What If My Spouse Hid Assets Before We Signed a Separation Agreement?

Weeks or months after signing, you learn about an account, a property or a business interest that was never mentioned. It is natural to feel betrayed and to wonder whether the agreement you signed still means anything.

This article explains why disclosure matters, how a hidden asset can affect what you agreed, and the practical steps to take. It is general information, and these situations depend heavily on the facts, so a lawyer should look at your documents.

Why full disclosure is the foundation of the agreement

Ontario.ca says a spousal support agreement should be made with full, honest financial disclosure, without pressure, and with an understanding of its terms, or a court can set it aside. It also recommends legal advice.

A separation agreement lets spouses divide property as they choose, and it is hard to change later. That is exactly why accurate information up front matters: you cannot make a fair choice about assets you do not know exist.

How a hidden asset can change the numbers

For married spouses, the equalization payment is built from the value of what each spouse owned at separation, less debts and excluded property, minus what each owned at marriage. A negative result counts as zero, and the spouse with the larger total pays half of the difference. If an asset was left out, the totals can be wrong and so can the payment.

Support can be affected too. Child support is based on income, which is generally determined from T1 General sources. A court may also impute income to a spouse as it considers appropriate in the circumstances. Spousal support factors include income differences and each spouse's circumstances.

Your options once you discover it

Only a court can change a support order or a domestic contract. To change a contract, the parties negotiate a new one and file it with the court using form 26B, and FRO cannot change the terms. If your spouse agrees to correct the deal, a new written agreement or, for support, a consent motion is the route.

If your spouse will not cooperate, you may ask a court to deal with the agreement. For support, one party files a motion to change, and the other has 30 days to respond, or 60 if outside Canada or the U.S.. Whether you can have the whole agreement set aside, or only part of it, depends on the facts and the wording of the agreement, so get legal advice.

• Negotiate a corrected agreement and file it using form 26B.
• If you agree on a support change, file a consent motion.
• If you do not agree, a motion to change starts the court process.
• For property, a court application over equalization must meet the deadline described below.

Watch the deadlines

The deadline to go to court over an equalization payment is six years from separation or two years from the final divorce, whichever comes first. If a divorce is on the horizon, the shorter clock can start sooner than you expect. Do not assume you have years, and have a lawyer confirm how deadlines apply to your agreement.

What to do next

Move calmly and keep records. Accusing your spouse before you have documents can make things harder.

• Write down what you found, when you found it, and how.
• Keep the signed agreement and every financial document your spouse gave you.
• Compare what was disclosed against what you discovered. Financial statement forms such as Form 13 or 13.1 are a useful checklist of the information to gather.
• Collect past income tax returns. The usual benchmark is the three most recent taxation years.
• Check the dates: separation, any divorce and the signing date.
• See a lawyer promptly to review the agreement and your options.

Frequently asked questions