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What Do You Need To Know About Financial Statements?

What Do You Need To Know About Financial Statements?

When couples separate, property division is one of the things that can be agreed upon or claimed in the courts. Oftentimes, parties do not provide correct information in financial statements so that the support obligations can be reduced.

Preparing financial statements can be complex for ex-partners. This blog article will highlight the significance of financial statements in family law proceedings.

What Is A Financial Statement?

Financial statements are sworn statements that contain information about an individual’s income, assets owned, liabilities, expenses, etc. Being dishonest with your sworn financial statements can result in setting down your court order.

Pursuant to Rule 13 of Ontario’s Family Law Rules, circumstances have been prescribed where you need to provide a sworn financial statements. So, if the case contains requests for a child or spousal support, or demands relating to property or debt disputes, financial statements should always be submitted.

However, you are not needed to present a financial statement if the proceeding doesn’t really entail spousal support or property disputes and you are merely requesting child support up to the Table amount.

Alternatively, if both you and the opposing party believe that financial statements are not essential, you may bring a motion to modify child or spousal support without having to submit a financial statement. Lastly, if your claims are limited to a family arbitration, you are unlikely to be required to submit financial accounts.

It is pertinent to note that you only have to fill out form 13 if the issue entails child and spousal support claims and no property claims. Form 13.1 needs to be filled out if you have property division claims along with support claims.

Why Financial Statements Are Essential?

First things first, you need to be honest with your financial statements. If you notice that you forgot to include any asset or important financial detail in your statement or you discover it later, then you are bound to disclose it before the opposing party gets to know about the disclosure.

If you believe that your ex is dishonest in disclosing the financial information, you should request him/her and if they fail to provide the requisite financial information within 7 days, a motion for an order for disclosure of information may be brought against him/her.

Some Tips To Remember Before Getting Started With Your Financial Statement

Here are a few things that you should gather prior to preparing your financial statements.

  • Income Tax Returns
  • Notice of Assessments
  • Bank accounts (if any), chequing details, etc.
  • Housing details (rented or owned)
  • Other significant assets owned including jewellery, furniture, etc.

All these things can help you better prepare your financial statements. Please be advised that every case is individual and can include different details.

Contact The Lawyers At Ayaz Mehdi Professional Corporation

Given the challenges in preparing financial statements, it is highly recommendable to engage the services of a qualified divorce lawyer. For more information, please contact one of our Divorce Lawyers at Ayaz Mehdi Professional Corporation to discuss your case.

Disclaimer:  Kindly note that sending or receiving information through this site does not establish a solicitor-client relationship. Legal matters are fact-specific, and the law is variably changing. The views expressed and the content provided on this blog are general guidelines and cannot substitute for proper legal advice. Schedule your legal consultation by clicking here: Let’s meet!

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