When Your Ex Refuses to Provide Financial Disclosure: Your Legal Options in Alberta

Financial disclosure is one of the most important aspects of resolving family law matters following separation.

Whether you are negotiating child support, spousal support, or the division of family property, having accurate information about both parties' financial circumstances is essential to reaching a fair resolution.

But what happens when your former spouse refuses to provide financial disclosure?

Fortunately, there are mechanisms available to address non-disclosure and ensure that parties meet their financial obligations.

What Is Financial Disclosure?

Financial disclosure is the process through which parties exchange relevant information about their income, assets, debts, and other financial circumstances.

Depending on the issues in dispute, the documents required may include:

• Income tax returns and Notices of Assessment;
• Recent pay statements and employment records;
• Bank and investment account statements;
• Mortgage statements and other debt records;
• Business financial statements, where applicable; and
• Documents relating to pensions, RRSPs, and other assets.

The nature and extent of the disclosure required will depend on the circumstances of the case.

Why Is Financial Disclosure Important?

Financial disclosure helps ensure that decisions concerning support and property division are based on accurate information.

For example, child support is generally calculated using the payor's Guideline income. Without reliable income information, it may be difficult to determine the appropriate amount of support.

Similarly, parties cannot meaningfully negotiate the division of family property without knowing what assets and liabilities exist and their values.

A fair settlement requires informed decision-making, and informed decision-making requires proper financial disclosure.

What If Your Former Spouse Refuses to Disclose?

A refusal to provide financial information does not mean that your matter must remain unresolved indefinitely.

In Alberta, there are several steps you may take to obtain the necessary information.

1. Request Disclosure: The first step is generally to request the outstanding documents in writing. Your lawyer may provide a detailed list of the required documents and specify a reasonable deadline for their production. This gives the other party an opportunity to comply voluntarily before further legal steps become necessary.
2. Serve a Notice to Disclose: Where voluntary requests are unsuccessful, a formal Notice to Disclose may be appropriate. A Notice to Disclose identifies the financial documents required and invokes the applicable disclosure procedure.
3. Apply for a Disclosure Order: If the other party continues to withhold relevant financial information, you may seek a Court Order compelling disclosure. Depending on the circumstances, the Court may order the other party to produce specified documents within a particular timeframe. Failure to comply with disclosure obligations may also result in further consequences, including costs awards.

Can the Court Impute Income?

Yes. In appropriate circumstances, the Court may impute income to a party who fails to provide sufficient financial information.

Imputing income means that the Court attributes an income amount to a person for the purpose of calculating support, rather than relying solely on the income that person claims to earn.

For example, where a party fails to provide reliable information about their earnings, the Court may determine an appropriate income figure based on the available evidence.

However, income is not automatically imputed whenever disclosure is incomplete. The Court considers the circumstances and the applicable legal requirements.

What If Your Ex Is Self-Employed?

Financial disclosure can be particularly complicated when one party operates a business.

Unlike an employee who receives regular pay statements, a self-employed individual may have business expenses, retained earnings, shareholder benefits, or other financial arrangements that require closer examination.

In some circumstances, the income reported on a personal tax return may not accurately reflect the income available for support purposes. Additional documents, including corporate financial statements and business records, may therefore be necessary.

Can You Settle Without Full Financial Disclosure?

Parties may be eager to settle their matters quickly, particularly where litigation has become expensive or emotionally exhausting. However, entering into a settlement agreement without adequate financial disclosure can create significant risks.

A party may unknowingly accept an unfair settlement or waive an entitlement without understanding the other party's financial circumstances. Depending on the circumstances, inadequate disclosure may also provide grounds to challenge an agreement later.

Before signing a settlement agreement, it is important to understand the financial information being relied upon and the potential consequences of proceeding without complete disclosure.

Final Thoughts

Financial disclosure is not merely a procedural formality. It is an essential part of achieving fair and informed outcomes in family law matters.

If your former spouse is refusing to provide financial documents, you may have legal options to compel disclosure and move your matter forward.

At Stokes Law LLP, we are committed to providing compassionate, strategic, and effective legal representation in family law matters involving family violence, parenting disputes, support claims, and property division. If you have questions about how this decision may affect your situation, we encourage you to contact our office to schedule a consultation. Our team is here to help you understand your options and move forward with confidence.