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Family Law Rules – Rule 13: Financial Disclosure

Angela Princewill

November 14, 2015

RULE 13:  FINANCIAL DISCLOSURE

FINANCIAL STATEMENT WITH APPLICATION, ANSWER OR MOTION

13. (1) If an application, answer or motion contains a claim for support, a property claim, or a claim for exclusive possession of the matrimonial home and its contents,

(a) the party making the claim shall serve and file a financial statement (Form 13 or 13.1) with the document that contains the claim; and

(b) the party against whom the claim is made shall serve and file a financial statement within the time for serving and filing an answer, reply or affidavit or other document responding to the motion, whether the party is serving an answer, reply or affidavit or other document responding to the motion or not.  O. Reg. 92/03, s. 1 (1); O. Reg. 151/08, s. 2 (1, 2).

FORM 13 FOR SUPPORT CLAIM WITHOUT PROPERTY CLAIM

(1.1) If the application, answer or motion contains a claim for support but does not contain a property claim or a claim for exclusive possession of the matrimonial home and its contents, the financial statement used by the parties under these rules shall be in Form 13.  O. Reg. 92/03, s. 1 (1); O. Reg. 151/08, s. 2 (3).

FORM 13.1 FOR PROPERTY CLAIM WITH OR WITHOUT SUPPORT CLAIM

(1.2) If the application, answer or motion contains a property claim or a claim for exclusive possession of the matrimonial home and its contents, the financial statement used by the parties under these rules shall be in Form 13.1, whether a claim for support is also included or not.  O. Reg. 92/03, s. 1 (1); O. Reg. 151/08, s. 2 (3).

EXCEPTION, CERTAIN SUPPORT CLAIMS

(1.3) If the only claim for support contained in the application, answer or motion is a claim for child support in the amount specified in the table of the applicable child support guidelines, the party making the claim is not required to file a financial statement, unless the application, answer or motion also contains a property claim or a claim for exclusive possession of the matrimonial home and its contents.  O. Reg. 92/03, s. 1 (1); O. Reg. 151/08, s. 2 (3, 4).

EXCEPTION, FAMILY ARBITRATION CLAIM

(1.4) If the only claim contained in the application, answer or motion is a claim under the Arbitration Act, 1991 or the Family Law Actrelating to a family arbitration, family arbitration agreement or family arbitration award, the party making the claim is not required to file a financial statement, unless the court orders otherwise. O. Reg. 388/12, s. 5.

CLAIM FOR PAYMENT ORDER UNDER CFSA

(2) If an application, answer or notice of motion contains a claim for a payment order under section 60 of the Child and Family Services Act, clause (1) (a) does not apply to the children’s aid society but clause (1) (b) applies to the party against whom the claim is made.  O. Reg. 114/99, r. 13 (2); O. Reg. 92/03, s. 1 (2).

FINANCIAL STATEMENTS IN CUSTODY AND ACCESS CASES

(3) If an application, answer or motion contains a claim for custody of or access to a child and this rule does not otherwise require the parties to serve and file financial statements, the court may order each party to serve and file a financial statement in Form 13 within the time decided by the court.  O. Reg. 92/03, s. 1 (3); O. Reg. 151/08, s. 2 (5).

ADDITIONAL REQUIRED FINANCIAL DISCLOSURE, SUPPORT CLAIM

(3.1) A party who is required under subrules (1) to (3) to serve and file a financial statement in relation to a claim for support shall, before the deadline set out in subrule (3.2), serve with the financial statement the following information, unless the court orders otherwise:

1. The income and financial information referred to in subsection 21 (1) of the child support guidelines.

2. If the party became unemployed within the last three years,

i. a complete copy of the party’s Record of Employment, or other evidence of termination, and

ii. a statement of any benefits or income that the party is still entitled to receive from his or her former employer despite or as a result of the termination.

3. In the case of a claim for the support of a child, proof of the amount of any special or extraordinary expenses, within the meaning of section 7 of the child support guidelines. O. Reg. 69/15, s. 3 (2).

