Tag Archive: Paul Steckley

  1. Family Law Disclosure

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    PaulSteckley

    By Paul Steckley

    I’m reminded of a situation that really brings home the importance of being honest and frank in your disclosure in a family law matter, whether it in a  litigation setting or collaborative, which I’d like to share.  It involves a divorcing couple, where both the husband and wife felt they were each owed an equalization payment from the other.  The main area of disagreement between them was that the wife had been operating a business prior to separation that she claimed had stopped operating and was essentially worthless at the time that the parties separated.  She even went so far as to hire a certified business valuator who completed a report indicating that the business was essentially worthless as it was not operating and had no assets on the valuation date.  The husband knew that he business had stopped operating but disagreed that the business was worthless as he knew that some of the business’s assets were unaccounted for.  The matter proceeded to trial, where it was revealed that the wife had in fact been less than truthful.  She was forced to admit that not only had she hidden some assets from the business but that at least one of the assets was fairly valuable and had been sold recently.  She had even gone so far as to hide this information from her own lawyer.

     

    This shocking revelation basically lost her the trial, as the judge found that she lacked credibility and that her evidence, including the evidence of the business valuator, had to be ignored completely.  This even included her evidence that proceeds of the sale of the asset were subject to taxation and the payment of legitimate debts.  Because of her lack of credibility, the judge ignored everything expect for the gross value of the sale.  The end result was that the wife had to make an equalization payment to the husband, a significant swing from the result she had attempted to manufacture, and probably more than what would have happened had she been honest in the first place.  Had the true value of these assets been disclosed earlier, the business valuator might have been able to minimize the effect by factoring in taxes and various costs associated with the assets, reducing their value and perhaps eliminating the need for the equalization payment.  It is easy to see why she was lured to the idea of hiding assets, thinking that it would give her an advantage in the litigation.  However, in this case the lack of full and frank disclosure did not pay the dividends she was expecting.  And not including her lawyer in on this subterfuge meant that she denied herself the benefit of guidance from her lawyer that may have made her realize that her attempts would ultimately backfire.  As well, a costly trial was inevitable since the husband knew she was being deceitful.  It is always best to bring forth all the information you have, and provide it to your spouse, your lawyer, and your financial professional so that it can be dealt with.  In the end it will be less costly and will likely lead to a settlement much earlier in the process.


    Paul Steckley, B.A. (Hons), LL.B.
    102-2680 Matheson Boulevard East
    Mississauga, ON, L4W 0A5
    Profession: Family Law Lawyer
    Tel: 905-487-5467
    Fax: 905-487-5465
    paul@paulsteckley.com
    www.paulsteckley.com
  2. Divorce ~ The Importance of Disclosure

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    PaulSteckley

    By Paul K. Steckley

    The Collaborative Process is unique in that fostering a strong working relationship between the separating couple is crucial to a successful resolution. The more traditional forms for resolution (litigation, negotiations, arbitration, and sometimes even mediation) more often than not involve people that dislike, if not detest, each other and can’t work together effectively (else they would have chosen a different resolution process). People that choose the Collaborative Process at least have a desire to attempt to set aside their differences and work towards a common goal, and they specifically choose to do so in a way that is respectful and, hopefully, cordial. The Process requires spouses to work closely together, on a fairly frequent basis, and this requires a relationship that is built on mutual respect.

    The key to creating an atmosphere that will enhance such a relationship is building trust between the spouses: trust that may have become eroded during the separation. One way to build such trust is by ensuring that each party comes to the table with all of their cards laid out in plain sight. If someone suspects that their former partner is holding something back, they naturally become distrustful and are unlikely to actively listen to the needs of the other person, which is a crucial step in the Collaborative Process. If one spouse suspects that the other is hiding assets, for instance, they are more likely to be reluctant to trust that spouse’s claims that the children are of utmost importance to them, for example. Distrust can seep into other areas of discussion and derail the entire Process.

    As such, it is vitally important for the spouses to provide full disclosure of all relevant information during the Process. This information includes full financial disclosure and all other information that is relevant and important to understanding the issues at hand and resolving them. Once their other spouse sees that nothing is being hid, their natural defensive posture softens and then they can then truly embrace all the aspects of the Process. Full disclosure fosters trust which creates a stronger working relationship which leads to a better Process that has a higher chance of being successful.

    In addition, full disclosure can ensure that the final Separation Agreement, in the document that the spouses and their professionals have worked so hard to complete, stands the test of time. Spouses that have trusted each other throughout the process are more likely to stand by their Agreement, because they won’t have in the back of their minds that nagging suspicion that they were hoodwinked in some manner by their former partner that leads them to question the validity of the Agreement. And, if, for whatever reason, one does decide to question the Agreement, it has a greater chance of being found by a Court to be enforceable if full disclosure was made throughout the process. It is truly a wasteful exercise to engage professionals and spend a great deal of time and money to create a Separation Agreement that is ultimately set aside simply because full disclosure wasn’t made during the collaborative Process. Separation is a difficult emotional journey for anyone to undertake, and while the Collaborative Process can soften that journey somewhat, it’s not something that anyone wishes to relive years from now. Full disclosure can make the process work efficiently and effectively now, and also provide comfort and stability for the future.

    Paul Steckley, B.A. (Hons), LL.B.
    102-2680 Matheson Boulevard East
    Mississauga, ON, L4W 0A5

    Profession: Family Law Lawyer
    Tel: 905-487-5467
    Fax: 905-487-5465
    paul@paulsteckley.com
    www.paulsteckley.com