Financial Disclosure in a BC Separation: What You Must Share and When

Whether you are negotiating a separation agreement or heading to court, nothing moves until both sides know the numbers. Support depends on income, and dividing property depends on knowing what exists.

BC law makes disclosure a legal duty, with specific forms, documents and deadlines. Getting it right early saves time, and getting it wrong can cost you later.

The basic duty: full and true information

Section 5 of BC's Family Law Act says that a party to a family law dispute must give the other party "full and true information" for the purpose of resolving the dispute. The duty applies whether you are negotiating at a kitchen table, in mediation or in court. Information you receive this way may be used only as necessary to resolve the dispute.

Disclosure is often where a separation slows down. Support cannot be calculated without income figures, and property cannot be divided until both sides know what exists and what it is worth. Our first-steps checklist for separating in BC suggests gathering records early, and this article explains what the rules actually require.

In BC Supreme Court: Form F8 and Rule 5-1

If your case is in the Supreme Court, Rule 5-1 of the Supreme Court Family Rules sets out who must file and serve a Form F8 financial statement and which parts of it apply:

• Child support: a party who must provide income information under the child support guidelines files Part 1 of Form F8 with their income documents. More parts are needed in some cases, such as claims for special or extraordinary expenses (Part 4) or undue hardship.
• Spousal support: a party claiming spousal support, or facing a claim, files Parts 1, 2 and 3.
• Property and debt division: each party to a claim under Part 5 of the Family Law Act files Part 3, with the most recent property assessment notice for any real property they own or have an interest in.

The income documents

The rule defines "applicable income documents". They include:

• personal income tax returns, and notices of assessment or reassessment, for the three most recent tax years;
• if you are employed, your most recent statement of earnings showing year-to-date pay (or an employer's letter);
• if you are self-employed, the financial statements of your business for the three most recent tax years and a breakdown of payments to people you do not deal with at arm's length;
• if you control a corporation, its financial statements for three years and similar non-arm's-length payment information;
• statements for employment insurance, workers' compensation or income assistance, if you receive them; and
• trust documents if you are a beneficiary of a trust.

The deadlines

Under Rule 5-1(11), you must file and serve your Form F8 and documents within 30 days after being served with the document making the claim, or 60 days if you are responding to the other party's claim and live outside Canada and the United States, unless the court orders otherwise. If a statement lacks information, the other party can demand particulars, and the court can make orders if they are not provided within 7 days.

Disclosure is ongoing. If a material change makes your information inaccurate, you must promptly serve a correction or a revised statement. If your Form F8 was served more than 91 days before a trial or hearing, you must serve an updated one at least 28 days but not more than 63 days before it starts.

Business interests

If you disclose a business or corporate interest, the other party can ask in writing for documents needed to value it or to work out your income, and you have 21 days to say when and where they can be inspected. If that does not work, the request can be made to the business itself.

In Provincial Court: Form 4

In the Provincial Court, financial statements are made in Form 4. Under the Provincial Court Family Rules, a party applying for an order about child support (where they must provide income information) or spousal support files a Form 4 with the application. A party replying to an application about child or spousal support files a Form 4 with the reply, within 30 days after being served. The Provincial Court Family Rules do not cover property division under Part 5 of the Family Law Act, other than companion animals, so detailed property disclosure belongs to a Supreme Court case.

What happens if someone does not disclose

The Family Law Act gives the court real tools. Under section 212, a court can order disclosure at any stage. Under section 213, if a person does not disclose as required, or gives incomplete, false or misleading information, the court can:

• draw an adverse inference, including attributing income to that person;
• order them to pay the other party's expenses caused by the non-disclosure;
• order them to pay up to $5,000 to a party, spouse or child affected, or a fine of up to $5,000; and
• make any other order it considers appropriate.

The Supreme Court Family Rules add further options, such as dismissing a claim or striking out a response.

Non-disclosure can also undo a settlement. Under section 93 of the Family Law Act, the Supreme Court can set aside or replace all or part of a written property agreement if a spouse failed to disclose significant property or debts, or other information relevant to the negotiation. Our article on when a separation agreement can be set aside explains this further.

Practical tips for getting it right

• Start early. Request missing tax documents from the Canada Revenue Agency and pension statements before you need them.
• Be complete rather than selective. Leaving something out tends to cost more later than disclosing it now.
• Keep a log of what you have sent and received, with dates.
• Ask for what is missing in writing, and keep copies.

Need to prepare or chase financial disclosure? Start with a clear list

Our family lawyers can tell you which documents your case requires, help you prepare a complete financial statement, and take steps when the other side's disclosure is late or incomplete.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.