When couples decide to end their marriages, very often the claws come out. Although lawyers advise their clients in British Columbia to disclose all their assets to their spouses in divorce situations, that isn’t always what happens. It also doesn’t mean that the person’s former spouse will automatically get some of those hidden assets.
Disclosure usually means providing tax returns, financial statements from the bank, and any interests in stocks and insurance policies as well as employment bonuses. According to Canada’s Family Law Act, these disclosure requirements are the law, but they can also result in litigation. The courts often look at the length of the relationship. Undisclosed assets or debts shouldn’t be considered in isolation of surrounding circumstances.
The Family Law Act says an equalization of the net worth each spouse amassed during the marriage, full disclosure and value of assets and debts is necessary in order to calculate what is required by the Act when it comes to things like spousal support. The law indicates that for support calculations it is necessary to know the income and benefits of each spouse. Failing to provide complete disclosure may cause problems moving forward.
Issues such as these may cause increased anxiety during the divorce process. A British Columbia lawyer can clarify such complex issues as financial disclosure. A lawyer may be able to help a client to come to a settlement agreement with a former spouse to save time and money of litigation. He or she can also explain the necessity of being transparent when it comes to assets and debts.