financial honesty seriously and has measures in place to discourage dishonesty.
What Could Happen If You Fail to Disclose:
- Court penalties and fines
- Being ordered to pay the other party’s legal fees
- Your entire financial agreement being set aside
- Imputation of income (court assumes your income is higher than stated)
- Criminal contempt of court charges (in extreme cases)
Even unintentional errors—like forgetting to include an account—can create delays and cause complications. It’s always best to be thorough and proactive.
Real-World Example:
If one spouse hides a bank account and it’s discovered later, the court may award the entire account to the other spouse as a penalty—even if that seems unfair. The legal system does this to discourage dishonesty.
When Do You Have to Provide Financial Disclosure?
You are typically required to exchange financial disclosure early in the separation or divorce process—well before any settlement is finalized or court dates are set.
Key moments when disclosure is required:
- Before signing a separation agreement
- When filing for divorce or support orders through the court
- During mediation or arbitration
- If you’re modifying a past support order
Financial disclosure is not a one-time task. If your situation changes—such as a new job, inheritance, or major expense—you must update your documents and inform the other party.
Do Both Spouses Have to Disclose?
The short answer is yes. Both parties are legally required to provide full and honest financial disclosure, regardless of who initiated the separation. Even if you believe your ex is the higher earner or holds most of the assets, you must still submit your own documents.
This mutual exchange of information ensures:
- A fair negotiation process
- Equal access to financial records
- Proper calculation of child or spousal support
Everyone involved must be transparent to ensure the process is fair and legally sound.
What If Your Ex Refuses to Disclose?
If your former spouse is not cooperating or refuses to provide their financial information, you have legal options to protect yourself and keep the process moving forward.
Steps your lawyer might take:
- Send a formal request for disclosure
- File a court motion to compel financial disclosure
- Request financial penalties or reimbursement of legal fees
- Ask the court to make assumptions about income or assets in your favor
Refusing to disclose is taken seriously by the courts and can result in consequences that favor the spouse who has been open and compliant.
Tips to Stay Organized During Disclosure
Financial disclosure can be time-consuming, especially if you’ve been in a long relationship or have shared accounts. Staying organized will help make the process smoother and avoid delays.
Here are some helpful tips:
- Create a checklist of required documents
- Gather documents early to avoid rushing
- Use folders or digital storage to keep files sorted
- Keep copies of all documents you send or receive
- Work with your lawyer to ensure nothing is missed
If your finances are more complex—such as business ownership or investments—it can be helpful to bring in an accountant or financial advisor.
How Lawyers Ensure Fair Financial Disclosure
A family lawyer’s role during separation isn’t just to negotiate on your behalf—they also help you understand what you need to disclose and ensure the process is done properly. At Nussbaum Family Law, we make sure no detail is overlooked and that your financial disclosure meets Ontario’s legal standards.
How We Support You:
- Help you complete the right forms (Form 13 or 13.1)
- Review your documents for completeness and accuracy
- Communicate with your ex-partner’s lawyer to ensure fair exchange
- Use financial experts if needed (e.g., forensic accountants)
- Protect you from agreeing to an unfair settlement
A good lawyer can also help if the other party is refusing to disclose their finances or if you suspect hidden assets.
Need a Qualified Toronto Divorce Lawyer on Your Side?
Financial disclosure after separation isn’t just paperwork—it’s a key step toward building a fair future. Providing a clear picture of your finances protects your rights and ensures that decisions are made based on facts. Whether you’re heading to court or negotiating privately, complete financial transparency is not only required—it’s in your best interest.
At Nussbaum Family Law, we’re here to guide you every step of the way. If you need help gathering documents, filling out forms, or ensuring your ex is disclosing properly, contact us for a free consultation.
