What happens when a payor hides their income and financial disclosure is incomplete?

When a payor fails to provide proper financial disclosure or appears to be hiding income, the court has tools to protect the child's interests. The most common response is imputing income — the court assigns an income amount to the payor based on the best available evidence, even without the payor's cooperation. Courts can also draw adverse inferences from a failure to disclose, meaning they are permitted to assume the payor earns more than disclosed.

Courts look at circumstantial evidence when direct disclosure is unavailable: the payor's lifestyle, assets, spending patterns, employment history, and industry pay rates. A payor who drives a luxury vehicle, owns property, or takes expensive vacations while claiming minimal income will find it difficult to persuade a court that their support obligation should be low. Credit card statements, bank records, and social media posts have all been used in Ontario cases to challenge income claims.

A recipient can bring a motion for disclosure compelling the payor to produce specified documents. Failure to comply with a disclosure order is a serious matter and can result in costs awards, contempt findings, or the matter proceeding on an adverse inference basis. If you suspect the other parent is hiding income, document any evidence you observe about their spending or assets and bring it to your lawyer promptly.