Financial disclosure is the sharing of income, assets and debts when a BC family separates. Here is what must be disclosed, what documents to gather, and what can happen if information is hidden.
What financial disclosure do you have to provide in a BC family law case?
I have practised law in British Columbia since 1991, and I tell clients early that honest, complete financial disclosure is the foundation of almost every fair family law outcome. Here is how it works in British Columbia.
What financial disclosure means
Financial disclosure is the open sharing of information about your income, assets, debts and expenses. Parenting and support decisions, and the division of family property and debt, all depend on it. Neither a lawyer nor a judge can reach a fair result without knowing what the family actually owns and earns.
Why it matters under BC law
Under the *Family Law Act*, each spouse has a duty to be honest about their financial circumstances. Child support under the Federal Child Support Guidelines depends on the payor's income, and spousal support and property division depend on the full financial picture. If information is missing, any agreement or order may be built on a false foundation.
What you will usually be asked to disclose
- Income: pay stubs, employment contracts, bonuses, commissions, self-employment income and benefits
- Tax records: income tax returns and notices of assessment, usually for the last three years
- Assets: the family home, other real estate, vehicles, bank and investment accounts, RRSPs, TFSAs, and the value of any pensions
- Business interests: corporate financial statements, shareholder records, and records of how the owner is paid
- Debts: mortgages, lines of credit, credit cards, loans and any money owed to the Canada Revenue Agency
- Expenses: regular household costs, and children's expenses such as childcare and medical costs
- Agreements: any marriage agreement, cohabitation agreement or earlier separation agreement
Court forms
In the Supreme Court of British Columbia, a sworn financial statement is generally required where support or property issues are in dispute. In the Provincial Court of British Columbia, a financial statement is filed in the court's own form. A lawyer can tell you which form applies to your case and when it is due. A financial statement is sworn or affirmed, which means you are telling the court the information is true.
Exchanging documents
Even before a case reaches court, you and the other party can exchange documents voluntarily. Many families do this as part of negotiation or mediation, which keeps costs down. If one party will not share, the other can ask the court for an order requiring disclosure. See our page on [mediation](/mediation) for how this works outside court.
What if the other person is not being open?
Warning signs include income that does not match the family's lifestyle, accounts that suddenly appear or disappear, large transfers to relatives, or a business that seems to show unusually low profit. A lawyer can ask for more records, and in some cases the court can order third parties, such as a bank or employer, to produce documents. Read more in our article on [hidden assets in a BC divorce](/blog/hidden-assets-divorce-bc).
Business owners and self-employed parents
Where a parent owns a business, income for child support purposes can be more than the salary shown on a tax return. Courts can look at retained earnings, personal expenses paid by the company, and other benefits. A business valuation may be needed for property division. See our page on [business owner divorce](/business-owner-divorce-bc).
What can happen if information is hidden
Courts treat concealment seriously. A judge can draw conclusions from missing documents, order a party to pay costs, and in some cases set aside an agreement that was based on incomplete disclosure. It is also wise to be careful about your own side: a mistake or omission in your own statement can damage your credibility.
Practical tips
- Start gathering documents as soon as separation is likely, and keep copies.
- Be complete and accurate. Do not guess at values without saying they are estimates.
- Do not delete messages, close accounts or move money without advice.
- Our [separation checklist](/separation-checklist-bc) lists many of the documents to gather.
- We do not give tax advice. Speak with a qualified accountant about the tax effects of any settlement.
- This article is general information about British Columbia law and is not legal advice for your situation.
How Sea to Sky Law can help
Consultations are by phone or secure video, and all meetings are by appointment only. We can help you collect and organise your documents, review the other side's disclosure and explain your options. Call (778) 728-0208 or use our [intake form](/intake).
Usually recent income tax returns and notices of assessment, pay stubs, bank and investment statements, mortgage and loan records, pension information, business records if you own a business, and a list of regular expenses.
Spouses owe each other honesty about their finances, and court rules require financial information where support or property is in dispute. Courts can order disclosure if a party will not share voluntarily.
A lawyer can request more records, and the court can order disclosure, including documents from third parties such as banks. Courts can also order costs and may set aside an agreement made without full disclosure.
Yes. Child support depends on the payor's income, so income information such as tax returns and notices of assessment is normally required. Parents may also have to share updated income each year under an order or agreement.