When going through a separation, understanding your financial disclosure obligations is crucial for ensuring a fair division of property, debts, and determining appropriate support payments.
Upon separation from your spouse, you are entitled to financial disclosure documents in order to determine what support may be payable (either child support, spousal support, or partner support) as well as what an appropriate division of assets and debt would be.
The Alberta Rules of Court and the Alberta Child Support Guidelines both require parties to provide financial information to each other on an annual basis during their period of separation. Full financial disclosure generally includes at least the following information:
- Income tax returns for the last three years;
- Notices of assessment and/or reassessment for the previous three years;
- If an employee, a copy of each of the three most recent statements of earnings showing the total income paid in the year to date, or if your employer does not provide such statements, a letter from your employer setting out that financial information;
- Statement of income from employment insurance, social assistance, a pension, worker’s compensation, disability payments, or dividends;
- If you are a student, a statement of the total amount of student funding received in the current academic year;
- If you are self-employed in an unincorporated business, copies of every cheque issued to you in the last six weeks from any corporation or business in which you have an interest; financial statements for the three most recent taxation years; and a statement of all salaries, wages, management fees or other payment or benefits paid for the three most recent taxation years;
- If a partner in a partnership, confirmation of income, draws, and capital in the partnership for the three most recent taxation years;
- If you have 1% or more interest in a privately held corporation, the financial statements for the three most recent taxation years, a financial statement showing a breakdown of all salaries, wages, management fees or other payments or benefits for the three most recent taxation years, and a record showing shareholder’s loan transactions for the past 12 months;
- Where child support is an issue, a detailed list of any special or extraordinary child support expenses claimed;
- If a beneficiary under a trust, a copy of the trust settlement agreement and copies of the trust’s three most recent financial statements;
- Copies of all bank account statements for the most recent six months;
- Copies of credit card statements for the most recent six months;
- A monthly budget of expenses if you are seeking spousal support;
- A sworn itemized list of your income, assets, and liabilities (i.e. property, vehicles, bank accounts, loans, debts, etc.);
- Copies of the most recent statement for all RRSPs, pensions, term deposit certificates, GICs, stock accounts and other investments;
- A list of any exemptions claimed.
The Supreme Court of Canada in Rick v. Brandsema has indicated that the failure to exchange full and complete financial disclosure may affect the validity of any separation agreement reached between the parties. If you have requested but not received a full financial disclosure from your spouse, there are legal steps that you may take to ensure that you get the financial information that you need in order to make a fair and equitable settlement.
Need Help with Financial Disclosure in Your Separation?
Navigating separation and the complex legalities that come with it, such as financial disclosure requirements, spousal support, and child support, can be daunting. Our lawyers at Kirk Montoute Dawson LLP understand Alberta’s legal requirements and can help ensure you provide and receive complete financial information while protecting your interests. Contact us today to discuss your case and get the legal guidance you need for a fair agreement.