TIMING OF REQUIREMENT

(3.2) The party shall serve the information referred to in subrule (3.1),

(a) with the financial statement, if the application, answer or motion contains a claim for support but does not contain a property claim; or

(b) with the documents required to be served under subrule (3.3) or (3.4), as the case may be, if the application, answer or motion contains a property claim. O. Reg. 69/15, s. 3 (2).

ADDITIONAL REQUIRED FINANCIAL DISCLOSURE, CLAIM UNDER PART I OF THEFAMILY LAW ACT

(3.3) A party who is required under subrules (1) to (3) to serve and file a financial statement in relation to a claim under Part I of theFamily Law Act shall, no later than 30 days after the day by which the financial statement is required to be served, serve on the other party the following information, unless the court orders otherwise:

1. The statement issued closest to the valuation date for each bank account or other account in a financial institution, pension, registered retirement or other savings plan, and any other savings or investments in which the party had an interest on that date.

2. A copy of an application or request made by the party to obtain a valuation of his or her own pension benefits, deferred pension or pension, as the case may be, if any, as of the valuation date.

3. A copy of the Municipal Property Assessment Corporation’s assessment of any real property in Ontario in which the party had a right or interest on the valuation date, for the year in which that date occurred.

4. If the party owned a life insurance policy on the valuation date, the statement issued closest to that date showing the face amount and cash surrender value, if any, of the policy, and the named beneficiary.

5. If the party had an interest in a sole proprietorship or was self-employed on the valuation date, for each of the three years preceding that date,

i. the financial statements of the party’s business or professional practice, other than a partnership, and

ii. a copy of every personal income tax return filed by the party, including any materials that were filed with the return.

6. If the party was a partner in a partnership on the valuation date, a copy of the partnership agreement and, for each of the three years preceding the valuation date,

i. a copy of every personal income tax return filed by the party, including any materials that were filed with the return, and

ii. the financial statements of the partnership.

7. If the party had an interest in a corporation on the valuation date, documentation showing the number and types of shares of the corporation and any other interests in the corporation that were owned by the party on that date.

8. If the corporation in which a party had an interest was privately held, for each of the three years preceding the valuation date,

i. the financial statements for the corporation and its subsidiaries, and

ii. if the interest was a majority interest, a copy of every income tax return filed by the corporation.

9. If the party was a beneficiary under a trust on the valuation date, a copy of the trust settlement agreement and the trust’s financial statements for each of the three years preceding that date.

10. Documentation showing the value, on the valuation date, of any property not referred to in paragraphs 1 to 9 in which the party had an interest on that date.

11. Documentation that supports a claim, if any, for an exclusion under subsection 4 (2) of the Family Law Act.

12. The statements or invoices issued closest to the valuation date in relation to any mortgage, line of credit, credit card balance or other debt owed by the party on that date.

13. Any available documentation showing the value, on the date of marriage, of property that the party owned or in which he or she had an interest on that date, and the amount of any debts owed by the party on that date. O. Reg. 69/15, s. 3 (2).

ADDITIONAL REQUIRED FINANCIAL DISCLOSURE, OTHER PROPERTY CLAIMS

(3.4) A party who is required under subrules (1) to (3) to serve and file a financial statement in relation to a property claim other than a claim under Part I of the Family Law Act shall, no later than 30 days after the day by which the financial statement is required to be served, serve on the other party any information necessary to support the claim, unless the court orders otherwise. O. Reg. 69/15, s. 3 (2).

FINANCIAL STATEMENT WITH MOTION TO CHANGE TEMPORARY SUPPORT ORDER

(4) Subject to subrule (1.3), the following rules respecting financial statements apply if a motion contains a request for a change in a temporary support order:

1. The party making the motion shall serve and file a financial statement (Form 13 or 13.1) with the notice of motion.

2. The party responding to the motion shall serve and file a financial statement as soon as possible after being served with the notice of motion, but in any event no later than two days before the motion date. Any affidavit in response to the motion shall be served and filed at the same time as the financial statement.  O. Reg. 151/08, s. 2 (6); O. Reg. 69/15, s. 3 (3).

