Financial Disclosures in Alberta: Family Law Meets Finance
July 17, 2024
Family
The entire concept of financial disclosure touches on the heart of family law in Alberta. It’s about truth and transparency among family members and their legal counsels. In the same vein, it is about ensuring fairness as far as financial and property division is concerned. At its very core, financial disclosure complicates, yet simplifies, Alberta’s broader legal framework during separation or divorce proceedings.
Financial disclosures primarily come into play during separations or divorce proceedings. The primary objective for disclosing financial information is to establish a clear picture of the family’s financial situation. This full and frank disclosure is integral to negotiations related to the division of property, spousal support, child support, and the overall fairness of the decision reached.
Understanding Financial Disclosures in Alberta: What Constitutes a Financial Disclosure?
In the context of Alberta Family Law, a financial disclosure essentially refers to the provision of comprehensive information regarding one’s property, income, finances, and liabilities. Typically, it involves producing financial statements, tax returns, property documents, bank statements, and information about all other assets or liabilities. It is a broad and efficient way of gathering information about the family’s financial situation during a separation or divorce proceeding.
But, why is a financial disclosure necessary?
A comprehensive and transparent financial disclosure serves three critical functions in any separation or divorce proceeding in Alberta.
1. It Forms the Basis for Negotiations.
Thorough financial disclosure sets the groundwork for any negotiations related to property division or spousal support. It gives each party a clear and objective picture of the family’s financial situation. This straightforwardness helps prevent any manipulative tactics that may skew the negotiation process in favour of one party.
2. It Promotes Fairness.
By revealing all the low and high points of the family’s financial health, a full financial disclosure ensures that both parties stand on a level and fair playing field. In other words, it prevents any party from taking undue advantage of their spouse due to any undisclosed resources.
3. It Upholds the Law.
Lastly, and more importantly, complete financial disclosure is a legal requirement in Alberta. The Family Law Act requires parties to a dispute over property division, child support, or spousal support to exchange complete financial information before a resolution is reached.
Requirements for Financial Disclosure
The Family Law Rules in Alberta lay out specific requirements and timelines for financial disclosures. All parties are mandated to disclose all their assets, debts, income, and expenditures, regardless of when they were acquired or incurred. This disclosure includes assets held jointly or in the applicant’s own name and assets they effectively control, regardless of whose name they are in.
The financial disclosure in Alberta should not be limited to just the current financial status. Instead, it should offer a complete timeline of the person’s financial history from the date of marriage until the date of separation or divorce. The usual requirements for financial disclosure include:
1. Three years of personal income tax returns and any corresponding notices of assessments or re-assessments.
2. Statements from all financial institutions, including checking accounts, savings accounts, RRSPs, TFSA’s, and any other investments.
3. An outline of any trust from which the person benefits or in which the person has an interest.
4. Statements from any company or partnership in which the person has an interest. A shareholder, director, or officer should be disclosed.
5. Documents revealing the person’s interest in any real estate property.
6. Pension documents.
7. Proof and details of a person’s life, health, and other insurance policies.
The Impact of Non-Compliance with Financial Disclosures in Alberta Family Law
Non-compliance with financial disclosure rules can lead to serious repercussions under the Alberta Family Law Act. Penalties for failing to disclose information can range from fines to imprisonment and an adverse inference being drawn by the Court. The Court may also proceed to make an order without the undisclosed financial information, and this, oftentimes, tends to favour the party who complied with the disclosure requirements.
When one spouse refuses to provide the necessary documents or gives inaccurate or incomplete information, the request for financial disclosure can be followed up with court action. A court application can also be made to compel the spouse to provide the necessary documents or information.
As drastic as these measures may sound, they underscore the importance of financial disclosures in Alberta Family Law. They emphasize that transparency and compliance are not just encouraged but are in fact, legal requirements in divorce and separation proceedings in Alberta.
Conclusion
Overall, financial disclosures comprise a significant aspect of Family Law in Alberta. They play a critical role in facilitating fairness and transparency in divorce or separation proceedings. They also form a crucial part of negotiations related to the division of properties, spousal support, child support, and other financial matters. Thus, it is essential for individuals going through a separation or divorce in Alberta to understand the nuances of financial disclosures.
While this article provides an overview of financial disclosures in Alberta Family Law, it is advisable to consult with a law professional about the specifics of your situation. Legal advice becomes particularly vital considering that each case is unique, and the requirements may vary. With an attorney’s assistance, you can navigate through your financial disclosure with ease and ensure that you provide accurate and complete information. And in so doing, you not only comply with Alberta Family Law but also take a significant step towards ensuring a fair and favourable resolution.
Do not hesitate to contact us for a consultation to discuss your matter. Call us at 403-300-5297 or email us at info@lawsnbeyond.com and we will provide you with the support you need.
