What is the impact of a party’s failure to disclose financial information in a family law proceeding?

As the court stated in Manchanda v. Thethi, 2016 ONCA 909 at para. 13, the obligation to disclose financial information is the most basic obligation in a family law proceeding. The obligation is strict, immediate and ongoing. A party’s non-compliance must be considered in the context of this strict financial disclosure obligation. Rule 1(8) provides the court with the authority to strike claims. A party who chooses “not to disclose financial information or to ignore court orders will be at risk of losing their standing in the proceedings as their claims or answers to claims may be struck.”

In Roberts v. Roberts, 2015 ONCA 450 at para.12, the court warned that the “[f]ailure to abide by this fundamental principle impedes the progress of the action, causes delay and generally acts to the disadvantage of the opposite party. It also impacts the administration of justice. Unnecessary judicial time is spent and the final adjudication is stalled.” Further, it should not be necessary to issue court orders to obtain compliance with this immediate obligation.