EXCEPTION — BY CONSENT

(4.1) Parties to a consent motion to change a temporary support order do not need to serve and file financial statements if they file a consent agreeing not to serve and file them.  O. Reg. 151/08, s. 2 (6).

FINANCIAL STATEMENT WITH MOTION TO CHANGE FINAL SUPPORT ORDER OR SUPPORT AGREEMENT

(4.2) Subject to subrule (1.3), the following rules respecting financial statements apply if a motion is made under rule 15 requesting a change to a final support order or a support agreement:

1. The party making the motion shall serve and file a financial statement (Form 13 or 13.1) with the motion to change (Form 15).

2. The party responding to the motion shall serve and file a financial statement within the time for serving and filing the response to motion to change (Form 15B) or returning the consent motion to change (Form 15C) to the party making the motion, as set out in subrule 15 (10). Any response to motion to change (Form 15B) shall be served and filed at the same time as the financial statement.

3. Parties who bring the motion by filing a consent motion to change (Form 15C) shall each file a financial statement with the form, unless they indicate in the form that they agree not to do so.

4. Parties who bring the motion by filing a consent motion to change child support (Form 15D) do not need to serve or file financial statements.  O. Reg. 151/08, s. 2 (6); O. Reg. 69/15, s. 3 (4).

FINANCIAL STATEMENT REQUIRED BY RESPONSE

(4.3) Subrules (4) and (4.1), or subrule (4.2), as the case may be, apply with necessary changes if a party makes a motion to change an order or agreement for which the party is not required by this rule to file a financial statement, and the party responding to the motion requests a change to a support order or support agreement.  O. Reg. 151/08, s. 2 (6); O. Reg. 142/14, s. 6; O. Reg. 69/15, s. 3 (5).

NO FINANCIAL STATEMENT FROM ASSIGNEE

(5) The assignee of a support order is not required to serve and file a financial statement under subrule (4) or (4.2).  O. Reg. 114/99, r. 13 (5); O. Reg. 151/08, s. 2 (7).

ADDITIONAL REQUIRED FINANCIAL DISCLOSURE, MOTION TO CHANGE SUPPORT

(5.0.1) A party who is required under subrules (4) to (4.3) to serve and file a financial statement shall serve with the financial statement the following information, unless the court orders otherwise:

1. The documents referred to in subrule (3.1).

2. A current statement of arrears from the Family Responsibility Office.

3. One of the following for each year for which the party is seeking to change or cancel arrears, as proof of the party’s income:

i. The party’s income tax return and,

A. the party’s notice of assessment and, if any, notice of reassessment, or

B. if a notice of assessment and a notice of reassessment are unavailable for the year, a copy of the Income and Deductions printout provided by the Canada Revenue Agency for the party.

ii. If the party is not required to and has chosen not to file an income tax return because of the Indian Act (Canada), some other proof of income. O. Reg. 69/15, s. 3 (6).

REQUIREMENT TO CERTIFY FINANCIAL DISCLOSURE

(5.0.2) A party who is required to serve documents under subrule (3.1), (3.3), (3.4) or (5.0.1) shall confirm service by,

(a) serving a certificate of financial disclosure (Form 13A) together with the documents; and

(b) filing the certificate no later than,

(i) seven days before a case conference, in the case of the applicant or the party making the motion, as the case may be, and

(ii) four days before the case conference, in the case of the other party. O. Reg. 69/15, s. 3 (6).

FINANCIAL STATEMENT WITH MOTION TO REFRAIN

(5.1) A payor who makes a motion to require the Director of the Family Responsibility Office to refrain from suspending the payor’s driver’s licence shall, in accordance with subsection 35 (7) of the Family Responsibility and Support Arrears Enforcement Act, 1996,serve and file with the notice of motion,

(a) a financial statement (Form 13 or 13.1) or a financial statement incorporated as Form 4 in Ontario Regulation 167/97 (General) made under that Act; and

(b) the proof of income specified in section 15 of the regulation referred to in clause (a).  O. Reg. 76/06, s. 5 (3).

