Disclosure of Financial Information
For Separation and Divorce Mediation
Family separation and divorce mediations encompass a wide range of possibilities and outcomes, with emotions frequently running high. During separation and divorce the issue of property division can be quite a concern for some. One spouse may hide assets or financial information from the other, or there may be a suspicion of such concealment.
Still others state that they and their spouse have reached an agreement on family matters such as property division, and/or child support, and/or spousal support, and only need a mediator to draft and formalize their agreement. They believe there is no need for the mediator to conduct separate pre-mediation interviews with each spouse or have a facilitated discussion. Though the couple may have reached an agreement it is the responsibility of the mediator to ensure the agreement is fair and that full financial disclosure was shared between parties. To do this the mediator must interview the parties and have a facilitated discussion should there be any areas in the agreement needing clarification or which may be deemed unfair. The mediator must understand the views, issues, and desired outcomes of all parties involved to avoid a one-sided, unilateral or unfair agreement.
People who may hide assets or create unilateral or unfair agreements may do so for various reasons, including:
distrust,
emotional pain,
fear,
revenge,
greed,
a desire to hurt others,
a lack of understanding of the household's financial situation.
These behaviors can complicate and extend the separation and divorce mediation process or prevent it from occurring.
It is important both spouses prioritize open communication, transparency, and the involvement of professionals, such as JRB Mediations, for guidance and facilitation of fair negotiations. This open approach helps ensure a more equitable resolution and mitigates negative impacts on all parties involved.
Financial disclosure is a must for separation and divorce issues. The financial information required for disclosure documentation varies depending on the matters being mediated. For example, if the issues to be mediated are child and spousal supports then income disclosure is required. If the issues also include property division, then disclosure of all assets and debts is also required. A notarized copy of a statement of financial disclosure and the financial documents of both spouses is necessary. This completed package is shared between spouses (or interdependent partners) and with the mediator.
Why is notarizing of documents Important?
Notarizing is swearing a legally binding oath that the information being provided is a complete and accurate statement of your financial affairs.
Some mediated agreements include a significant penalty clause for non-disclosed assets.
If its determined that financial information was hidden, the agreement can be set aside in future.
If one party does not want to provide this financial information, the other party can seek legal counsel advice and make an application to the court to have the court order the documents to be supplied.
Financial information gathered by the parties is generally based upon a courts mandated list such as the Alberta Court’s Mandated List of Financial Documents and its associated Financial Disclosure Statement.
What Do I do After Gathering all Relevant Documentation?
Once you have gathered your information and have completed a financial disclosure statement or similar document, you can scan your documents as pdfs and send them your mediator, such as JRB Mediations.
Mediators are NOT responsible for ensuring parties have disclosed all financial information. This is the responsibility of the parties themselves.
Parties may require the assistance of other professionals such an accountant, valuator, etc. to provide the required disclosure statement, depending upon the complexity of financial information to be gathered.
How should the financial information be organized?
Information is typically formatted in the order of assets, debts, other, income, and compiled monthly income tables.
Documents should be identified by:
your name,
if the information is joint with your spouse or someone else, or
if it is in only your name or only your spouse’s name.
Account balances and numbers should be circled for quick review.
Any additional information outside the financial disclosure statement should be summarized and notarized and included in the package to help tell your financial story.
Typically, these documents, including a notarized financial disclosure statement are provided to your mediator, such as JRB Mediations, at least two weeks prior to the scheduled mediation, and shared with the other party.
It always best to seek advice and information from legal counsel prior to entering separation and divorce mediation so that you can make informed decisions.