Preparing Financial Statements: Tips for Success – Part Two

Recap and Introduction

As discussed in our previous blog post, "Preparing Financial Statements: Tips for Success – Part One," we know that preparing Financial Statements for a family law matter can induce feelings of worry and stress. However, we have provided some helpful tips for success to get you started and take some of the stress out of completing the Form 13.1 Financial Statement. If you are new to financial disclosure and the various financial statement forms, please check out the following posts before proceeding:

• Financial Disclosure in Family Law: Is It Required?
• Help! Which Financial Statement Form Do I Choose?

In "Tips for Success - Part One," we tackled how to complete Parts 1 – 3 of your Form 13.1 Financial Statement. We will now explore Parts 4 through 7.

Parts 4 and 5: Assets Property and Debts and Liabilities

The sections on assets and liabilities are two of the meatiest sections of the financial statement and where one might become a bit overwhelmed. Here parties are tasked with listing various property real and personal such as land (matrimonial home), vehicles, bank accounts, pensions, insurance, business interests, money owed to them, and other property, as well as all debts and liabilities (mortgages, credit card debt, loans, etc.) for the following dates: date of marriage, valuation date (also known as the date of separation), and today’s date.

When tackling these sections, it might be simplest to think of all the assets and debts you currently have, then think about if these were also in existence on the valuation date or marriage date. If they were, list the values in the respective columns. If they were not, then you would simply write N/A (not applicable) in the applicable column.

Example Regarding Land: Bob, 56, owns a home at 123 Toronto Road, Toronto, ON M1N 2O3 as of April 2024. Bob married Barb on June 29, 1994, and the two separated on October 14, 2021.

When completing his Financial Statement, Bob will first list the home as an asset and then write in the “today” column the current or most recent value of the home. Bob owned the home on the date of separation/valuation date and happens to have a valuation report in his possession as he and Barb were considering selling the home in the weeks before they separated. Bob will then list the value from the report in the “Valuation date” column. As Bob did not own the home at the time of marriage, he would simply put N/A in the “date of marriage” column.

Like Bob, you can apply these principles to any asset or debt when completing your Financial Statement.

Pro Tips:

1. For the “Today” column, pick any recent date and be consistent.
2. Think of your current assets and then think back to determine whether you owned those assets on the valuation date or date of marriage.
3. For jointly owned assets, you only need to list your interest. Example: if a joint bank account has $5000.00, make a note of the account type and the fact that it is jointly owned, list the full value of the account, and note that your interest is 50%. In the respective dated columns, write 50% of the total value.
4. Utilize notes where necessary. If there is an asset or debt that does not currently have a value because you are awaiting a valuation or waiting for statements to be mailed to you, you may put “TBD” (to be determined) in the relevant column or leave a note explaining why the values are not listed.

Part 6: Property Debts and Other Liabilities on Date Of Marriage

This is a short section that automatically populates the total value of assets, debts, etc., on the date of marriage and provides the net value of all property owned on the date of marriage as well as the value of all deductions. It must be noted that the value of the matrimonial home on the date of marriage will not be included in this section.

Part 7: Excluded Property

One might wonder, “If the property is excluded, why do I need to list it?” and that is a completely fair question. However, excluded property still needs to be disclosed as follows: An asset is listed under the appropriate heading and then noted in the Excluded Property section, thereby deducting it from your net family property. These assets include inheritances, gifts from third parties, assets excluded by a domestic contract, and more.

These tips are a general guide, and each financial statement is unique and tailored to an individual’s financial situation. Please contact us to book a consultation if you have any questions or concerns regarding completing and providing financial statements in family law proceedings.