Ongoing Disclosure of Income

The duty for ongoing disclosure of income information for child or spousal support payable can be bothersome for many people.

The yearly exchange of tax returns and other financial documents can be seen as burdensome and an invasion of privacy after parties have separated and settled the terms of their divorce. However, the rules for ongoing disclosure are consistent and they apply to everyone in every situation when the payment on ongoing child or variable spousal support is an issue. It is a relevant issue for both the payor and recipient of support.

Simply stated, once child or spousal support is payable between two people there is an ongoing duty between them is to exchange financial disclosure. The information disclosed must allow one party to discern the income of the other party and decide if they need to vary the present support payment. This can be as simple as providing the complete T1 tax return to the other party every summer, or the provision of additional documents when someone is self employed.

A self-employed payor or recipient of support needs to further qualify their income. It is necessary for them to provide additional financial documents to outline the nature of expenses calculated and an explanation as to why it is a reasonable corporate expenditure for which there should be a deduction from their income. Although this may initially seem onerous, it can be accomplished with setting down an explanation with either your bookkeeper or accountant or done by yourself depending on the complexity of the expenses.

The legislation guiding support and decisions of our Supreme Court have all focused on the provision of information in having parties being able to determine if the support payable between them is proper. This means exchanges of information, but also exchanges of information that can be used by the other party in determining their rights or obligations of support.

Aaron Vanin, Barrister and Solicitor
Resolve Legal Group