Knowledge Base

Navigating Financial Disclosure in Family Law Part 3

Written by Allison Klein | Jul 29, 2024 11:27:18 PM

Navigating Financial Disclosure doesn't have to be an overwhelming piece of the family law puzzle. Now that we have covered the basics in part 1 and taken a closer look at the Form 13.1 Financial Statement in part 2, we are ready to wrap up this series with a deep dive into Form 13 (support claims only). Ensure accurate financial disclosure while navigating your divorce with the following helpful tips. We are here for you! 

Part 3: Understanding the Form 13 Financial Statement

Excerpt from Form 13 Financial Statement

Similar to the Form 13.1 Financial Statement, Form 13 is also looking for a snapshot of your current financial circumstances. It is important to note that Form 13 is to be used when you are seeking support claims only (child support and/or spousal support). If property claims are involved, you will be required to complete Form 13.1

Form 13 Tips for Accurate Financial Disclosure 

Where the Form 13.1 Financial Statement asks you to provide financial values for three different dates, Form 13 is only concerned with your current circumstances. This means that all the information disclosed should accurately reflect your financial position at the time you completed the form. 

  1. Income: Income should reflect your current monthly earnings. The preferred way to disclose income is based on what you are receiving and any anticipated changes in the next twelve months. For any item that is an estimate (such as commissions) you should note this and explain why it is estimated.
  2. Other benefits: when disclosing "other benefits" you might include whether you have the use of a company car, dental or life insurance, extended health benefits, cell phone, stock options, etc. Make sure to mention any extras from your overall compensation package and or “perks.”
  3. Expenses: When making support claims, accurately disclosing your expenses is crucial. This section of the form should cover your current expenses or else your best estimate over the last twelve-month period. Some things to note include: 
    (1) If your children live with you, include their expenses in with yours if appropriate such as groceries. This will be especially important when seeking child support. 
    (2) Some expenses are irregular, like car repairs. Do your best to provide an accurate estimate and always specify when a value is estimated. Note, extraordinary expenses for the kids are handled in Schedule C at the end of the financial statement. This is where you might disclose things such as childcare, summer camps, medical expenses etc.
    (3) Never inflate your expenses; be accurate and truthful.
    (4) If you are running a deficit between your income and expenses, you will need to provide an explanation to the court about how this is being financed (i.e. Borrowing money, spending savings, etc.).


    Excerpt from Form 13 Financial Statement
  4. Assets: In this section of Form 13, only include what you own or have a financial interest in. If you are a joint owner, specify your 50% share. 
  5. It is the market value of assets that should be listed, not the purchase price or replacement value. Certain items depreciate significantly after purchase so remember it is what you could reasonably expect to receive if you sold the item, not what you paid for it and not its insured value.
  6. It is the market value of assets that should be listed, not the purchase price or replacement value. Certain items depreciate significantly after purchase so remember it is what you could reasonably expect to receive if you sold the item, not what you paid for it and not its insured value.
  7. Bank accounts includes ALL bank accounts (RRSPs, RRIFs, RPPs, LIRAs, TFSA, Canada Savings Bonds, GICs, chequing, savings, shares, stock options, mutual funds and any other investments). Even if you are not actively using an account you must disclose its existence. If you hold assets outside of Canada, the amounts will be converted to Canadian dollars and included.
  8. Bank accounts: this includes ALL bank accounts (RRSPs, RRIFs, RPPs, LIRAs, TFSA, Canada Savings Bonds, GICs, chequing, savings, shares, stock options, mutual funds and any other investments). Even if you are not actively using an account, you still must disclose its existence.
    Note: If you hold assets outside of Canada, the amounts will be converted to Canadian dollars and included.
  9. Life insurance: while you are required to disclose the existence of both term policies and whole life policies; only whole life policies have a cash surrender value (CSV). Therefore, for term policies you will leave the CSV column blank. 
  10. When disclosing business interests, you must include sole proprietorships!
  11. If someone has borrowed money from you and it remains outstanding on the relevant dates, remember to include it. You can also include any forthcoming income tax return refunds, shareholder loans, etc.
  12. Other property can include things like intellectual property, air miles or credit card rewards points, and valuable animals (i.e. horses).
  13. Debts: includes things like mortgages, personal loans, lines of credit, taxes payable, overdrafts, outstanding bills and credit card balances. However, credit cards are only included if you are the principal cardholder. If you are supplementary cardholder you would not include the balance – just the existence of the card.
    Note: Personal debts (like loans from family members) will be closely scrutinized. Be prepared to provide disclosure like a promissory note, or history of repayment. If no payments or demand for payment has been made, the court will likely treat the loan as a gift.

If necessary, you can include notes on your financial statement to explain necessary details to the court. For example, you are a joint account holder on your elderly parent’s bank account. This is for estate planning purposes and the funds are not yours; they solely belong to your parent. You must still disclose the existence of the account on the Financial Statement but include a note so the money is not attributed as your asset.

What About those Schedules at the End?

At the end of the Form 13 Financial Statement, you will find a page featuring Schedule A: Additional Sources of Income; Schedule B: Other Income Earners in the Home; and Schedule C: Special or Extraordinary Expenses for the Children. 

  • Complete Schedule A if: you have income that is not shown in Part I of the financial statement (for example, partnership income, dividends, rental income, capital gains or RRSP income)
  • Complete Schedule B if: If you have made or responded to a claim for child support that involves undue hardship or a claim for spousal support.
  • Complete Schedule C if:  you or the other party has sought a contribution towards special or extraordinary expenses for the child(ren)

In our three-part series about navigating financial disclosure in family law, we have emphasized the importance of transparency and accuracy in these proceedings. Kickstarting with a breakdown of the basics in part 1 followed by a deep dive of the Form 13.1 Financial Statement in part 2; we have now completed the series with a closer look at Form 13.

Remember, complete financial disclosure is the foundation for settling any family law case. With the information outlined in this series you can be sure to provide accurate financial disclosure during your divorce and come to a resolution that meets your needs. If you are looking for more hands-on help, our team at Shulman and Partners is here for you!