As a lawyer practicing exclusively in the area of family law over for the past 6+ years I consistently have new clients tell me the same goals - they want their matter resolved efficiently, fairly, and without the need for court proceedings. It is for this reason that I am often confused at how gathering and providing proper financial disclosure seems to be such a problem for clients when the task is essential to achieving these goals.
Accurate, timely financial disclosure is the foundation for resolving financial issues in family law. Period. The recently much publicized Bill 133 underlines this point by proposing that child support payors make mandatory annual financial disclosure to the support recipient. Nonetheless, many clients fail to provide relevant documents to their counsel in a timely manner and instead simply ask for an opinion without providing the necessary information on which to base that opinion. Could you imagine if the medical profession operated this way?
Patient: Doctor, I'm having chest pains. I'm worried I could be having heart problems. What should we do?
Doctor: Well do you mind if I look at your medical records and run some tests so I can attempt to diagnose the nature and causes of your pain?
Patient: I don't really feel like going to all that trouble. You need to make a diagnosis immediately. Open heart surgery or should I take a Tums?
Doctor: Well you did say it hurt quite a bit. Open your shirt so we can cut you open...
Of course such an approach would be ridiculous but an analogous situation occurs when a lawyer is asked to give an opinion on a case without a proper review of the parties' financial documents.
When you hire a family lawyer to provide you with advice on your financial issues (child or spousal support, division of property, etc.) you are hiring a trained professional to provide you with advice based on your financial circumstances and applicable family law legislation. The best way to ensure that advice is accurate and provided in a timely manner is to provide your lawyer with details of you and your former spouse's actual relevant financial circumstances as soon as possible. Just as a doctor needs to review your medical records and run tests before providing advice and treatment, your lawyer needs to know exactly what the facts are as stated in your financial documentation (Income Tax Returns, bank statements, property valuations, etc.). Only when your lawyer has the necessary information can he or she provide a meaningful opinion.
Another reason for providing proper disclosure is to ensure the process is fair to all parties. Newsflash: Courts are not particularly supportive of parties who trick the other side into settling for less by withholding or concealing relevant information. If your former spouse plans to waive any entitlement to spousal support, he or she (and his or her counsel) needs to be fully informed of your financial circumstances. The Ontario Family Law Act is quite clear that a Court can set aside a contract or a provision in it if there is a failure to disclose significant assets or liabilities at the time a domestic contract is made. Most clients want a final resolution to their dispute without having to constantly worry at night about the other side reinstituting proceedings due to a previously undiscovered error or omission in financial disclosure. The easiest way to avoid such worries is to ensure that the other side is provided proper disclosure so any errors or omissions will not be caused by your failure to disclose.
But what if the other side won't do their part and provide reciprocal disclosure? Well then, you'll need a Court order to compel them to do so. And this is exactly what your ex-spouse's lawyer will be telling them if you are not providing disclosure on a timely basis. Your failure to provide accurate and timely financial disclosure may leave the impression in your ex-spouse's mind that you have something to hide which will not encourage settlement.
So to paraphrase the immortal Harvey Keitel in the film Pulp Fiction, "Pretty please, with sugar on top, get your financial documents."
This blog post is provided for educational purposes only. It is not intended to be advertising, and it is not intended to be and should not be relied upon as a source of legal advice. You should not rely upon the content without first seeking the advice of legal counsel. The author of this blog post and his employer, Mckenzie Lake Lawyers LLP, expressly disclaims all liability in respect to actions taken, or not taken, based upon the content of this blog post.
