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Financial Disclosure for Domestic Contracts
Generally, there are two times when parties will need to provide financial disclosure to each other: at the start of cohabitation if entering into a cohabitation agreement and/or at the end of a common-law or married relationship.
Financial disclosure is usually provided by each party completing a sworn Statement of Income, Assets and Debts or a sworn Financial Statement. A Financial Statement can be either for support claims, only, or for property and support claims. The Family Law lawyers at McKenzie Lake can assist you in determining which form is appropriate for your particular situation.
Financial disclosure provides a “snapshot” of each parties’ financial circumstances at a specific point in time. If you are planning to cohabit and want to enter into a cohabitation agreement, a “snapshot” of your income, what you own and what you owe is taken so appropriate terms can be drafted into your cohabitation agreement.
A sworn Financial Statement for support claims, only, or for property and support claims, is necessary when dealing with financial issues arising from the breakdown of a relationship. If there are property issues, whether jointly owned, acquired during the marriage or acquired as part of a joint family venture, a Financial Statement for property is completed by each party.
There are several parts to be completed in a Financial Statement for Support, only. Parts 1 and 2 deal with income and expenses. This is simply your budget. What do you earn from all sources of income and what do you spend on a monthly basis. Part 3 is a list of your assets which can include real property, vehicles, bank accounts, investments, pensions and other property. Part 4 is where your debts or other liabilities, including notional taxes, if applicable, are listed. Your net worth is determined by subtracting the total of what you owe from the total of what you own. We have programs that assist with these calculations.
The Financial Statement for Property and Support includes all of the same information as the Financial Statement for Support, only, but requires additional information, including other income earners in the home, property and debts and other liabilities on date of marriage and excluded property. The result, once the total of what you owe is subtracted from the total of what you own, is your net family property. Our team can assist with these calculations.
To complete your Statement of Income, Assets and Debts or Financial Statement, you will be asked to provide documentation to support the amounts set out in your Statement. Our knowledgeable and experienced Family Law team can assist you with collecting and organizing your supporting documentation.
Financial disclosure is a necessary, sometimes difficult, aspect of any domestic contract, be it a cohabitation or separation agreement. If you are thinking of entering into a cohabitation or separation agreement, I invite you to call for an initial consultation to discuss your options.