Financial Disclosure: Imputing Incomes and What This Means

February 26, 2020

Step One, Exchange Financial Disclosure

financial disclosure

Financial disclosure is a very important step in family law

The first major step in any separation is to produce and exchange financial disclosure. As mediators, we are unable to provide accurate assistance with respect to division of property without knowing certain information about each party. A standard notice to disclose requires parties to exchange income tax information, pay stubs, 6 months worth of credit card and bank account information as well as investment accounts, pensions and any other significant assets or liabilities held jointly or separately.

Income Information

Income information is very important as this helps lawyers determine what should be paid in spousal and child support. It is very important to be straight forward with your counsel about all lines of income you may have including dividends. If your partner and their counsel suspect that you are hiding income this can have very negative consequences in the eyes of the Court. If the Court is not satisfied with the income documentation you have provided, they are able to impute your income to reflect a more accurate income based on the facts of your matter.

What If A Party Quits Their Job to Evade Child Support?

The Courts take deliberate underemployment very seriously. Generally, lawyers,  look at three years worth of income tax information to get a clear picture of each party’s income and to gather a snapshot of their standard of living. If the Courts find that a party is intentionally under-employing themselves for the purpose of reducing or evading their support obligations, they may input their income to the reasonable amount. This is generally about that they would be making had they not intentionally reduced their hours or wages. It is important to note that the Courts will not impute income on suspicion alone, there must be evidence in support of same.

Tips for Exchanging Financial Disclosure

Upon retaining a lawyer one of the first things you will be asked to do is to produce your financial documents. It is important to clearly read and understand what your lawyer is requesting. Disclosure items are provided pursuant to a Notice to Disclose Application as this is the information each party is entitled to receive. The easiest way to keep your legal fees low in this stage is to produce the required documents in a reasonable amount of time (usually about 1-month). If you refuse to provide documents or hide assets / liabilities there can be serious legal and financial consequences.

If you have questions about exchanging financial disclosure or your partners income, connect with us.

CATEGORIES

Have you
heard about
our resource
library?

Including helpful information on how to heal from divorce
Have Questions?
Learn with our FAQ's
SEE MORE

Contact Us

We want to hear from you.
After completing this form, a member of our team will reach out to you to schedule an appointment. 
HOURS OF OPERATION
MON-FRI: 8:30AM - 4:30PM
SAT-SUN: CLOSED

210, 333 24 AVE SW,
CALGARY, AB T2S 3E6
COPYRIGHT © 2018 - JONES DIVORCE MEDIATION INC. ALL RIGHTS RESERVED
WEB DESIGN BY
INET MEDIA LTD.
phone-squareenvelope linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram