Financial disclosure in an Ontario property case

In an Ontario property case, each spouse swears a financial statement in Form 13.1 and then, within 30 days after it is due, serves the documents listed in rule 13(3.3) of the Family Law Rules with a Form 13A certificate. The duty does not end there: statements must be updated before court events and corrected as soon as an error is found.

What has to be disclosed, step by step?

Financial disclosure is the backbone of every equalization claim. Nobody can calculate a payment, negotiate a settlement or argue for an unequal share without the numbers. Our property division page sets out the wider framework. Our guide to how property is divided explains where disclosure fits in the whole process. Under the Family Law Rules, the sequence is:

Financial statement with the claim. The spouse who makes a property claim serves and files a sworn financial statement with the application (r. 13(1)(a)). A property claim, or a claim for exclusive possession of the home, always uses Form 13.1, whether or not support is also claimed (r. 13(1.2)).
Financial statement in response. The other spouse serves and files their own within the time for answering, whether or not they file an answer (r. 13(1)(b)). That is generally 30 days after being served with the application (r. 10(1)).
Supporting documents within 30 days. No later than 30 days after the day a spouse's financial statement is due, that spouse serves the documents listed in rule 13(3.3), unless the court orders otherwise. They are served on the other side, not filed with the court (r. 13(7.1)).
Certificate of Financial Disclosure. Form 13A lists every document provided. It is served with the documents and filed no later than six days before a case conference by the applicant and four days before by the other spouse (r. 13(5.0.2)).
Net family property statements. Before a settlement conference or trial, each spouse serves and files Form 13B (r. 13(14)), and the parties file a comparison in Form 13C no later than six days before the settlement conference (r. 13(14.2)).
Updates and corrections. Statements are refreshed before conferences, motions and trial (r. 13(12)), and any document that turns out to be wrong, incomplete or out of date must be replaced as soon as that is discovered (r. 13(15)).

In Toronto, property claims are heard in the Superior Court of Justice, because the Family Law Act's definition of "court" for property claims leaves out the Ontario Court of Justice. Our page on the Superior Court of Justice family court in Toronto explains where it sits and what to expect. Our Toronto family law guide explains which court handles which kind of case.

The rule 13(3.3) document list

For a claim under Part I of the Family Law Act, rule 13(3.3) sets out thirteen categories. Most are tied to the valuation date, so it helps to know that date first; our page on the valuation date explains how it is chosen.

Para.	What to serve
1	The statement closest to the valuation date for every bank or investment account, pension, RRSP or other savings plan
2	A copy of your application or request for a valuation of your own pension as of the valuation date, if any
3	The Municipal Property Assessment Corporation assessment for any Ontario real property, for the year of the valuation date
4	For any life insurance policy, the statement closest to the valuation date showing face amount, cash surrender value and beneficiary
5	If self-employed or a sole proprietor: three years of business or practice financial statements and personal tax returns
6	If a partner: the partnership agreement, three years of personal tax returns and partnership financial statements
7	If you held an interest in a corporation: documents showing the number and types of shares and other interests
8	If the corporation is privately held: three years of corporate and subsidiary financial statements, plus corporate tax returns for a majority interest
9	If a trust beneficiary: the trust settlement agreement and three years of the trust's financial statements
10	Documents showing the valuation-date value of any other property
11	Documents supporting any exclusion you claim under section 4(2)
12	The statement closest to the valuation date for every mortgage, line of credit, credit card or other debt
13	Any available documents showing what you owned and owed on the date of marriage

Each of these feeds a line in the net family property calculation. Paragraph 13, for example, supports your wedding-day deduction, and paragraph 11 supports any exclusion; our page on calculating net family property shows where each figure goes.

What the Family Law Act itself requires

The Rules sit on top of a statutory duty. Section 8 of the Family Law Act requires each party in an equalization application to serve and file a sworn statement disclosing their property and debts as of the date of marriage, the valuation date and the date of the statement. It must also show the deductions and exclusions claimed, and all property disposed of during the two years before the statement or during the marriage, whichever is shorter. Form 13.1 follows that structure: three columns of dates in Parts 4 to 6, excluded property in Part 7 and disposed-of property in Part 8.

Form 13.1 warns that it must be completed fully and truthfully. It is sworn or affirmed before a commissioner for taking affidavits, a lawyer, a notary or a justice of the peace, so it is evidence, not a draft.

Disclosure when you settle without a court case

Rule 13 applies once a case is started, but the duty to be honest about money does not wait for a court file. In Rick v. Brandsema, the Supreme Court of Canada held that separating spouses negotiating an agreement have a duty to make full and honest disclosure of all relevant financial information. A deliberate failure to disclose can leave the agreement open to being set aside if the result departs substantially from what the law would provide. Ontario's statute says the same thing in its own terms: a court may set aside a domestic contract, or part of it, if a party failed to disclose significant assets, debts or other liabilities existing when it was made (Family Law Act, s. 56(4)(a)). In practice, settlements are usually exchanged on the same documents rule 13 would require.

What changes the answer

A business or professional practice. Paragraphs 5 to 8 of rule 13(3.3) add three years of business records, and valuators often ask for more. Our guide to a spouse's business on separation covers what drives that value.
A pension. Paragraph 2 asks for your request for a family law value statement. Our page on dividing pensions explains how to make that request and what the plan sends back.
Support claimed too. A support claim adds the income documents in rule 13(3.1), and the clerk will not accept a support financial statement without proof of current income and three years of notices of assessment or Canada Revenue Agency income printouts (r. 13(7)). Child support also brings a continuing duty to share income each year; see yearly income disclosure.
Not enough detail. If disclosure is incomplete, rule 13(11) requires a written request first. If the information is not given within seven days, the court may order it at a motion, case conference or settlement conference.
Questioning under oath. A party may be questioned on a financial statement, but only after a written request has been made (r. 13(13)). Questioning otherwise needs consent or a court order under rule 20(4) and (5).
Arbitration. If the only claim relates to a family arbitration, a financial statement is not required unless the court orders it (r. 13(1.4)).

What happens if a spouse does not disclose?

The Rules give the court real tools. If a document required by rule 13 is not served or filed, the court may order it, and when it does, it must also order costs (r. 13(17)). If a party then disobeys an order, rule 1(8) allows the court to make any order needed for a just result, including costs, a penalty, dismissing a claim, striking out a financial statement or other document, refusing to let a party use a document they withheld, refusing that party further orders, or a contempt order sought under rule 31. Failing to follow the Rules, even without an order, can attract most of the same responses (r. 1(8.1)).

For support, the Child Support Guidelines let the court draw an adverse inference and impute income to a parent who fails to provide required income information (ss. 22 and 23). On the property side, hiding debts that existed at the marriage is one of the listed grounds for an unequal division (Family Law Act, s. 5(6)(a)). Chasing disclosure also costs money; our page on what drives the cost of a property case covers disclosure volume alongside the other cost drivers.

A worked example

For example, imagine a hypothetical couple, Priya and Dev. Priya serves an application with a property claim on March 2 and serves her Form 13.1 with it. Dev's answer and financial statement are due 30 days after service, which is April 1, counting from the day after service under rule 3(1). Priya's rule 13(3.3) documents are due 30 days after her own statement was due, also April 1. Dev's documents are due 30 days after his statement was due, which is May 1. If any of those days falls when court offices are closed, the deadline moves to the next day they are open (r. 3(3)).

A case conference is then set for mid-June. By then both March and April statements are more than 60 days old, so each spouse must serve and file either a new statement or an affidavit confirming or updating the old one (r. 13(12) and (12.1)). Priya files hers, and her Form 13A, at least six days before the conference; Dev files his at least four days before. Because periods under seven days skip weekends and court holidays (r. 3(2)), six days before a conference is more than a calendar week in practice.

Common mistakes with financial disclosure

Treating the financial statement as an estimate. It is sworn evidence. Guesses that turn out wrong damage credibility and may need a corrected statement under rule 13(15).
Leaving sections blank. Form 13.1 says to print "NONE" in any section of Parts 4 to 9 that does not apply. A blank invites questions.
Forgetting the wedding-day column. The deduction for what you brought into the marriage depends on documents. Without them, the onus in section 4(3) of the Act works against you.
Filing tax returns in the court record. Tax returns and the other rule 13 documents are served, not filed, unless the court orders otherwise (r. 13(7.1)).
Letting statements go stale. Missing the 60, 30 or 40 day update thresholds before a conference, motion or trial (r. 13(12)) can delay the event and lead to costs.
Disclosing in pieces. Drip-feeding documents after each request builds costs on both sides. Serve the full list once, then update it with a new Form 13A.

What to do this week

Settle on the date you believe is your valuation date and write down why.
Download the statement closest to that date for every account, investment, RRSP, TFSA, pension, credit card, loan and mortgage in your name.
Find your three most recent notices of assessment and your tax returns with all schedules.
Look for anything that shows what you owned and owed on your wedding day.
If you have a pension, request its family law value now, since it takes time to arrive.
Start a simple index: document name, date and date provided. It becomes your Form 13A.

Frequently asked questions

Do I have to disclose if we are settling without court?

The court forms only apply once a case starts, but the duty of full and honest disclosure applies to negotiations too. An agreement made without proper disclosure is at risk of being set aside under section 56(4)(a) of the Family Law Act.

Are my tax returns filed in the public court file?

No. Income tax returns and the other rule 13 documents are served on the other party but not filed in the continuing record unless the court orders otherwise (r. 13(7.1)).

Which form do I use, Form 13 or Form 13.1?

Use Form 13.1 whenever there is a property claim or a claim for exclusive possession of the home, even if support is also claimed. Form 13 is for support claims without a property claim (r. 13(1.1) and (1.2)).

What if I cannot get a document in 30 days?

Serve what you have, ask the institution in writing, and keep proof of the request. When the missing document arrives, serve it right away (r. 13(16)) and update your Form 13A.

Do I have to list property I sold or gave away?

Yes. Section 8 of the Act and Part 8 of Form 13.1 require property disposed of during the two years before the statement or during the marriage, whichever period is shorter.

Can I ask for an affidavit of documents as well?

Rule 19 lets a party ask for a sworn list of all relevant documents, but it does not apply to documents already required under rule 13 (r. 19(1.1)(b)). Use rule 13(11) first for financial records.

What financial disclosure is required in an Ontario property case?