(6) Revoked: O. Reg. 69/15, s. 3 (7).

REQUIREMENTS FOR FILING

(7) The clerk shall not accept the financial statement of a party making or responding to a claim for support unless the following are attached to the form:

1. Proof of the party’s current income.

2. One of the following, as proof of the party’s income for the three previous years:

i. For each of the three previous taxation years,

A. the party’s notice of assessment and, if any, notice of reassessment, or

B. if a notice of assessment and a notice of reassessment are unavailable for a taxation year, a copy of the Income and Deductions printout provided by the Canada Revenue Agency for the party for the taxation year.

ii. If the party swears or affirms a statement in the form that he or she is not required to and has chosen not to file an income tax return because of the Indian Act (Canada), some other proof of income for the three previous years.  O. Reg. 52/10, s. 1; O. Reg. 69/15, s. 3 (8).

EXCEPTION

(7.0.1) Subrule (7) does not apply to a financial statement filed under subrule (5.1).  O. Reg. 76/06, s. 5 (4).

DOCUMENTS THAT ARE NOT REQUIRED TO BE FILED

(7.1) The following documents are not required to be filed in the continuing record unless the court orders otherwise:

1. Income tax returns, except in the case of a filing under subrule (5.1).

2. Any other document referred to in subrule (3.1), (3.3), (3.4) or (5.0.1), unless these rules provide otherwise. O. Reg. 69/15, s. 3 (9).

NO FINANCIAL DISCLOSURE BY CONSENT – SPOUSAL SUPPORT IN DIVORCE

(8) Parties to a claim for spousal support under the Divorce Act (Canada) do not need to serve and file financial statements or provide additional financial disclosure under this rule if they file a consent,

(a) agreeing to not serve and file financial statements or provide additional financial disclosure under this rule; or

(b) agreeing to a specified amount of support, or to no support. O. Reg. 69/15, s. 3 (9).

(9) Revoked:  O. Reg. 151/08, s. 2 (8).

DOCUMENTS NOT TO BE FILED WITHOUT FINANCIAL STATEMENT

(10) The clerk shall not accept a document for filing without a financial statement if these rules require the document to be filed with a financial statement.  O. Reg. 151/08, s. 2 (9).

INSUFFICIENT FINANCIAL INFORMATION

(11) If a party believes that the financial disclosure provided by another party under this rule, whether in a financial statement or otherwise, does not provide enough information for a full understanding of the other party’s financial circumstances,

(a) the party shall ask the other party to give the necessary additional information; and

(b) if the other party does not give it within seven days, the court may, on motion, order the other party to give the information or to serve and file a new financial statement. O. Reg. 114/99, r. 13 (11); O. Reg. 69/15, s. 3 (10).

SAME

(11.1) For greater certainty, a motion form (Form 14B) may be used if making a motion for an order under subrule (3.1), (3.3), (3.4) or (5.0.1) or an order under clause (11) (b). O. Reg. 69/15, s. 3 (11).

UPDATING FINANCIAL STATEMENT

(12) Before any case conference, motion, settlement conference or trial, each party shall update the information in any financial statement that is more than 30 days old by serving and filing,

(a) a new financial statement; or

(b) an affidavit saying that the information in the last statement has not changed and is still true.  O. Reg. 202/01, s. 3 (2).

MINOR CHANGES

(12.1) If there have been minor changes but no major changes to the information in a party’s past statement, the party may serve and file, instead of a new financial statement, an affidavit with details of the changes.  O. Reg. 202/01, s. 3 (2).

TIME FOR UPDATING

(12.2) The material described in subrules (12) and (12.1) shall be served and filed as follows:

1. For a case conference or settlement conference requested by a party, the requesting party shall serve and file at least seven days before the conference date and the other party shall serve and file at least four days before that date.

