Blog | March 12, 2014

Financial Disclosure in Family Law

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By Kathryn Jankowski, B.A., CFP, FDS, FCSI

Chances are, if you are reading this post, you, or a close friend or relative, is going through the divorce process.  Overwhelming ranges of emotions and lack of clarity may be prevalent but add to this the need for the accumulation of all your financial documentation …all this can add to the stress of it all.

So what do you need to provide to your lawyer or mediator?  Here’s the list:

1) The last 3 years of tax returns.  Not only that but your Notice of Assessment as well.  Just because you disclose what you thought CRA wanted to know it doesn’t mean your return was assessed as filed.  There may have been some discrepancies as to what CRA has and what you filed.

2) Pay stubs for the most recent pay periods.  If you get paid bi-weekly then a month’s worth of pay stubs will ensure that all your employer-based savings plans and other employment-related fees are all captured.

3) Bank Statements.  Some of the bank statement could be in your name, the name of you and your spouse or in a business name.  All that needs to be disclosed as well.

4) Brokerage Statements.  Or any investment related statements including taxable accounts, Tax-Free Savings Accounts and any registered plans such as Registered Retirement Savings Accounts and Registered Educational Savings Plans.

5) Credit Card Statements.  This would include Visa, Mastercard as well as any lines of credit.  Also, if you have lines of credit are they secured lines or unsecured?

6) Statements from pension plans, profit sharing retirement plans, employee share purchase programs and any other employer-driven savings plans.  If you were employed by the same employer before the marriage you might want to seek out what the value of these savings plans were before the nuptials as well.

7) Real Estate valuations.  I strongly recommend getting an appraiser to do this job.  Not a real estate agent, an appraiser.  This valuation would be for the principle residence as well as any recreational properties or investment properties.

8) Mortgage Statements.  Term.  Amortization. Mortgage rate.

9) Insurance.  Both health insurance, even if it is covered by your employer, and life insurance, whether it be a group benefit through an employer or your own personally owned plan.

10) Business Interests.  If you own your own business all the details of your business must be disclosed such as tax filings (if they are filed separately from your own return) and audited business statements.  Typically, business valuators have to come in to do an assessment as to the value of the business.

I would advise that you get all this together even before you go see a lawyer…to save time and, potentially, some legal fees.  Keep in mind, too, that there are other experts out there that can help with the disclosure documents….such as a Financial Divorce Specialist.

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