Cunningham v Seveny
Disclosure requirements
In 2017, the Alberta Court of Appeal in Cunningham v Seveny emphasized the importance of full and accurate financial disclosure. This, the court held, is a necessity in order to calculate appropriate child support.
At OP Lawyers LLP, our expert family lawyers in Calgary understand the intricacies of the process involving exchange of disclosure and we understand the importance of full financial disclosure to ensure fair outcome related to support.
Accurate production of disclosure is a necessity when parties are required to arrange for child support after separation or divorce. If a party fails to provide accurate disclosure, they may have their income imputed. Disclosure of income is required by law and a party that earns an income through a corporation has certain obligations that they must meet.
While for accounting purposes corporate deductions or expenses are reasonable, when it comes to assessing income for family law purposes, the courts take a stricter approach with respect to expenses claimed under a corporation.
The courts will assess reasonableness of expenses that ultimately reduce an income of a party for child support purposes. Some reasonable expenses may include insurance, legitimate office expenses, salaries etc. When the court assesses a party’s income, they will add back expenses deducted that are held to be unreasonable for family law purposes. Some expenses that will be added back to the party’s income may include deductions related to meals and entertainment, deductions related to use of a family home for office expenses or expenses related to personal use of a vehicle.
While there are many factors that the courts will consider, the party that earns an income through a corporation is under an obligation to justify business expenses and must provide full financial disclosure including a breakdown of all expenses, financial statements and receipts.
At OP Lawyers LLP, our expert Calgary family lawyers understand the requirements of financial disclosure when it relates to support. If you have a question related to obligations of financial disclosure, please contact our Calgary family lawyers to arrange a consultation and discuss your obligations under the law.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. For advice specific to your circumstances, please consult a qualified family lawyer at OP Lawyers LLP or another legal professional.