2. For a case conference or settlement conference that is not requested by a party, the applicant shall serve and file at least seven days before the conference date and the respondent shall serve and file at least four days before that date.

3. For a motion, the party making the motion shall serve and file at least seven days before the motion date and the other party shall serve and file at least four days before that date.

4. For a trial, the applicant shall serve and file at least seven days before the trial date and the respondent shall serve and file at least four days before that date.  O. Reg. 202/01, s. 3 (2).

QUESTIONING ON FINANCIAL STATEMENT

(13) A party may be questioned under rule 20 on a financial statement provided under this rule, but only after a request for information has been made under clause (11) (a).  O. Reg. 114/99, r. 13 (13).

UPDATING CERTIFICATE OF FINANCIAL DISCLOSURE

(13.1) Before any settlement conference or trial management conference, a party who has served a corrected, updated or new version of a document referred to in subrule (3.1), (3.3), (3.4) or (5.0.1) in accordance with subrule (15), or additional documents in accordance with subrule (16), shall serve and file an updated certificate of financial disclosure (Form 13A), no later than,

(a) seven days before the conference, in the case of the party requesting the conference or, if the conference is not requested by a party, the applicant or the party making the motion, as the case may be; and

(b) four days before the conference, in the case of the other party. O. Reg. 69/15, s. 3 (11).

NET FAMILY PROPERTY STATEMENT

(14) Each party to a property claim under Part I of the Family Law Act shall serve and file a net family property statement (Form 13B) or, if the party has already served a net family property statement, an affidavit saying that the information in that statement has not changed and is still true,

(a) not less than 30 days before a settlement conference; and

(b) not more than 30 days and not less than seven days before a trial.  O. Reg. 114/99, r. 13 (14); O. Reg. 69/15, s. 3 (12).

EXCEPTION, FAMILY ARBITRATION CLAIM

(14.1) Subrule (14) does not apply if the property claim arises within a claim under the Arbitration Act, 1991 or the Family Law Actrelating to a family arbitration, family arbitration agreement or family arbitration award. O. Reg. 388/12, s. 5.

COMPARISON OF NET FAMILY PROPERTIES, JOINT

(14.2) Parties who have served and filed net family property statements in accordance with subrule (14) shall file a joint comparison of net family property statements (Form 13C) no later than seven days before a settlement conference, subject to subrule (14.3). O. Reg. 69/15, s. 3 (13).

COMPARISON OF NET FAMILY PROPERTIES, SEPARATE

(14.3) If the parties fail to agree on a joint comparison of net family properties, each party shall serve and file his or her own comparison of net family property statements (Form 13C) no later than,

(a) seven days before a settlement conference, in the case of the party requesting the conference or, if the settlement conference is not requested by a party, the applicant or the party making the motion, as the case may be; and

(b) four days before the settlement conference, in the case of the other party. O. Reg. 69/15, s. 3 (13).

DUTY TO CORRECT, UPDATE DOCUMENTS

(15) As soon as a party discovers that a document that he or she has served under this rule is incorrect, incomplete or out of date, the party shall serve on the other party and, if applicable, file, a corrected, updated or new document, as the circumstances require. O. Reg. 69/15, s. 3 (14).

DUTY TO ADDRESS OMISSIONS IN FINANCIAL DISCLOSURE

(16) As soon as a party discovers that he or she failed to serve a document required to be served under subrule (3.1), (3.3), (3.4) or (5.0.1), the party shall serve the document on the other party. O. Reg. 69/15, s. 3 (14).

ORDER, IF DOCUMENT NOT PROVIDED

(17) If a party has not served or filed a document in accordance with the requirements of this rule or an Act or regulation, the court may on motion order the party to serve or file the document and, if the court makes that order, it shall also order the party to pay costs. O. Reg. 69/15, s. 3 (14).

OTHER OBLIGATIONS CONTINUE TO APPLY

(18) The duty to provide information under this rule does not affect any other duty set out in any other Act or regulation for the party to provide information to the other party in relation to a claim to which this rule applies. O. Reg. 69/15, s. 3 (14).

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